What is No Credit Check Equipment Financing

Jul 27, 2020

What is No Credit Check Equipment Financing

The Indian economy relies heavily on her dynamic and vibrant manufacturing and service industry. These organisations play a crucial role in India’s industrialisation endeavor, while providing employment to a large section of the nation’s workforce.

Small and medium scale service industries also play a crucial role in increasing India’s GDP, export, lowering import and foreign reliance. With the introduction of several technology-oriented industries and better availability of resources, these sectors have been able to improve quality as well as productivity by a substantial margin.

Well, the availability of credit had a significant role to play in this progress.

Such tremendous growth was possible only after the means of financing became available to companies across India. Easy equipment financing played a key role; the manufacturing and service industry requires a steady stream of monetary support to allow new organisations to form as well as to allow existing ones to grow.

Equipment Financing – What are the Options?

Securing adequate equipment financing for new and growing companies can prove to be a challenge. Banks and similar financial institutions may require meeting a stringent set of eligibility criteria, failing which the application is likely to be denied.

Fortunately, you can opt for no credit check heavy equipment financing with ease via gold loans.

These forms of advances allow you to pledge assets made in gold like jewellery as a security against the disbursed sum, ensuring the loan is approved without any hassle. Moreover, with the introduction of digital lending platforms, such forms of credits have become significantly more accessible.

Rupeek Fintech Pvt. Ltd. offers gold loans against an affordable rate of interest and borrower-friendly repayment terms. These credits are sanctioned without emphasising too much on eligibility criteria, making the credit facility available to a significantly larger section of potential borrowers.

How does No Credit Check Equipment Financing Work?

Unlike conventional short-term credit, this type of business loan is secured against gold as collateral. It allows lenders to offer easy equipment financing without looking for set eligibility criteria.

The loan amount is determined based on the total value of gold mortgaged by a borrower, eliminating the need to conduct a credit check to determine an applicant’s repayment capacity. It also makes the transactions much more organised, guided by a set of clear guidelines.

Why Avail Equipment Financing?

The funds acquired from these types of credit come without any end-use restrictions, allowing you to utilise the sum for various types of requirements. You can use the money to fund your start-up, as well as to expand your already existing business. No credit check heavy equipment financing can prove extremely beneficial for such scenarios.

Wonder why? There are several reasons; let’s take a look.

  • No credit score required – 

A healthy CIBIL score requires a long credit history, without any record of late or default payments. However, it may prove difficult for new business owners to attain such a credit rating.

Despite that, many financial institutions do not approve loan applications unless applicants meet the pre-determined credit score limit. Contrarily, a gold business loan can be availed even with bad credit, making it significantly more accessible to prospective borrowers.

  • Only minimum documentation –

Document verification is probably one of the most time-consuming steps involved in the process of loan application. Fortunately, easy equipment financing requires submitting only the minimum documents which are processed and verified almost instantly.

Rupeek requires only your KYC documents to process and disburse a gold loan. Submitting identity proofs like Aadhaar Card, PAN, Voter ID, Passport, etc. along with proof of local address like driving license, utility bills, lease agreement or the likes suffices the documentation requirement. Even Income Tax Return is not required to process and disburse the credit.

  • Quick and hassle-free application process – 

Once you apply for the credit and complete the initial call, you will be able to schedule a loan manager to your home to proceed with the documentation process. KYC formalities, along with gold appraisals are done by uploading the documents and evaluating the gold’s value.

Once it is done, the loan manager will generate new pledge card, and the loan amount will be disbursed to your account as soon as it is completed.

  • Flexible repayment options –

As a customer, you can opt to make interest payments on the principal amount every month, and make a closure payment to release all pledged asset. You can also opt to make part payments, which include both the interest and principal component.

The flexible repayment options ensure you don’t face any financial strain or pay the penalty during loan tenor.

  • Loan overdraft facility –

Easy equipment financing also comes with an overdraft facility, allowing you to borrow only the necessary amount, whenever required. Overdraft facility also helps reduce the interest burden; you pay interest only on the fund utilised and for the duration of repayment.

An overdraft facility can prove greatly beneficial for business owners, as they require a steady stream of finance to pay for overheads as well as to fund expansions. With gold loan overdraft facility, you can pledge the asset to create a line of credit, following which you can withdraw the necessary amount, within the allocated credit limit, using the Android App as well.

  • Safe and assured financing –

Every gold jewellery pledged is kept in bank-grade security by Rupeek Fintech Pvt. Ltd., further bolstered by 24/7 surveillance. Also, every ornament is insured as well to prevent chances of loss incurred from theft or accident while transporting.

With the help of no credit check heavy equipment financing, you can now fund all your business requirements at minimum hassle. The added benefits allow you to fully utilise the borrowed amount without worrying about repayment or debt accumulation.