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FEW MISTAKES TO AVOID WHILE APPLYING FOR A GOLD LOAN

Posted on Monday September 7th, 2020

Gold loans are the convenient and straight forward method of raising the funds in emergency situations. Gold is usually secured in the forms of ornaments and jewelry often comes to the rescue whether you need it for wedding expenses, travelling or starting up a new venture. Many of the banks and NBFCs are in competition to give gold loan with great benefits and you can monetize your yellow metal without selling it in the market. However, many a times people get misguided, therefore needed to look after few mistakes to avoid while applying for a gold loan.

MISTAKES TO AVOID WHILE SECURING A GOLD LOAN
– A major setback proved for the borrower is not to check the lender’s credibility. The loan quantum in gold loan is based upon the fraction of gold that you have pledged to the lending institution resulting in the increased risk factor for borrower than the lender. Therefore, you must check the background of the chosen financial entity as you have to place your gold as collateral to the lender till the time you repay the borrowed amount back. Always choose a well-established lending institution that is regulated by RBI for gold loans.

– The other common mistake made by loan seekers is not comparing the lenders in the market. If you want to compare then you can use any of the aggregator websites as many of the lenders would be ready to give the loan amount evaluated on the basis of your gold. When you Apply For Gold Loan never go for the first offer because more you compare, better the offer you may find. Always choose a lender who offers lower interest rate or higher LTV ratio.

– There is another point that needed to be avoided is being negligent of repayment structure. It is always important to understand the structure and zero in on the best that matches your needs. Be sure about the requisite liquidity and how you are going to repay either in the form of EMIs or bullet payments otherwise you could lose your gold ornaments.

– It is important to get into the finer aspects of loan to value calculation while you Apply For Online Gold Loan or apply it offline. Most of the lending institutions rely on the data furnished by their central office to evaluate the gold and to grant you a loan for up to 70% of its market value. Being a smart borrower, you must have a good idea about the market value of your gold. However, quite often these values are flexible.

At the end, you must check upon the fine print of gold loan as yellow metal has more sentimental value and ensures disciplined repayment from the borrower. Do keep in mind the conditions in which your lender can possess the gold and auction it in case of any default or any prepayment charges if you close the loan before the tenure ends. Make sure to discuss all these aspects to have a safer and convenient loan journey.


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WHICH IS THE BEST OPTION- SELLING YOUR GOLD OR GOLD LOAN?

Posted on Thursday August 27th, 2020

It is always a mind boggling to decide over, whether to sell the gold or to take a loan against gold when someone needs money and he/she doesn’t know what needs to be done. Many thoughts start juggling throughout minds and questions surround us that should I sell my gold, will I get the right value of my yellow metal or should I apply for a gold loan? Here in this article, we will guide you about that which is the best option- selling your gold or gold loan?

Gold is not just a shiny ornament but it also carries feelings, legacy and emotions than just being an asset. Therefore, most of the people are hesitant about giving away their asset when there is a need of funds. It is always a better option to take a gold loan if someone wants to use it. The main disadvantage of selling gold is that you are only paid for jewelry and you lose the value of make in charges which adds up as significant part while purchasing the same jewelry. The emotional sentiments also counts up as one thinks to start when he/she will be able to buy the gold back while the gold prices are increasing.

Benefits of choosing a gold loan
Gold loan is the secured type of loan, where the lender only look for quality and quantity of your gold rather than your creditworthiness when you Apply For Gold Loan and sanction the amount in your bank account as per your requirement. Once you clear the repayment, you can get your gold ornaments back. This loan will save your time and unnecessary stress of selling your asset which you are not being able to buy soon. Some of the benefits associated with this loan are given below:

Higher Loan Amount: You can get higher loan amount in case of gold loan as it is a secured loan. The maximum limit of gold depends upon the quantity, you pledge against it.

No Need of Credit History: This is the major benefit of availing a gold loan as one need not to have a credit history. Even if you have a low or zero credit score, you shall be granted with loan. If you default on repayments, then lender can recover the outstanding money by selling your gold.

Nominal documentation: One only needs to provide the KYC documents either you Apply For Online Gold Loan or offline. With nominal paperwork, loan amount is sanctioned quickly within a short period of time. Gold is an over the counter product, just pledge your gold ornaments with lender and walk out with cash.

You can take a gold loan by paying very less interest rates and your precious metal will also be in safe custody. Therefore, if one needs to fulfill their requirements or to fund any emergencies, then taking a gold loan is better option than selling your gold. The loan processing is very easy and will be completed in less time.


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GOLD LOAN- PERFECT WAY TO ACCESS FUNDS BY UNEMPLOYED PEOPLE

Posted on Tuesday August 18th, 2020

Nowadays there are various conditions that must be satisfied for getting a loan sanctioned from a lending institution such as creditworthiness, financial status and so on. All these factors are used to evaluate the borrower’s ability to repay the loan. A regular source of income is the major deciding factor for lenders to approve the loan application. However, with such strict guidelines, it is possible for individuals who are unemployed to secure the funds through gold loan. Therefore, gold loan is perfect way to access funds by unemployed people as it just need source of income either you are unemployed and gold ornaments that needed to be pledged as collateral.

A yellow metal can fetch higher amounts of cash during financial emergencies. To get a gold loan sanctioned, all you need to have gold because it is not affected by low credit score, employment as it is secured by collateral. The quantum sanctioned as loan is basically a percentage of the total gold’s market value and repayment is done via monthly installments. These features attract the loan seekers to Apply For Gold Loan as it does not have any restrictions on usage. Many of the lending institutions help to get a gold loan fast. There are lots of features provided by such companies so have a look on them:

-> It is made available at customer’s doorsteps.
-> The processing of gold loan along with disbursal is completed within few minutes.
-> Most of the financial institutions have digital lending platforms.
-> Interest rates on gold loan are much lower as compared to other secured and unsecured loans.


In recent times, loan seekers are cutting down on offline lending stores because online gold loans are cheaper as it lessens the operational costs to a large extent. The online lending platforms offer low interest rates, zero processing fees, doorstep services, personalized customer support, pickup and return of gold assets. One will be surprised to know the ease of availing Online Gold Loan and it’s just a matter of few clicks to apply for it:

-> Click on the site of bank or NBFC from where you want to request a gold loan.
-> Company professionals will complete the KYC process at your doorstep.
-> The loan quantum is transferred as quickly as it gets approved in the borrower’s bank account.


As mentioned earlier in the article that gold loan can be availed by unemployed people so there are some tips to be followed to increase your chances of getting a gold loan approved:

-> Always maintain a good credit history to instill the confidence of lender in borrower.
-> Providing the genuine collateral is another way to increase your chances of approval.
-> In case of gold loan, the alternate sources of income rather than regular job can boost your chances of securing a loan.


A guarantor can also strengthen the position of loan applicant as the lender get a sort of guarantee that money will be repaid in time.


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GOLD LOAN: ALL YOU NEED TO KNOW

Posted on Thursday August 6th, 2020

Gold loan, also known to as Loan Against Gold. It is a type of secured loan. Gold loan is always availed by pledging gold ornaments with the lender in exchange for money. You can pledge your Gold ornaments, jewellery, coins, and bars to avail of the gold loan. Your gold loan would be as safe to the lender until you repay the loan amount.

Gold loan is similar to a personal loan, there is no restriction in using the money. You can use the gold loan funds for paying medical bills, Tuition fees, purchasing a car, renovation of home and emergency needs.

Features of Gold Loan:

1. Secured loan: – Gold loan is one of the type of secured loan. Your CIBIL score does not matter in this. It does not matter if your poor score. All you need to have physical gold to lend. A secured loan is offered at a lower rate of interest.

2. Flexible Repayment: – You can repay the loan either by EMI or pay regularly the interest and principal amount lump sum at the end of the loan tenure. Gold loans are popular for this flexible repayment.

3. Quick Processing: – Gold loan lenders do not bother about the Credit score as it is a secured loan. Paperwork and other formalities involved in gold loan processing is very minimal. This is because the lender gets your gold in exchange for money.

4. Quick Disbursal of loan: – Gold loan can be disbursed within 10 minutes as the documentation work is very less.

5. No restriction on funds utilization: – Funds received as gold loan can be used for any purpose. You can use funds for purchasing a car, renovation of home, medical expenses, and education expenses.

The loan amount and interest rates
The loan amount varies from organization to organization. It depends on where you Apply For Gold Loan. The loan amount will vary if you get it from a lender or a bank/financial institution. Both private and national banks offer gold loan. The amount sanctioned will be decided after verifying the purity and weight of the gold bars or ornaments. Then the current market rate for gold will be considered based on which you will get a loan. The majority of the lender and banks/financial institutions offer 75% of the value of the gold, which is pretty good!

Again the interest rate will also differ. Private lenders tend to charge higher interest rates than banks. It is a better option to get a gold loan from a bank than from a private lender. Banks levy less interest rate due to the nature of the loan. A gold loan is a secured loan. Hence the interest rate is pretty low compared to other types of loans.

Repayment of loan amount
There are different ways you can pay off the loan. You can either pay the whole amount along with interest at the end of the tenure or may choose EMI. Banks give you more options when it comes to repayment of loans than private lenders.


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HOW TO GET QUICK FUNDS THROUGH GOLD LOAN BY SHUBHBANK?

Posted on Monday July 27th, 2020

Nowadays, irrespective of what is happening with economy due to this pandemic, gold purchase continues among Indian households and prices are hiking gradually. One of major reason for this demand is, gold not only serve as precious metal or important part of culture and customs but the benefits associated with it after pledging it to lenders to get quick funds to fulfill the requirements in emergencies. With skyrocketing prices, a gold loan can fetch you a higher quantum during financial crisis. All you must have to acquire gold for getting a gold loan. It is a secured loan and does not get affected by Credit Score.

ShubhBank will make a gold loan easy for you as we are seller of many financial products. When you Apply for Gold Loan the funds which get sanctioned are a percentage of the total gold’s market value. One can make the repayments via monthly installments, after repayment, gold is returned back to the borrower. There is no restriction on usage but the interest rate varies from lender to lender. Our digital platform helps you to get a fast gold loan as the hassles involved in processing are eliminated. Let’s have a quick look at few points that how to get quick funds through gold loan by ShubhBank:

• Gold loan can be availed at your doorstep.
• The processing of loan along with disbursal gets completed in few hours.
• We have a completely digital lending platform.
• The rate of interest is very competitive which will be easy on your pockets.


When you apply a gold loan, you are able to lessen costs like operational costs to a great extent which will help you to avail lower interest rates and making your loan cheaper as most of the borrowers face the problem of not having enough funds to meet loan processing terms.

An Online Gold Loan from our digital platform offers you a low rate of interest, customized loan scheme, doorstep services as well as pickup and return of gold valuables. You will be surprised to know the ease with which gold loan can be availed in just a matter of few clicks.

BENEFITS OF ONLINE GOLD LOAN
• Doorstep service
• Highest loan quantum
• Customized tenure
• Competitive interest rates
• Insurance cover offered


Availing a gold loan from ShubhBank is as easy as shopping from online websites. You just have to visit a website ShubhBank.com. Search for the gold loan and apply it. Our executives complete the KYC process at your home and loan money is transferred instantly to your bank account after approval. There is always a threat of cyber theft or fraud but our lending platform is extremely safe and secure. We ensure customer’s personal data should be encrypted and protected against any fraud; therefore, security audits and customized strategies are implemented to safeguard the information. This yellow metal is an investment tool which always offer you good returns and liquidity in the times of financial crunch by opting a gold loan.


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THINGS TO REMEMBER WHILE APPLY FOR GOLD LOAN ONLINE

Posted on Monday May 11th, 2020

A gold loan is a quick way to get a loan and meet your financial needs at low-interest rates. You can opt for this loan to cater to many financial needs like child education, marriage etc. or expanding or investing in your business. Instead of keeping the gold jewelry at home or in a bank locker, you can use it as an asset by taking a loan against gold to meet the financial needs.

What is a gold loan?
Gold loan is a secured loan that is offered by banks against collateral (Gold jewelry and gold coins and any other gold item). The gold is returned to the borrower after the repayment of the loan. Generally, is gold loan is taken for short and medium tenure. Gold loan is preferred over other types of loans as it is easy and the disbursal of loan is very quick.

Eligibility Criteria for Gold loans
Gold loan is famous because the eligibility criteria is very minimal. You do not have to be employed or earning regular income or satisfy any income criteria to avail of this gold loan. The loan amount which will be sanctioned depends on the value of gold. If you are an adult and own gold, then you can get a Loan Against Gold.

The two simple ways to get eligible for loan is as follow: –
1. Your age must be above 22 years.
2. You must own the gold ornaments.


Why to choose the gold loan?
Gold loans are the best choice to get Instant Gold Loan Online. In case if you are unable to repay the gold loan then the bank has the authority to keep the gold with themselves. Here are some tips to get a loan quickly.

• Compare the interest rates: – There are many banks and financial institution which are offering gold loan. So, before choosing the best interest rate you need to search with providers.

• Check the add-on charges: – Like other loans, in gold loan also there is processing fees, documentation charges, notice charge and so on. Therefore, you need to understand this amount.

• Check the quality of ornaments: – Before applying for the loan, you have to check the quality of ornaments also. The gold should be of 22 or 24 carat. Apart from this, the Bank cannot accept other metals which are present in gold jewelry.

• Security of Gold: – You must ensure the safety of gold before providing them as collateral for the loan.

• Don’t Do LTV Calculation: – LTV is said to be advance to Value Ratio, and the creditors use it to express the ratio of the loan to a net worth of the asset. The lender uses this to check the risk involved in this. The lender will calculate the amount on this basis.


Conclusion: –
If you are planning to go for a gold loan, then you need to check all points carefully. To get the best loan rate & guide you can go for Gold loan with Shubhbank