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HOW GOLD LOAN PROVES TO BE BEST FOR FINANCIAL NEEDS?

Posted on Monday January 18th, 2021

Nowadays, there are several types of loans available for everyone who’s in need. The most popular ones are home loan, personal loan, business loan, loan against property, gold loan etc. the traditional lenders and NBFCs are eager to provide the loan against a precious metal because most of the countrymen posses gold in form of jewelry and ornaments as they see a good amount of capital appreciation over the time. A gold loan provides you instant cash for most of your immediate expenses such as medical emergency, debt consolidation etc. Here is the list of some benefits of taking a Gold Loan to fulfill your requirement.

♦ Quick processing: Once you submit the yellow metal to the lender, it evaluates it according to the market price and credits the loan money to your bank account. The gold is kept as collateral with the lender until the loan gets repaid. The evaluation of gold is conducted on the spot, hence cutting down the processing and disbursal time.

♦ Fulfill your financial goals: The repayment period of the loan can be extended from 6 months to 2 years that means you can close this loan sooner as compared to other loans. Therefore, it can fulfill your short-term financial goals and needs. For long-term goals, you can opt other kind of loan that can suit you the best.

♦ You can borrow as per need: Generally, other kinds of loan like personal loan and business loan are not offered if the amount needed is lower than a lakh but in case of gold loan, you can borrow anywhere between thousands to few lakhs. Thus, this asset can provide both small and huge financial needs.

♦ Loan money for any purpose: Many of the individuals Apply For Gold Loan to fund medical emergencies, business needs, wedding expenses etc. Therefore, there is no obligation on the end purpose of the borrowed money. You can use the loan amount for an essential purchase, home improvements or just about anything as long as the usage is legit and not illegal.

♦ Minimal documentation only: All other loans mandate the lender to check on your income, tax returns and CIBIL score but in case of gold loan, you just have to provide your identity proof, address proof, passport sized photographs along with your gold ornaments.

♦ Lower interest rate: Most of the lenders charge a very low interest rate as they keep you gold jewelry as collateral in hand, as a result, lenders do not have to worry about recovering the loan repayment in case of default. Some of the lenders can offer interest rate as low as 10.5% as compared to other unsecured loans.

A gold loan is one of the most reasonable credit facilities that you can use for immediate financial requirements. Since gold jewelry and ornaments always appreciate in value and also helps lenders to trust the borrower and provide them a loan against gold. You can apply for the loan against gold at our website ShubhBank.com and get your disbursal the same day.


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WHY GOLD LOAN DEMAND INCREASED POST LOCKDOWN?

Posted on Thursday November 5th, 2020

The income of most of the middle class families had squeezed due to job loss, pay cuts and undefined income resources with the closing of business amid Coronavirus pandemic lockdown, more and more individuals are opting for gold loan. Some people need cash to run their monthly expenses while others have to pay the bill. People are not applying or moratorium as it will end up in loan burden with the accumulated interest. Those who needed money for their survival are mortgaging their gold to arrange funds in shortest possible time. Now the lockdown has uplifted, people are searching for the lenders for gold loan to get cash in hand. There are some factors which have increased the demand of Loan Against Gold.

Lower rate of interest: It is much cheaper to secure a gold loan than borrowing a personal loan and credit cards which costs huge and results in debt trap if not managed properly because the interest rate on personal loan and credit card ranges from 12 to 16% and from 15 to 30% per annum respectively. If the borrower is not able to repay the loan, it will end up in huge accumulated interest, stress and lastly, it can end up borrowing again to pay back the existing loan.

Surging of the gold price: Gold loans are easily available and comparatively cheaper and you can secure the funds in short time. Apart from such benefits, the huge surge in gold prices which make it more attractive and affordable. The domesticated gold prices have kept on rising sharply in last couple of months. The soaring prices in lockdown have unlocked huge value for gold mortgages for potential loan seekers who are looking for funds and since prices of gold at are at peak mortgaging their yellow metal which can get them the best of the price.

Increased LTV ratio: The gold loan lenders surged after RBI decided to ascend the permissible loan to value ratio (LTV) for loans against gold to 85% from 75%. This aspect of gold loan has made it favorable for individuals who are financially hit by COVID-19 pandemic and are looking for liquid funds to meet their requirements.

Instant processing: When you Apply For Gold Loan lenders evaluate it and credit the loan amount into your account and hold your metal until you repay it back. Nowadays lenders disburse the loan in few hours after you get approved for it and some of them have eliminated processing fees too.

Now when lockdown has been lifted, the gold loan sector is expecting an increase in demand for loans against gold as majority of middle class families are looking for liquid funds and working capital to push their businesses to normal which are hit by the corona virus pandemic crisis lockdown. Therefore, get in touch with ShubhBank for quick and hassle-free ways of getting a gold loan. Your gold will remain at secure place with lender throughout the tenure and you get it back, once you repay it back to the lender.


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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.


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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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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.