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WHAT CONSEQUENCES ONE MUST FACE WHILE NOT REPAYING GOLD LOAN?

Posted on Monday May 31st, 2021

A gold loan is sanctioned by various lending institutes against gold to meet urgent financial needs. One needs to pledge gold articles as security against loan and have to pay the applicable interest rates on the borrowed amount at the end of the given repayment time. The major benefits of this loan is that interest rates are much lower than other types of loans and you can Apply For Gold Loan with a poor credit history as your gold assets serve as collateral. However with all these benefits comes an important query that what if you fail to repay the gold loan? Several times, you may suffer tough times; it’s difficult to repay the loan on time. Let’s see what happens if you fail to repay the loan.

CIBIL turns bad: The credit score indicates your timely loan repayments and gives the lender an idea about if you are prompt with loan repayments. The lending institutes send your repayment data to various credit bureaus and prepare your credit report to assign a CIBIL score. If you default on any kind of loan you will surely get a bad credit score. The financial institution won’t sanction you any new loan is you have a bad credit history. If anyhow you manage to secure a loan, the rates of interest could be really high.

Penal interest: A lender may charge you the penal interest for time overdue. This is literally over and above the applied interest rate that you repay for your gold loan and this may vary for different lenders. The penal interest rate is about 1-7% for a year.

Legal action: Usually lenders don’t have problem if there are two or three slip-ups in loan repayments. If a default on EMIs happens for three consecutive months then you may get in problem. Moreover, if you ignore the warning alerts from lenders, you may get a legal notice at your provided residence. You are informed on when to repay your loan EMIs.

Auction of gold: As you have pledged your gold to serve as collateral, so you could lose your precious metal and ornaments to the lender if you default on gold loan. In case, you don’t pay back the gold loan by the final repayment date, you lose your assets as the lending institution will auction your gold items to recover the outstanding dues. In such situation, you are not allowed to stop this auction as lender lawfully recovers the dues by selling your yellow metal.

If you Apply For Gold Loan Online or offline, you may get tenure of minimum twelve months to maximum thirty six months. One may have an option to repay the loan against gold through monthly EMI or interest only. It’s all up to you. Which method you choose, you would have to renew the loan by paying processing fee. Therefore, if you are unable to repay the principal, renew your gold loan by paying levied processing fee or any difference in the market price of gold.


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HOW TO UTILIZE INSTANT CASH FROM GOLD LOAN?

Posted on Thursday April 29th, 2021

If someone wants to address any emergency financial needs, the efficient option one can choose is loan against gold. This loan is used as a ticket that makes easier for individual to cover their monetary commitments without getting panic. A gold loan need not require any lengthy application process and ensure that your financial needs get serviced at the earliest. The Online Gold Loan can be the most convenient option to tide over a period of cash crunch. It can be much beneficial, so take a look how to utilize the cash raised from gold loan.

⇛ Fulfill the business requirements: Some of the businesses like salons, boutiques and small eating joints do not require huge working capital for smooth operations. Thus, these business owners can opt for small loan money which helps to meet their capital requirements and can ensure their business keeps running without any hassle. It is also beneficial for the individuals who want to set up a business that does not need a huge investment.

⇛ Home improvements: If you fall short of money to cover your home improvement expenses, then a loan against gold can be your savior. You can easily secure the required funds to refurnish your home through a cash flow that you availed by pledging your precious metal with the particular lending institution.

⇛ Purchasing personal products: One of the most important reasons to Apply For Gold Loan is to purchase an electronic appliance for your home or office, any needed gadget. The loan quantum is especially handy when it comes to purchase air conditioners, refrigerators etc for your personal or professional space, a tablet or laptop for your children education or furniture to refurbish your home.

⇛ Medical emergencies: Life is full of uncertainties and any of medical emergencies can cause a cash crunch which can be difficult to cover up with your savings and you have to think out a back-up plan. Usually, this instant loan can make a perfect option for you which can support you to regain the financial footing under such circumstances.

These above mentioned requirements can be easily addressed with the help of online gold loan. The loan money availed by pledging your gold can be beneficial when it comes to meeting these funding requirements, owing to multiple benefits they offer and without any end-use limitations. One can borrow the funds based on the value of the gold they pledge as collateral and need not to meet any stringent eligibility criteria to avail the loan.

ShubhBank is a digital lending finance company that has not only made the gold loans easily accessible to potential loan seekers but also made availing instant cash online through its website ShubhBank.com. One just only needs to submit an application through our website owing to easy-to-use interface. The loan can be availed 24X7, as required by the borrower by pledging the gold. You can utilize your pledged asset without depreciating its value when you repay the entire outstanding amount in a given period of time.


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HOW YOU CAN PROCEED WITH GOLD LOAN?

Posted on Monday March 15th, 2021

In India, purchasing gold on special occasions and preserving it as precious ornament is an old tradition. Due to such huge demand where this yellow metal is used as savior in financial crisis, the prices of gold are also skyrocketing. Sometimes in life, you have to struggle for financial back up required during emergency situations. In such case, pledging this precious metal at lending institution help you to provide liquidity. Most of the borrowers opt Loan against gold which enables the person to generate quick money and utilize for personal or business purpose.

Process to secure Gold Loan
One need to visit the particular financial institution with your gold ornaments or can apply for gold loan online from website.
Upload or provide the basic documents required by the lender to get approved for the lender.
Afterwards, gold valuation is done to check gold purity then the loan will be sanctioned which may range from 75-80% of market value of gold. Moreover, lender may deduct processing fees which varies from lender to lender.
On approval, the loan agreement will be signed between lender and borrower and loan amount get disbursed directly to the bank account of borrower.

Benefits of Loan against Gold
Instant approval: You can secure this loan by pledging any type of gold jewelry either it is a gold ring, necklace or coin. You will get approved for the loan money as per the weight of pledged ornaments.

Security assurance: The borrower will be offered with 100% security assurance by keeping his/her pledged assets at high-security place. Even, you can rest assured of the security of your precious metal if you have taken a loan for longer tenure.

Higher gold loan value: The lender will give you the highest loan to value ratio considering the status of the current market value of the gold. It will help you to get the best value compared to other loan options.

Lower interest rate: You will get the lowest possible interest rates on gold loan as it is a secured type of loan. You can also pay the rate of interest as per your convenience according to preferred payment mode.

Minimum documentation: Whether you Apply For Gold Loan Online or offline, you do not have to submit or upload the piles of papers. You just ask to submit basic proof documents such as passports, voter id’s, driving license, aadhaar card, pan card, passport size photographs etc. to get approved for loan.

No prepayment penalty: In case, you want to end the loan before its repayment period then there will be no deduction on the prepayment. You can easily repay the loan money before the end of gold loan tenure.

Hence, if you are in tough financial times where you do not have enough savings to help you come out of the cash crunch, then securing a loan against gold will be best option for you. Do a proper research, and look for a genuine and authorized lender who has a prior record of offering a gold loan.


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HOW GOLD LOAN CAN HELP YOU IN QUICK NEED?

Posted on Monday February 8th, 2021

There are some uncertain times when unforeseen expenses can deter your monthly income towards various expenditure outlays. In such situations, most of the people turn towards their savings to escape out the period of cash crunch by compromising their financial security in the long run. Nowadays, emergence of cash loans has effectively reduced the financial burden considerably as they are extremely helpful to get short-term funding on an emergency basis. Moreover, the minimum eligibility criteria associated with such loans allow potential loan seekers access the funds without much hassle.

The perspective borrowers can eliminate their emergency requirements easily by opting for popular funding solution like gold loan these days. The gold loan can help borrowers meet their urgent requirements by offering better convenience as compared to other funding options. ShubhBank has streamlined the loan processing of yellow metal to quite an extent. Some of the perks are offered by us to boost the convenience of availing such loan which is listed below:

High LTV ratio: Loan to value ratio is the percentage of the pledged security’s total value that can be secured as a loan at maximum. To exemplify, if the precious metal you pledge is valued at Rs. 20 lakh, and the LTV ratio offered against it is 75%, you can avail Rs. 15 lakh as the loan quantum. In this context, you can avail the highest loan to value ratio against your yellow metal at nominal interest rates.

Minimum documentation requirement: To take a Loan against Gold you will neither need to undertake an elaborative paperwork nor comply with any strict eligibility criteria. In gold loan, the loan quantum disbursed is based solely on the value of gold ornaments you pledge, you can secure it without submitting any documents like your income tax return proof and such. Apart from this, the lender does not take your credit score into account to deem you eligible for the borrowing.

Assured security of the collateral: You can give away the hesitation of pledging your gold to take the loan with lender’s uncompromising measures to secure your precious metal. To illustrate, the yellow metal collected from you as a security is deposited to the lender’s vault where it is stored safely until the time you repay the loan. Sometimes, it receives additional security through an insurance scheme offered at no additional charges.

Flexible repayment term: If you Apply For Gold Loan you are enabling to opt for a repayment tenure ranging between few months to years. In such period, you only have to pay the interest accrued against the quantum availed and the rest as bullet payment after the loan tenure get completed as compared to other secured types of loan.

With such great benefits, gold loan makes for the most convenient option when it comes to meet any type of cash requirement- whether long term or short term. You must have to understand that how gold is valued before you apply for it to ensure that you are aware of the entire loan procedure.


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WHY GOLD LOAN IS SHINING IN THE CURRENT SITUATION?

Posted on Thursday October 15th, 2020

In recent times, there has been constant rise in gold prices since June 2020. Although, whole world has taken a setback in this ongoing pandemic, but gold is shining brighter with each passing day. From last couple of months, small businesses and shops are suffering losses, now it’s time for them to get their businesses back on track. With the passing guidelines of resuming businesses, business owners and shop owners are turning to loan against gold to meet the working capital requirements such as procuring raw materials, operational liabilities and others.

In a current situation, gold loan is the convenient option as the borrower has to pledge their yellow metal as collateral to avail loan. Due to increase in gold prices, people are taking advantage of rising rates to secure big loan quantum, that’s why gold loan is shining in the current situation. The growth in demand is due to the large number of people associated with small factories, shops, farming etc. need to survive their work post the unlock phase. There are some considerable factors enlisted below which shows gold loan will still not fade.

⇒ Loan Quantum: If you are taking a gold loan, your chances of getting a higher loan quantum increases as the price of gold are recorded to be at their peak value, these days. Financial institutions are at ease while lending loan against gold because the reason being that you are pledging your gold as collateral. The maximum limit of loan money depends upon the quantity and quality of your metal as the lenders are offering 75% LTV ratio on the pledged gold.

⇒ No Credit History required: This is the valuable aspect of availing a gold loan as you do not need to have any credit history. Even if your credit score is not good while you Apply For Gold Loan you shall be granted the loan because lender can recover the outstanding amount by selling your pledged gold, in case of any default.

⇒ Minimal Documentation: You only require basic KYC documents while taking a loan against gold and you will get a great feature of flexible repayment options too. Most of the lenders offer easy loan processing and sanction the loan instantly in few minutes and disbursal within few hours with nominal documentation.

⇒ Smart Interest Rates: The best feature of gold is that it is offered on lowest possible rates of interest as you have pledged your yellow metal with lender decreasing the potential risk of any default.

The financial institution are coming up with great deals to lure loan seekers for taking a gold loan with the increasing demand in lending sector. Various NBFCs and banks are curating towards reaching out to maximum audience by digital lending platforms, online gold loan and insurance of gold and doorstep services among other to serve the potential loan seekers. If you wish to Apply For Gold Loan Online from ShubhBank to resume your business operations or to fulfill your requirements, click on ShubhBank.com.


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COMMON MISTAKE TO AVOID WHILE APPLYING FOR GOLD LOAN

Posted on Monday September 28th, 2020

Gold loans are the straight forward method of raising money in case of an emergency. If you need urgent money for marriage or festivals or travel, you can formally go fall for the power of gold. You can mortgage your gold ornaments to the bank and financial institutions. You do not need to sell the gold ornaments in the market; you can simply mortgage it to the moneylender. However very often people make some fundamentals mistakes while Apply For Gold Loan.

1. Lenders Credibility: – A major blunder that people commit is taking a loan without checking lenders credibility. In a gold loan, you have cash in hand but for that, you have pledged your gold ornaments. Therefore the risk is more on the borrower as compared to the lender. You must check the background of lenders. A gold loan can be risky as a gold ornament will be kept by the lender till you pay the whole amount. So you must take a gold loan from reputed banks or financial institutions as they abided by RBI regulations.

2. Less Research: – You would be doing less research while applying for the loan. When you search online you will get many websites showing you interest rates or processing fees but take your time. Do not run for choosing the first offer. The more you will search, you will get better options.

3. Negligence of repayment structure: – Another common mistake is the negligence of the repayment structure. It is extremely important to study these structures and select the best one for yourself. Check your liquidity of cash flow so that you can pay the EMI amount other you will end up losing your gold jewelry. There are many options for paying the loan amount like Regular EMI, Only Interest EMI, and Partial repayment, Bullet repayment. You can select the best suitable method by yourself.

4. Read all conditions: – Before applying for a gold loan always remember the devil lies in the detail. So get the clear aspect of loan to value calculation. Borrowers must understand how the bank or financial institutions in calculating the value of your gold and based on that you will get the amount of loan. As a borrower, you need to have a good idea about the market value of gold. Mostly Bank offers loans at 22 carats of gold or above. If the gold ornaments are less or impure then the loan can be rejected. Gold coins are also accepted if they are above they can be accepted as collateral.

5. Not Checking prepayment charges: – While lenders do charge any prepayment fee for a Gold Loan but some charge some 2.5% from the outstanding amount if you pay before the tenure period. The prime objective of making prepayments is to save on the interest cost; incurring prepayment penalties would reduce the benefit from making prepayments. Hence, opt for a lender that charges minimal or no prepayment/ foreclosure fee.

To conclude you must remember all the above-mentioned points while applying for a gold loan.