Payday Loan in Surat

Payday Loan in Surat

Surat, in recent times, has become the leading economic and commercial centre of southern Gujarat, owing to the connectivity afforded by its large seaport. It is one of India's largest urban agglomeration, and according to a study published in the Economic Times, by 2035, it will be one of the fastest-growing cities worldwide. This growth will be bolstered by the progress of Surat's industries, economy, and infrastructure, resulting in a substantial increase in GDP.

This city is renowned as the ‘Diamond City of India’ since it houses several diamond polishing businesses. It also has a stronghold in the IT sector and textile industry with companies like Microsoft CityNext, Tata Consultancy and Wipro starting their new joint project here. It was also the second cleanest city in the country according to the Swachh Survekshan in 2020.

The city has one of India's highest GDPs, backed by a high propensity of consumption among residents. However, at times, salaried individuals are faced with financial emergencies that cannot be resolved, especially due to the lack of cash in hand at the end of a month. In such situations, a number of them turn to payday loan in Surat.

What Are Payday Loans?

These are a type of personal loan that a salaried employee can avail when he/she is in need of urgent funds. They are often referred to as microloans since they are disbursed in limited quantum. Individuals can also treat them as an advance salary Surat as these are availed based on the value of their next paycheck. These loans are mostly available online, and one can apply for them through the lender's mobile application.

The documentation required for these loans is to be submitted through the app itself. While the set of documents required by different lenders may vary, the following are mandatory across all of them.

  • Income proof such as your salary slip.
  • Identity proof such as Driving License, Ration Card, etc.
  • Address proof like PAN card, Voter ID, Aadhaar Card, etc.
  • A letter from the employing organisation.
  • Age proof.

Apart from these, one also needs to fulfil a number of eligibility criteria to avail a payday loan in Surat. Few of these are -

  • One should be an Indian citizen.
  • The borrower must be older than 18 years.
  • They must have an active current account.
  • Should be employed with a regular source of income.
  • Must possess a standard credit history.
  • They should maintain a level of credit score.

These are seemingly advantageous as most lenders do not check whether the borrower can pay the loan back or not. However, that does not mean one's payday loan application will be approved without verification of their income and employment status. Besides, there are several shortcomings of this credit product that are not just disadvantageous but may cause severe problems during repayment.

What Are The Issues With Payday Loans?

There are many aspects of these loans that can lead to problems for the borrower. While some are obvious, the others are not adequately communicated by the lenders. The most severe issues with a payday loan in Surat are,

  • As these are unsecured products, lenders are at a much higher risk, and consequently, charge a high rate of interest. Moreover, lenders charge the interest on a daily basis while the rate frequently fluctuates as well. At certain instances, this rate can go up to 2% per day.
  • The repayment tenure is extremely short, which can put a lot of pressure on the borrower. Its varies from 1 to 3 months, and due to that, many individuals cannot repay it within time. This causes them to get caught up in a debt trap and may take them years to get out.
  • The amount that one can avail from an online payday loan depends on their salary; thus, it is usually nominal, considering the high amount of interest one pays.
  • Not everyone can provide all the documents required, and some are also unable to fulfil their eligibility. These issues may pose to be a hindrance for many while availing these loans.

Apart from these, their accessibility is also a major problem since only a handful of institutions offer these loans. Thus, it would be wise for an individual to look for other alternatives instead of searching ‘payday loan provider near me’.

One such great option for those seeking instant cash loan is a gold-backed financing product. These are secured, offered by trusted lenders and much more accessible than payday loans.

What Is A Gold-Backed Loan?

These loans are pretty self-explanatory as to how they work. Besides, they are readily available because of gold's high market value. Following are some of the most attractive advantages of these loan options -

  1. Utilisation Of Idle Asset

Gold is an idle asset that does not provide any significant profit when sitting in a locker. By pledging them to a lender, you can leverage their equity and substantially lower your rate of interest than a payday loan in Surat.

  1. High Loan Value

Since it is a secured option, individuals can fetch a high percentage of the pledged gold's value as the loan amount.

If you can find the right money lenders in Surat, you can reap variegated benefits from your gold loan. With Rupeek's advantages curated to provide an optimum borrowing experience, you can effectively solve your financial woes with heightened ease.

What Are The Benefits Of Rupeek's Gold Loan?

A gold-backed loan in itself is highly advantageous, but with our facilities, you can maximise your advantages. With Rupeek's gold loan, you get,

  • Considerable Repayment Tenure

Our repayment tenure is shorter when compared to the standard loans provided by banks and NBFCs. The shortest loan tenure we offer is six months which is still more than what one gets for repaying a payday loan in Surat.

  • Overdraft Facility

You can withdraw money from a sanctioned credit limit per your preference and pay interest only on the amount you have used. This is possible if you avail our overdraft facility called Rupeek Quick, which offers an extended credit line.

  • Easy Repayment Methods

You can enjoy the advantage of our flexible repayment schemes such as a single bullet payment or interest pre-payment, etc. while repaying the borrowed amount. You can also stick to standard EMIs, per your comfort.

  • Swift Approval Of Loan Amount

Our credit facility takes around 60 minutes in an average to get approved. This is a quick loan that can help on avail funds instantly. If your salary is yet to be credited, but certain expenses cannot wait that long, this loan is perfect for you.

  • Nominal Rate Of Interest

Secured loans do not pose much risk on the lenders per se, so they charge a comparatively less interest rate from the borrower. We have further decreased the percentage to as less as 0.49% per month. This reduction will minimise the repayment liability on our customers.

We have several partner banks and operating locations in Surat, and we provide a lot more than just the benefits mentioned above.

Where to Find Us in Surat?

If you live in any of the following locations, our representative can visit your home when you apply for our gold-backed payday loan in Surat. We provide doorstep loan service to ensure your utmost comfort and convenience. The entire procedure is carried out at your preferred location, and our representatives only leave after the amount has been credited to your account. The areas we currently operate in include -

  • Sachin
  • Udhana - Magdalla Road
  • Dumas
  • Hajira
  • Olpad
  • Adajan
  • Piplod
  • Mota Varachha
  • Pal
  • Amroli
  • Umarwada
  • New Textile Market
  • Katargam
  • Dumas Road

While a payday loan in Surat has its benefits, it is better to steer clear of this particular financing option. Due to its frequency of charging interest and short repayment tenure, it can cause many issues for the borrower. Alternatively, apply for Rupeek's gold loan - both reliable and equipped with numerous facilities.

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Benefits of Gold Loan over Payday Loan.
  • <1 lakh
  • 2 lakh
  • 3 lakh
  • 5 lakh
  • 10 lakh
  • 20 lakh
Comparision Parameters Payday Loan Gold Loan
Interest Rate 2.39% 0.49%
Monthly Interest Amount
Eligibility & Documentation More Documents Needed Only KYC Needed
Processing Time & Disbursement 2 days to 1 week Within a day
Required Gold Weight -
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Frequently asked questions

  1. Does Rupeek offer refinancing options?

Yes, if you are already in the middle of repaying a gold loan but our low interest rate and other facilities have caught your interest, you can still avail them. We encourage borrowers to avail a loan transfer from their existing lender to Rupeek. By doing so, borrowers can save up to Rs. 12,377/ lakh and decrease their liabilities.

  1. What kind of gold items does Rupeek accept?

At present, we only accept gold jewellery and anything other than that will not be considered a pledged item.

  1. What are the documents required for a Rupeek gold loan?

One only needs to provide his/her KYC documents to avail a loan from us.

  1. What is the loan amount range offered by Rupeek?

By applying for our gold loan, one can avail a quantum of Rs. 15,000 to Rs. 1.5 Crores, depending on the value of the gold they provide.

  1. What is a debt trap in a payday loan in Surat?

A debt trap is created when there is a massive gap between an individual's repayment responsibilities and financial capacity. As most lenders do not check this capacity before providing a payday loan, borrowers often fail to realise their own limitations. Consequently, a majority often have to avail a new loan to pay off the old one and get caught into a vicious loop.

  1. What are the eligibility criteria for a Rupeek loan?

You only have to be at least 18-year-old or above to avail a gold loan from us.

  1. Is availing a payday loan a wrong decision?

Yes, it is a wrong decision as one has to pay a lot of interest for a very nominal loan amount. Moreover, repaying them diligently will not improve your CIBIL score, but not repaying it on time can reduce it.

  1. Does Rupeek provide insurance on the gold we pledge to them?

We offer 100% insurance on the gold you pledge to us.

  1. Can I repay my Rupeek loan in part-payments?

Yes, you can make part-payments to repay you Rupeek gold loan. However, the amount should be less than the total principal and more than a single EMI.

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