Finance and Investment

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I shall try to focus on various financial tools, terms. You can expect basic understanding about these tools/ techniques, tips as well as hacks

4 reasons why gold loans are preferred over personal loans

January 24, 2018 08:01AM, 0 comments

If you need a loan and have some amount of gold with you, then it’s time to discard the personal loan route and opt for gold loans . Though, many of us have emotions tangled with our gold jewelry and thus, we prefer to keep them safely in lockers. Although, this perception is changing now and many of us are using this gold to raise short-term loans that have low interest rates as compared to that of personal loans. Hence, here are the 4 reasons why gold is better than personal loans in order to meet your short-term financial needs:

  • Rate of Interest: As compared to the personal loans, interest rates on gold loans are cheaper. Besides, you can negotiate the interest rate, if you pledge for the higher value of gold for availing the loan.
  • Monthly Installments: In case of personal loans, your EMIs are calculated on the basis of your credit history and repayment capacity. Thus, people with less income usually end up paying high EMIs. But, with a gold loan, you don’t have to worry about less income and bad credit history, as they are secured loans and the only factor that plays an important role in determining the loan amount is the value of the gold.
  • Documentation: Gold loans are secured loans and thus, they require minimum documentation. All that you need to do is to provide a copy of your photo ID and an address proof.
  • No pre-payment penalty: A gold loan is preferred over a personal loan in terms of pre-payment charges as well. In case of a gold loan, you can pre-pay your loan anytime and banks will not impose a penalty. Although, in case of personal loans, banks levy a pre-payment penalty on the outstanding loan amount.

Henceforth, in the battle of gold loans and personal loans, gold loans win on various grounds. For those, looking for a convenient, hassle-free loan against your gold asset can easily apply for a bank loan online on Yes Bank.

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Benefits of Having a Current Account

November 02, 2017 12:11PM, 0 comments

A current account is a financial tool usually opened by business entities to carry out banking transactions. Since they are zero-interest bank accounts, they are ideal for large-scale transactions on a daily basis. However, not much is known about their multiple benefits for employed professionals. Sole proprietors, freelancers and other workers who run their own thing generally drift towards savings account for business transactions. As a result, they are unable to take advantage of the following benefits of a current account.

BRINGS PROFESSIONALISM IN BUSINESS:

Having a current account in the name of your business goes a long way in legitimizing your work. This is because the cheques you issue will carry the name of your current account, and build trust in clients. It also displays an efficient and professional image and signifies the growth of your business.

KEEPS PERSONAL AND BUSINESS FINANCES SEPARATE:

For freelancers and sole proprietors, it is important to segregate personal and business accounts. Unlike a company, they are often not treated as a separate legal entity. But a current account can help in being treated in a more professional regard by clients. A current account can also help in financial planning and track the progress of the business.

OVERDRAFT FACILITY:

Another important benefit of having a Current Account is that one can easily avail overdraft facilities when in need. Overdraft facilities allow the account holder to overdraw the balance in the account on a temporary basis, in case of any shortfall in funds. This short-term borrowing facility is not available in a savings account. Depending on the bank, you may or may not be levied interest.

USEFUL FOR LOANS:

It can be used to prove your creditworthiness to banks and lenders. Just a simple letter stating that you are a Current Account holder by a reputed bank eases the loan process a lot.

EASES BANKING TRANSACTIONS:

A current account offers easy and quick banking experience that comes with a lot of facilities. Banks prefer opening current accounts as there is no interest charged on the holder. These accounts also come in-built with useful services like 24 hrs mobile banking, net banking, doorstep banking, and mobile alert services. While these may be available for savings accounts, there is no minimum balance requirement for current accounts. Additional benefits include free inward remittances, deposits, and withdrawals at any locations, free pay orders/demand drafts, personal finance manager, etc. 

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