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WHY GOLD LOAN IS BEST OPTION FOR LOW CREDIT BORROWERS?

Posted on Monday July 25th, 2022

Nowadays, individuals looking for required funding have a lot of options offered by the lending sector and the best option among all credit solutions are Gold Loan especially for the loan seekers who have low credit score. There are number of people who suffer financial crunch and Apply For Gold Loan as it has speedy disbursement and flexible repayment structure.

A loan against gold is a secured loan that demands you to keep your gold ornaments and jewelry as collateral to the lender to access desired funds. It proves to be viable choice for low credit borrowers with short term cash needs.

The loan money can be used to fund any financial crunch and it is convenient because of its characteristics which are mentioned below:

High loan quantum: As compared to other secured and unsecured loan solutions, gold loan has a higher loan amount cap. The loan money directly based upon the quantity and purity of the gold that you are going to pledge with specific lender. This loan is the good option if someone requires a more considerable borrowing. One will get the 70-80% of the gold value as a loan amount.

No need of credit history: In case of gold loan, one needs not to be concerned about their credit history because lenders never consider your credit report while approving your loan application. The best thing about gold loan is that you are not obliged to disclose any existing loan before applying for loan against gold ornaments.

Low rate of interest: The gold loan has a lower rate of interest as compared to other secured loans such as Home Loan, Loan against Property and Machinery Loan etc.; therefore loan against gold is less expensive than other types of secured loan solutions. It means you will be required to repay the loan money with less money from your monthly budget without burning a hole in your pocket.

Flexible repayment structure: This is the best feature of gold loan because unlike other loans, gold loan can be availed with various loan repayment options. There are basically three types of repayment choices such as regular EMIs, you can pay only interest during the loan tenure and principal amount at the end or you can pay the interest as well as principal amount after the tenure with no repayments made in meantime.

Hence, it is an attractive option and one can Apply For Gold Loan Online or offline by leveraging their possession to receive desired cash in an emergency situation. ShubhBank is one of the leading NBFCs across country that provides gold loan with lowest and effective rate of interest. We provide you the flexible repayment options from which you can choose the best suitable for you.

One needs to submit their basic details and gold ornaments to the lender to get immediate funds which they can use for their personal and professional needs. We are there to support our customers in the direction of growth and to provide all the loan services at their doorstep valuing their time and money.


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HOW TO REPAY GOLD LOAN IN EASIEST WAYS?

Posted on Wednesday June 29th, 2022

Nowadays, gold proves to be a great asset to acquire funds in the times of cash crunch. Most of the lending institutions offer gold loan with flexibility in terms of repayment. One can choose to repay in part payments or EMIs, bullet payments depending upon your needs and budget. Before you Apply For Gold Loan you must need to understand all the repayment schemes.

There are some repayment ways associated with gold loan that would prove to be a key for comfortable loan journey in a fixed tenure. Here, we have listed all those repayment methods in detail:

Equated monthly installments: EMIs or monthly installments are the most common method of paying back any type of loan. The repayment of loan against gold can also be done by opting for EMIs. If you have a regular income source then it is the most suitable method to repay a loan.

One can use an EMI calculator to calculate the exact amount of installment according to their monthly inflow of funds. The principal amount and interest rate payment as EMI would start right after the disbursal of loan money. Calculating your EMI prior to applying will help you in understanding of your loan cost and help you to manage your expenses.

Monthly interest payment: This method is similar to EMI method but with a little difference. In this case, you only have to pay the interest accrued on the loan quantum each month. You have to pay the entire principal amount at the end of the loan tenure. This method is suitable for the borrowers who have low income or do not have regular source of income.

Bullet payments: It is meant to be onetime payment where lender would charge monthly interest on the loan amount but the payment for both would be due at the end of the repayment period.

Bullet repayment would be a best method for short-term gold loans ranging between 6-12 months. However, it is a great option but one has to pay more money in form of interest rate at the end of loan tenure. As it is an expensive way to repay gold loan but suitable for those borrowers who cannot afford monthly installments and have an unstable source of income.

Partial payments: It is another popular way for gold loan repayment. A partial payment meant for making lump-sum payments for loan when you are able to do so. This is the great and easy method for individuals who are unable to pay monthly installments.

One can customize the amount to be repaid depending upon repayment capacity. It can save you a lot of bucks by making larger payments at the initial stage of loan tenure as it will reduce your interest burden.

Foreclosure: It stands for repaying the entire loan amount before the tenure ends. The repayments can also be made by making pre-closure payments. if you pay the full amount during your tenure, you can pay off your gold loan conveniently and take your pledged ornaments to your home instantly.

Therefore, before you Apply For Gold Loan Online or offline, choose the best way of gold loan repayment and enjoy a hassle-free loan journey.


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HOW TO MAKE A CHOICE BETWEEN PERSONAL AND GOLD LOAN?

Posted on Friday April 29th, 2022

Nowadays, it is becoming tough to sustain and maintain the cost of livings because of ongoing pandemic along with a trail of economic downfall as well as devastation. However, financial crunches and emergencies can knock your door anytime but it’s up to you that how to cope up such situations? One can either Apply For Gold Loan or a Personal Loan.

These two loans are most popular among borrowers due to faster processing and they never restrict the end user to use their loan money to fulfill the purpose. Now the question arises- which one is better option among both loans? To know this, we have mentioned few factors which help you to compare both the loans. It will give you better understanding of both the loans to decide which loan suits best to your financial situation.

Loan Size: As Personal Loan is an unsecured loan so the loan money ranges between 50 thousands to 15 lakhs. Some of the lenders can even offer a higher amount depending upon your creditworthiness and repayment capacity.

Gold Loan is secured type of loan and the loan quantum purely depends upon the gold amount that you will pledge as security. A lender can provide maximum of 75% of your gold’s value. Therefore, if your gold value is more, you can secure higher loan amount.

Tenure: The loan tenure given for Personal Loan is 1-5 years but few lending institutions will provide the longest tenure of 8 years. If you have low income then opting a longer tenure with smaller EMIs is a better solution.

Gold loans can be offered for tenure of few months to 5 years but it can be best option if one can afford a higher EMI payment for a shorter tenure.

Repayment: Personal Loan can be repaid in monthly installments which will be a mix of payable interest and principal amount. This is the only option which you must follow whereas Gold Loan can be repaid in different modes such as bullet repayment, monthly installments and upfront interest method, so you can any of one that suits your pocket.

Processing Fees: The charges for processing a Personal Loan can be 2-3% of the entire loan amount which is standard and mandatory but when you Apply For Gold Loan Online or offline, the lender may charge processing fees up to 1-2% of the total loan amount. These charges are much lower than the charges on Personal Loan.

To reiterate, one can make choice between Gold Loan and Personal Loan depending upon their need, credit score as well as repayment capability. Personal Loans can be ideal choice for the borrowers who are looking for a higher loan quantum where as Gold Loan can be best for the customers who wish to opt flexible repayment options and also have a bad credit score.

If you are also planning to apply for Best Gold Loan, then you can visit ShubhBank or apply online at our website to enjoy stress free loan journey at lowest possible interest rate.


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HOW GOLD LOAN CAN KICK AN ECONOMIC DISTRESS?

Posted on Friday January 28th, 2022

In the times of Coronavirus Pandemic, the lives of common people have once hit hard as this outbreak deepens. Some of the small scale industries are either on the verge of shutting down or have been shut down whereas a huge portion of working individuals lost their source of earnings. In this time period, the demand for loans has risen. In our nation, every household has some quantity of precious metal which gives them the power to avail a gold loan to revive their source of income.

Gold loan is one of the most convenient options to get funds in pandemic. One can Apply For Gold Loan by choosing a suitable lender with their gold assets, get them evaluated and can access the needed funds. A borrower can secure up to 75% of gold market value as loan money. There are number of gold loan lenders who provide online or in-house evaluation of the gold.

Meanwhile, if you can’t afford any unsecured type of loan such as Personal Loan that demands strict eligibility criteria as well as good credit score, you can easily opt out the option of Gold loan as it doesn’t require any income proof or any credit history. Therefore, in this article, we have mentioned some of the parameters for which the gold loan demand has been risen up in today’s scenario:

Multi-purpose use: It is one of the good parts of this loan as there is no restriction on the usage of loan money. One can use these funds for personal or professional requirement and can get rid of any financial crunch.

Low rates of interest: As gold loan can be accessed easily because it is also offered at low rates of interest in lending market. The usual rate of interest for a gold loan stands at an average of 7.30% to 9% per annum.

Flexible loan quantum: It is one of the great benefits of this loan either you visit any specific lender physically or Apply For Gold Loan Online it always offers flexibility in principal amount offered by the lending institutes. One can secure a loan against gold for needful loan money depending upon your requirement and availability of the gold that you have to pledge he lender.

Less paperwork: One doesn’t require any salary proof or credit report to apply a gold loan, thus saving your time and making your loan experience more relaxed, you can get a loan with basic documents such as domicile certificate and identity proof. Every lending institution just verifies the purity of your precious metal that you are going to pledge for the loan.

Flexible repayment: In gold loan, you are free to choose a flexible repayment mode. One can choose a bullet repayment scheme or regular EMI option to repay the loan during the tenure.

Hence, knowing these attractive features and advantages of gold loan, it would not be wrong to say that demand for gold loan will elevate in coming days as it is most convenient and easy option to let down any financial burden.


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WHAT GOLD LOAN BASICS TO FOLLOW BEFORE PLEDGING GOLD?

Posted on Thursday September 30th, 2021

Nowadays gold prices have rocketed to 50,000 for every 10 grams which is known to be highest price ever in the country. Undoubtedly, gold is quite desirable among Indians in various aspects such as for weddings, savings, and investments or for many more reasons.

As a whole nation is suffering from pandemic, it is difficult for everyone in this falling economy to survive. If there is a medical emergency and expenses can go up to several lakhs or to cover up any loss in the business, you can Apply For Gold Loan to fulfill your needs. In this article, we have mentioned a list of FAQs with answers to make you understand better about loan basics.

Which jewelry can you pledge?
If you are planning to opt for a gold loan, you can pledge any of your gold ornaments and your loan quantum will be decided on the basis of purity of your gold. However, gold bars or coins will not be accepted by any lending institution.

How one can avail a gold loan?
To avail a gold loan, you just have to get in touch with selected lender either online or offline. Once the lenders assess the purity of your gold, they will evaluate the loan money that should be approved for you. The loan money cannot be more than 75% of the market price of gold as per RBI guidelines.

Is your gold safe with lender?
There is always a risk factor when you apply for any secured loan as you have to pledge an asset to the lender. Therefore, be aware of all the terms and conditions proposed by the lender. You can also apply for a gold loan via ShubhBank where you don’t need to worry about the safety of your gold.

What paperwork you need for gold loan?
A gold loan requires a minimal documentation which may include your recent passport sized photographs, ID proof and residence proof. The individuals, who don’t possess a PAN card, can submit a Form60.

How much time it takes to get a gold loan?
Either you Apply For Gold Loan Online or offline, it is the fastest loan solution to get approved. If you have all documents in hand, you will get the loan quantum disbursed in your bank account within few working hours.

What are the charges on gold loan?
The charges involve processing fee, repayment charges as well as evaluation fees. While applying a loan against gold through ShubhBank, one can unlock the best deals ever at the lowest possible rate of interest.

What if you don’t repay a gold loan?
If you are unable to repay the loan money in any case, you should know that lender has every right to auction your pledged gold to recover the outstanding dues of your loan.

Hence, if you want to apply for a best and cheap Gold Loan in India, visit ShubhBank or click on our website and we will always be there to help you to fulfill your financial needs.