Gold is a precious commodity held by most of the Indians as a valuable asset in the form of jewelry and bars as it can be utilized to avail funds to support emergency cash requirements. Among many financial institutions, ShubhBank has identified the emerging financial needs of clients and to support their livelihood in view of the current turmoil of COVID-19 outbreak. We have set up a gold loan at ShubhBank, a product backed by gold jewelry as collateral in order to address the needs of people and to provide them hassle free credit. In recent times, traders and businessmen will seek a gold loan to resume business operations amid lockdown as the loan money is mostly used by small enterprises as short-term working capital.
The gold loan provides required funds for most of the small scale industries as they have not received any payments during the lockdown. Hence, they will need money and most likely to pledge gold for loans. Due to some relaxation in lockdown guidelines, ShubhBank being located outside COVID-19 hotspots have started functioning and witnessing the demand of “Online Gold Loan“ at higher level in Northern India. However some customers are choosing to sell the metal to take advantage of unprecedented prices but demand for gold loans may rise in the lockdown as the risk profile of borrowers deteriorate. A gold loan from ShubhBank is uniquely positioned to capitalize on COVID lockdown demand especially for small business clients as many families have seen either a slowdown in cash flow or loss in business. This loan is most feasible and least risky choice to raise funds to keep the production unit and household ticking.
Our bank can provide quick finance to customers against pledged gold and quantum of loan can be sanctioned depending upon the factors such as purity of gold, tenure etc. The loan quantum also depends upon the form of gold either bars or jewelry and the repayment capacity of applicant. Coins and bars generally offer higher LTV ratio as compared to gold ornaments. When you “Apply For Gold Loan“ your metal is evaluated and after valuation, 70-80% of the value of gold is offered to you along with applicable rate of interest. You can apply the loan online or by visiting our branch. You have to provide PAN, recent passport sized photographs, identity proof and address proof with loan application. A loan processing fee will be charged on it. In case, you default on loan, the lender has right to sell your gold to recover the dues as per the terms of loan agreement. Some useful points to be noted while you avail a gold loan are given below:
• Loan against gold at ShubhBank can be disbursed as quickly within 1-2 working days.
• This loan typically has tenure of 12-18 months depending upon loan money.
• Gold deposited by the borrower is kept in the safety vault in locker room of bank.
• When the loan is repaid, your valuable asset is returned to you in the same state as it was received.