Start your SME with Gold Loan from SahiBandhu
Having a solid financial backbone can turn a revolutionary idea into a reality. For a business to succeed, finance is not only essential, but also an absolute necessity.
In the Indian financial market, gold loans have become one of the most popular loan products. Due to their flexible repayment options and no restrictions on end-users, these loans are in high demand. Continue reading to learn more about how to effectively fund your company using a gold loan.
How SahiBandhu Gold Loan Are the Best Option For SME
Start-ups could need a lot of money to get their businesses up and running. To meet these requirements, an entrepreneur can avail a gold loan. Here are the benefits of taking a loan against gold for effective start-up financing:
- Immediate Funds: A loan against gold is the quickest loan that is designed to offer immediate funds to the borrower. The application process is entirely digital and requires filling out a simple application form and completing KYC. Once you submit the form, reputed lenders take less than 30 minutes to disburse the loan amount into your bank account.
- No Credit Score: It becomes challenging for entrepreneurs with no prior financial history or a good credit score, to secure other types of loans. However, unlike other loans, gold loans do not require credit or a CIBIL score to be eligible for a loan against gold. All they need is physical gold to complete the process of the gold pledge.
- More Control: If not for loan products like loans against gold, entrepreneurs might have to sell a stake in their start-up to other investors to raise funds. This path forces them to lose a part of their start-ups, resulting in lesser control over the business operations. A loan against gold allows them to raise adequate funding without giving up control of their business to external investors.
- Regular Cash Flow: A positive cash flow is one of the most vital aspects of ensuring business sustainability. Negative economic factors such as inflation or recession can force a business to have inadequate funds to meet expenses. Utilizing a loan against gold helps such entrepreneurs have a regular cash flow to pay for such costs and ensure the business’s survival.
- No External Collateral: Unlike other types of loans which require you to pledge an asset such as real estate, gold loans need only gold to secure the loan amount. Since the physical gold is already dormant in bank lockers, entrepreneurs can utilize the gold to fulfill the start-up’s capital requirement without pledging an external asset as collateral.
- Nominal Interest Rates: Gold loans have attractive and affordable interest rates. They do not include unnecessary or hidden costs. The nominal interest rates on a gold loan ensure that the borrower can pay the amount without creating a future financial burden.
Who is eligible for SahiBandhu SME Gold Loan?
People with an Indian citizenship or residence between the ages of 18 and 70 and who owns at least a single piece of jewellery with a minimum of 15 grams can get a gold loan. The purity of gold is required between 18 to 22 carats. But ornaments that have gems and stones in their designs will not be considered to decide the loan value.
How to prevent a start-up from getting into a loss?
Without a financial foundation, more than 70% of start-ups fail. Entrepreneurs who are struggling to meet their goals or who need extra funds may benefit from considering a gold loan as an option or an additional source of funding. Gold Loan is something that can provide a major boost to your start-up. It can also provide you with extra money that is critical for your business. You can turn an emergency loan into an investment by adding collateral to it.
You can use your asset by taking a loan against gold. The gold that is idle in your home can help you fulfill your dream.
- You will need a strong business plan
- An unsecured loan poses a problem for start-ups. Interest rates are high, and terms and conditions are extensive.
- Lack of funds and other financial constraints will slow the expansion of your business.
- Emergency funds to meet the deadlines.
The thing that keeps a revolutionary idea from becoming a reality is financial support. The mainstream capital collection in start-ups happens by taking money from an Angel investor, personal loans, Crowd-fundings, or getting in touch with Venture Capitalists. These choices each have their advantages and disadvantages, with the disadvantages occasionally outweighing the advantages.