Gold loans for businesses have experienced popularity in recent years. Startups are increasingly turning this financing options instead of approaching banks for unsecured business-related credit. The unique features and benefits of gold loans are the main reason for the growing preference for the funding option.
Gold Loans for Businesses
- Fast approval
During financial emergencies involving a business, owners don’t have the time to undergo a long loan application and approval procedure. Banks and NBFCs lay down various formalities that extend this process.
After filling an online application, a loan manager from the company will visit your home to assess the value and purity of jewelry. With the valuation of gold and submission of documents, applicants receive immediate approval. The principal amount is paid out to a borrower’s account within 30 minutes of approval. There’s hardly any other loan facility that comes with faster approvals and disbursals.
- Facility to check loan eligibility online
Gold loan providers generally offer an online Gold Loan EMI Calculator to help a prospective borrower assess the loan amount based on the purity and weight of pledged jewelry. One can calculate the loan amount by just entering the weight (in grams) of the gold to be pledged and its purity (between 18 carats and 22 carats). If an individual performing these calculations using an online tool, he needs to keep certain factors in mind.
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Most lenders refuse to acknowledge gold jewelry with purity lower than 18 carats as a pledge against the gold loan.
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The weight you enter in the calculator should be the exact weight of gold, excluding any other impurities, stones that may be part of the ornament.
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Lastly, the price of gold tends to vary from one day to another. 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.
Opting for gold loans for business means that one can determine the loan amount against your gold to be pledged beforehand. Such pre-approved loans help’s a business expense accordingly.
To avail of a business loan, one has to go through several formalities, including an extensive documentation process. Banks can ask you to submit various business documents, personal identification papers, and multiple other documents like income proofs, etc. before you can apply for such a loan. Arranging all of these documents can be too stressful, especially for business operators already juggling a stressful schedule. Gold loans are available with minimal documentation. For instance, an individual can apply for a gold loan by just submitting his/her KYC documents.
