The sizable reserves of gold in Indian households and simple process of pledging the same to raise funds has made India a prime location for a booming gold loan industry. The sector has seen continuous growth in the past decade with a CAGR crossing 30% between 2010 and 2019, according to Money Control. Another projection by Business Line suggests that the gold loan market would reach a value of around Rs. 4,617 billion by 2022.
Apart from serving as an alternative to personal loans, gold loans for business have also experienced immense popularity in recent times. Entrepreneurs are increasingly turning to such financing options instead of approaching banks for unsecured business-related credit. The numerous unique features and benefits of gold loans are the driving force for this growing preference for the funding option.
Listed below are some of the benefits of pledging your gold ornaments to fund your various business needs.
Gold Loans for Businesses – Benefits that Stand Out
- Fast approval and disbursal
During financial emergencies involving a business, owners rarely have the time to undergo a lengthy loan application and approval procedure. Nevertheless, most banks and NBFCs lay down several formalities that extend this process. Fortunately, gold loans from Rupeek Fintech Private Limited are much easier to avail.
After filling an online application, a loan manager from the company visits your home to assess the value and purity of the pledged jewellery. Post the valuation of gold and submission of the KYC documents, applicants receive immediate approval. Moreover, the principal amount is disbursed to a borrower’s account within 30 minutes of approval. There’s hardly any other loan facility that comes with faster approvals and disbursal.
- Facility to check loan eligibility online
Gold loan providers generally offer an online calculator to help a prospective borrower assess the loan amount based on the purity and weight of pledged jewellery. One can calculate the maximum loan amount by entering the weight (in grams) of the gold to be pledged and its purity (between 18 carats and 22 carats). Nevertheless, an individual performing these calculations using an online tool needs to keep certain factors in mind.
- Most lenders refuse to acknowledge gold jewellery with purity lower than 18 carats as a pledge against the gold loan.
- The weight you enter in this calculator must be the exact weight of gold, excluding any other impurities, stones or other gems, which may be part of the ornament.
- Lastly, the price of gold tends to vary from one day to the next. Such online calculators use the value of gold on a specific day to calculate the gold loan amount you will be eligible for on that day.
Therefore, opting for gold loans for business means that you can determine the estimated loan amount against your gold to be pledged beforehand. Such pre-approved loans can help a business plan its expenses accordingly, even before availing the said credit.
Rupeek Fintech Pvt. Ltd. is one of best gold loan providers in India and provides a hassle-free doorstep gold loan service. Rupeek also gives the highest Loan-to-Value (LTV) and lowest interest rates in the market due to their online business model. You can evaluate your loan amount with Rupeek’s gold loan calculator.
- Streamlined documentation process
To avail a conventional business loan, one has to go through several formalities, including an extensive documentation process. Banks can ask you to submit business documents, personal identification papers and multiple other documents like IT proof, income proofs, etc. before you can apply for such a loan. Arranging all of these documents can be too hectic, especially for business operators already juggling a stressful schedule.
In stark contrast, gold loans are available with minimal documentation. For instance, an individual can seek a gold loan by simply submitting his/her KYC documents.
- Effective credit option for individuals with poor credit rating
Gold loan lenders do not consider your credit rating when approving loan applications. It means that even if you have a low CIBIL score due to past repayment troubles, you can still avail gold loans. Typical business loans, on the other hand, limit approval to applicants with credit score higher than 650.
Since gold loans are secured by the gold that borrowers pledge, the risk for lenders is significantly low. Lenders thus do not hesitate to extend high-value funds as gold loans without needing to check an applicant’s creditworthiness.
- Loans available at your doorsteps
Rupeek Fintech Private Limited follows a unique and hassle-free gold loan disbursal process where applicants do not need to leave their homes for the funding. Instead, upon application online, the lender sends a loan manager to your house.
Such a manager will check your gold items, evaluating their value and weight right in front of you. Based on the results, a proportionate sum is disbursed almost instantly to your account, within 30 minutes. To ensure greater credibility and encourage trust, the Rupeek loan manager only leaves your home with the pledged gold after you receive the loan principal in your bank account. Therefore, all your business’s funding needs can be fulfilled while you stay at home.
- Complete security for gold jewellery and ornaments
In India, gold jewellery is a prized possession, not only because of its monetary command but also for its aesthetic and heritage value. Some of these ornaments are inherited and are considered family heirlooms. Therefore, a primary concern for most loan applicants is the safety and security for the pledged items.
You can rest easy knowing that Rupeek follows a strict protocol to ensure complete safety for your valuable jewellery. After leaving your home, loan managers transport the pledged gold ornaments in a GPS-trackable bag and directly drop it off in the secure vault of at the closest partner bank branch.
To ensure further safety, Rupeek offers insurance for your pledged gold as well. This insurance remains in effect until you repay the loan and recover the items.
- High loan-to-value (LTV)
Loan to value is also the highest on offer from this Bengaluru-based lender when it comes to gold loans. Therefore, if you are seeking gold loans for business, it is an ideal option to consider. Depending on the purity and weight of gold an individual owns, this credit facility can lend a significant boost to a business’s overall funding, thereby ensuring sufficient cash flow.
- Credit line facility
Gold loan provider Rupeek Fintech Private Limited also makes borrowing convenient with its credit line facility in the form of Rupeek Quick. It proves as a suitable facility for business owners who require funds frequently to address their diverse financing needs. This feature allows you to make frequent withdrawals from a pre-sanctioned limit.
Also, you need to pay interest only on the funds you withdraw from your sanctioned gold loan amount. You can thus utilise this credit line facility to make frequent, last-minute withdrawals during emergency funding needs.
- Several repayment options
Instead of following a one-size-fits-all approach, Rupeek offers immense flexibility to consumers when it comes to repayment. One can choose to service the loan through regular EMIs or repay the entire sum at once at the end of the loan tenure via the bullet payment option.
Similarly, an individual can also choose to bear only the interest repayment during loan tenure, thereby deferring the entire principal payment to the end of the loan term.
Other beneficial features include tenure flexibility and shorter terms along with nil pre-closure charges unlike other loans, all of which can significantly reduce your credit repayment burden.
Now that you know how easily accessible the advance is, give your business a boost just by utilising the idle equity in your gold asset and raising finance with Rupeek gold loans..