Smart Ways You Can Use Gold to Fund Your Startup: Gold to fund a business

A revolutionary idea can turn into reality if you have a solid financial backbone. We all know that finance is not only essential but also a necessity for running a successful business. At a time when the world is facing inflation and unemployment at its peak, a robust business will not only benefit the business owners but also provide employment and generate revenue for society. 

Wouldn't it be amazing if your idle gold takes care of your finances and provides solid financial support? 

Visualizing a Startup

A startup is a fancy word to mark a company in its infancy stage. Generally, startups try to build a market presence focusing on a single product or service. The business model of the startups does not go full-fledged due to a lack of financial assistance.

Seed capital, the money provided by the investors in exchange for stock or equity in that company. Seed capital can only cover the essentials like a business plan, rents, equipment costs, and other needful things. 

Making a startup Successful

• Identifying a market opportunity
• Making a perfect product to meet consumer needs.
• Strong marketing, sales, and customer service. 
• A legal structure.
• An optimal place enhances the ease of doing business.
• Adapt and keep the scope to modify. 

Scope of startups in India

Startups across the world have created a sensation also true for India. The MSMEs of India contribute more than 30% of India's GDP (Gross Domestic Product). Setting up startups is becoming easier due to government rules. With a flexible tax structure, promoting digital methods of payment, support to OPC (one-person company), and various bits of help, startups are getting popular. 

Preventing a startup from failure

Statistics say that more than 70% of failed startups reported, and you guessed it right, no financial backbone. Counting a gold loan as an option or as an additional source of a fund may prove beneficial for those who are struggling to meet their goal or are in need of extra.

Taking a loan against gold is like reusing your asset. Think about the ideal gold, which is lying in your house locker that can come to help your dream come true or act as fuel in the hour of need. 

• A startup faces a problem when they try to get a loan on unsecured assets. The interest rates are high and woven with lots of terms and conditions.
• You do not want to share equity with investing companies.
• Business expansion stalled due to lack of funds and many other financial constraints to consider.
• Emergency funds to meet the deadline.

The thing that keeps a revolutionary idea becoming a reality is financial support. The mainstream capital collection in startup happens by taking money from an Angel investor, personal loans, Crowdfundings, or getting in touch with Venture Capitalist. These options have their own merits and demerits, sometimes their demerits count more. We will discuss how easy is to get money from your jewellery for your startups. 

Gold Loan as an investment

Gold has been considered one of the must-haves ever since the ages of maharajas in the Indian continent. Gold is always considered an asset. In a time of need, gold can prove to be a lifesaver. 

The gold loan is also known as money lend against, gold is a secured loan when a borrower gets money from the lender keeping their gold coins or jewelry pledged. A gold loan provides up to 75% of its market value means if the market value of the gold is INR 10,000 the borrower will get 7,500 in hand. 

Both the banks and the NBFCs lend money against jewelry. Getting this loan is a lot easier in NBFCs than in the bank. 

NBFCs interest rates are a little to the higher side, but easy paperwork gets the job done in no time. 

Gold loan features

1. Gold is a secured loan, so interest rates are lower than that of other unsecured loans. It provides a higher loan amount up to 20lacs.
2. Have flexible tenure from 3months to 36 months. Loans like agricultural are up to 2 years.
3. Gold is secured in specialized volts with insurance.
4. Have a minimum Processing fee and paperwork.
5. Low charge at foreclosing.
6. Have multiple options of repayment like: 

1. 1. At the end of the tenure.
   2. Or EMI schemes to repay.
   3. Paying the interest first and principal at the end.

Before taking a gold loan the purity of the gold is checked. The gems attached with it are not taken into consideration. The maximum money one can get is in the range between 10000 to 20 lacs.

Now we have gained insight on this topic. Let us enlighten you with our policies. 

How can we help you?

Shriram City Union Finance is a reputed name in the finance sector since the late 1980s. We are a part of the Shriram Group, a Chennai-based finance company (NBFC). Shriram City Union Finance is a Deposit Accepting NBFC registered as a Loan Company with the Reserve Bank of India (RBI) and Ministry of Corporate Affairs of India. We are the largest finance provider to the MSME and two-wheeler. We have an opportunity to serve more than 40 lacs who entrusted us through our 940+  branches and social media. We have implemented cutting-edge fintech technologies to stretch our reach in a click or a tap apart. 

We have already discussed how in times of emergency having gold is a golden opportunity to back financial needs. 

Features of our loan

• Get up to 75% value of the market price.
• The interest rate starts from 11.5%.
• Easy documentation
• A loan amount within a day
• Easy repayment 
• Easy renewal 

SMEs can easily meet their needs with this loan. Other events like marriage, medical emergency, business emergency, education, and similar situations, when a lump sum amount is needed in a minimum time. To know more about the loan click here.

Planning a memorable wedding or visit a foreign land for your holiday? Open a recurring deposit with an attractive interest rate and a high rate of return. We can boast of our thriving success with 5 million active account holders. It's a guarantee we will not let you down. 

The time when inflation is an all-time high in recent years and you are scared of the market crash, our SCFUs FD (Fixed deposit) with 8.25*% rate of interest safely channelize your hard-earned money without any market influence. It will help you to secure the uncertainty to the post-retirement problems like enjoying holidays or medical emergencies. Our FDs will make your life simple and secure. 

Want a two-wheeler to go for an outing with your dream person? Or considering your business to reach people to their doorsteps? Check out our two-wheeler loan policy. Grab your opportunity with us. We are the largest financier in the MSMEs and two-wheelers. We promise a 24hrs disbursement of funds to your bank account. You will be able to track your transactions in our portal 24 X 7. 

In conclusion, a gold loan is an efficient way to manage a small company, dealing with an emergency business situation, education, medical emergencies, and similar situations, when a large amount is needed in a short amount of time. Please go through the documents carefully before investing, if you feel any questions or discrepancies feel free to connect us. 

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