Gold Loan for Commercial Property

Nov 09, 2020

Gold Loan for Commercial Property

Despite an overall moderation in the real estate sector, the commercial segment of the market witnessed a satisfactory performance in FY2019. As per a report published in the Financial Express, commercial realty noted maximum private equity investments, amounting to a staggering $3 billion in the first three quarters of 2019.

The demand for commercial properties overtook that of residential spaces owing to the higher scope of generating returns. For instance, the rental yields from commercial properties are way higher compared to residential ones.

Furthermore, with the easy availability of commercial loans for property from various lending institutions, financing the investment has also become significantly easier. However, before delving further into the availability of finances for commercial property purchase, following is a look at how an individual can successfully get into commercial real estate and generate maximum returns.

Uses of a Commercial Property –

If an individual is looking to invest in a commercial property for capital appreciation, there are several avenues he/she can look into, which can allow maximisation of returns. Following is a look at a few such opportunities –

  • For renting out –

Renting out commercial spaces, no matter their sizes can be extremely lucrative for a property owner. From shops to office spaces, letting out commercial plots can generate high returns, especially if the property location is favourable.

  • To set up a small business

Availing commercial loans for property to set up small businesses like beauty parlours, boutiques, etc. has become fairly common nowadays, owing to the increased demand for such services.

While competition can be high in these fields, individuals can generate substantial returns if they manage to purchase the property at a prime location.

  • For an office space

With start-ups mushrooming around the nation, entrepreneurs can make good use of commercial spaces to venture into their own initiatives. Setting up a functional office is a prerequisite for any business, and investing in a commercial property, albeit small, can help individuals do so easily.

  • For a grocery shop

Setting up a grocery shop, kirana, or even a supermarket can be quite a profitable business venture for budding entrepreneurs.

Apart from these, commercial properties can also be used for a number of other purposes. For instance, a commercial property can be utilised to set up a mall, hotel, community centre, warehouse, and a plethora of other business-related initiatives.

However, while investing in these properties can be quite a lucrative opportunity, the associated cost is sizeable too. Furthermore, auxiliary costs of purchasing a property can also mount up and require substantial capital back-up.

In this regard, a gold commercial loan for shops and other such ventures can help meet the requisite expenses with ease.

Following is a look at the benefits of gold loans that borrowers can avail while investing in a commercial property.

Benefits of Availing a Gold Loan for Commercial Property –

While gold has for long been a popular medium for lending and borrowing in India, the emergence of digital lending companies has allowed citizens to tap into its full potential in the past few years. There are several reasons why gold loans can be considered the most convenient financing option to purchase a commercial property.

Here are a few of them –

  • Nominal interest rates

Owing to the secured nature of this loan, availing it can be much more cost-effective than other unsecured loan options. Since individuals avail the loan by pledging their gold as collateral, they can enjoy competitive interest rates against the amount borrowed.

  • Unrestricted end-use

Purchasing a commercial property comes with numerous associated expenses that can be difficult to bear without comprehensive financial back-up. In this regard, a gold loan can be utilised to not just purchase the property but also to meet expenses like interior fit-outs, registration fee, stamp duty, surcharges, etc. Since the loan is sanctioned against the value of gold pledged, borrowers can easily avail as much as they require and see to such expenses.

  • Hassle-free documentation

To avail this loan, individuals need not undergo an elaborate documentation process. Unlike other types of loans, gold loans do not require borrowers to submit their income or ITR proof, since these advances are sanctioned based solely on the value of the gold pledged.

Furthermore, potential borrowers can even avail this commercial loan for property without any prior credit history.

To add to this list of advantages, individuals can avail this loan from leading lending institutions like Rupeek Fintech Pvt. Ltd. and ensure that they maximise their benefits from the proposition.

Why Should You Avail a Gold Loan for Commercial Property from Rupeek?

Applying for a gold loan from this NBFC not only streamlines the entire process but also offers several perks that can elevate your experience as a borrower. Following is a look at such benefits –

  1. Easy application process

Potential borrowers can easily avail the loan by applying through Rupeek’s website, its official app or by placing a call. In this regard, applying through the app can be extremely handy since it can allow one to initiate the process through their smartphones, anytime they want.

  1. Doorstep loan facilities

One of the most striking features of the loan offered by this NBFC is that borrowers can avail it without leaving the comfort of their homes. After applying for this loan, a loan manager will be appointed who will thereby reach the applicant’s home on the scheduled date for gold valuation and KYC registration. After these formalities are complete, the loan will be sanctioned to the borrower’s account. The entire process takes just 30 minutes to complete.

Also, the loan manager leaves your house with the pledged gold only after your confirmation of loan disbursal to the account.

  1. Highest loan to value

LTV signifies the percentage of the pledged asset’s total value that borrowers can avail as a loan at max. With this NBFC, individuals can avail the maximum commercial loan for shops against their gold, thereby maximising their benefits.

  1. Security of the asset

The gold is collected from the borrower after he/she receives the loan amount in the bank account and is transported in a GPS-traceable bag to be deposited to the nearest partner bank’s vault. The gold remains stored in the vault until the time the borrower can repossess it after complete repayment, thus guaranteeing optimal safety. Not to mention, it is further secured with an insurance policy at no additional cost.

Furthermore, unlike other loans, borrowers only need to repay the interest accrued in due course of the loan tenure, and the rest as a bullet payment at the end of the loan tenure. Additionally, the loan tenure stretches between 3 and 6 months, making it easier to repay the advance within a short while.These benefits can help individuals maximise their profitability from commercial loans for property availed against gold.

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