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Indians are so much attached to the sentiment of gold for quite some time now. Irrespective of the occasion, as and when the gold prices plummet, you find them congregating near the gold stores. Even the volume of gold imports was exorbitantly high in 2021. According to a source, India imported gold worth $55 billion in the same year – double the last year. The precipitous demand for gold surged during the pandemic because of the plummeting prices and overdue weddings.

Overall, Indians purchased Rs 3.40 lakh crore worth of gold in 2021 alone. You can use this popular asset for many purposes, like applying for a loan against gold, using it as an asset to building wealth, etc. Since March 2020, loans against gold skyrocketed by a ginormous 82 percent, states RBI reports. However, people are often left wondering if using this precious yellow metal to get a loan is a good idea or not. Let’s try to know more about a loan against gold, and find the answer to this question.

Why is a Gold Loan better?

Taking a loan against gold in India has become a common practice. As gold is highly liquid, pledging this asset can instantly get quick cash from any financial institution. You can use the loan amount for any purpose like buying a car, planning a wedding, going on a family trip, etc. While there are many types of loans like unsecured personal loans, vehicle loans, home loans issued for specific purposes, gold loans don’t have any restrictions.

After paying your last loan installment, you can collect the gold jewelry you kept with the lender as collateral security. In case, if you miss paying your gold loan amount, the lender can convert your furnished gold jewelry into cash and reclaim the loan value.

Benefits of Taking a Loan against Gold

Most people choose gold over other investment avenues because of its ever-increasing demand and high liquidity. Yes, a loan against your gold jewelry is a good option. There are so many benefits of taking a loan against gold.

1. No credit score: Generally, lenders ask borrowers to furnish a pile of proofs and documents before sanctioning the loan, and credit score information is one of them. Fortunately, a gold loan doesn’t require a credit score report. With a lender like Muthoot FinCorp, you can submit only the basic KYC documents and get your loan.

2. No fee for prepayment: It’s the borrower’s responsibility to repay the loan as per the predetermined EMI installment period. Failing to pay will levy a penalty, leading to a spike in the total loan amount. On the other hand, at companies like Muthoot FinCorp, borrowers won’t be levied with any additional charges for prepaying the foreclosure charges after 3 months of taking the loan.

3. Maximum loan amount: Borrowers get the gold loan based on the worth of the gold jewelry they submit to the financial institution. Lending houses like Muthoot FinCorp offer a gold loan of up to 75% of the total gold presented. Here, you can get a maximum gold loan of Rs. 50 lakhs.

4. Instant disbursal: Generally it takes 7-10 working days to get a loan sanctioned and disbursed when it comes to loans like personal loans or housing loans. When it comes to a loan against gold, once your information gets verified and approved, your gold loan amount gets sanctioned and disbursed instantly. With Muthoot FinCorp, you can get a gold loan amount in 10 minutes. What’s more, there are easy and same-day top-up options available on your existing gold loan with Muthoot FinCorp, making it easier for you to get an additional loan amount.

5. Flexibility in repayment: Sometimes, managing monthly finances can be difficult, especially when you are paying loans. So, when it comes to a loan against gold, it’s important to look for repayment flexibility. At Muthoot FinCorp, you have the leeway to pay the principal and interest in the initial stage or at the end of maturity. If things are going south with your finances, you can always opt for a monthly or quarterly EMI facility that saves you from shelling huge amounts.

Wrap-up

If there’s any refinancing investment avenue as good as any, it’s a gold loan. Not only do Indians buy gold in huge quantities, but they also use them to get loans from banks and other financial corporations. This asset-backed security doesn’t require a credit score or detailed documentation for getting approved. Before availing of a gold loan, check the tenure, ability to repay, gold purity, etc.

Living with debt is a reality that too many Americans face. It can be hard to go on and live your life when debt collectors are constantly calling you and you never have any money left in your bank account after payday.

According to recent studies, 79 million Americans are living with some degree of debt. It affects every aspect of your life and can be mentally draining. Stress, depression, and anxiety can begin to consume you if you’re living with a debt that you’re unsure how to pay off.

There are ways you can tackle your debt and get your life back. Not every option is going to be the right one for you, but here are 5 ways you can deal with your debt and get your life back.

Ask A Professional

Debt is a serious problem that can lead to serious consequences. Living with a high amount of unpaid debt can lower your credit score and make it hard to get a loan or even rent an apartment!

If you’re dealing with a lot of debt and don’t know how to go about tackling it then your best bet is to talk to a professional. Set a meeting with a debt or financial counselor. They’ll go over all of your debt with you and provide you with options for tackling it based on your unique situation.

A professional can refer you to other resources that could help lower some of your debt. They can also help you figure out where you can cut costs in your day-to-day life to start repaying your debts. They are seasoned professionals who will help you determine a plan to improve your financial future.

Avoid It

Obviously, this won’t be much help to you if you already have debt, but the best way to deal with debt is to avoid it. Don’t take out loans that you can’t repay. Don’t buy that $1,000 cell phone just because you’re positive you can afford the $50 monthly payments.

One medical or personal emergency, unemployment, or a number of other unexpected factors could leave you unable to afford that monthly payment. Never buy something unless you could afford the pay the full amount, right then and there, in cash and still be financially comfortable.

Avoid falling into a debt trap by paying all of your bills in full and on time when possible. Never use your credit card to withdraw cash at an atm. When you do find yourself in debt you need to be proactive. Don’t wait too long to take care of the problem because it will only become exponentially worse.

File Bankruptcy

Sometimes we get ourselves into a situation that we can’t get out of. When that happens, it’s time to take a step back and try something different. You could spend the rest of your life chipping away at insurmountable debt, only for it to be shifted to your spouse or family members after you pass.

There are different types of bankruptcy you can file for so you’d need to speak with a professional to determine which is right for your situation. Bankruptcy should be a last resort, but it can be so worth it.

Filing for bankruptcy, “will give you a fresh start and allow you to take back control of your life,” says Karl S. Pearson, founder of Pearson Law, PLC, and one of the bankruptcy lawyers in Scottsdale AZ. Some forms of bankruptcy even allow you to retain your assets, including your car and home.

Payment Plans

Staring down thousands of dollars of debt is an overwhelming and depressing feeling. It can be hard to imagine ever coming out from under this burden, but it is possible. Most companies understand the financial burden that debt can place on a person and are willing to work with you if you communicate with them.

Call whoever is in charge of your debt and discuss your options with them. Most companies are more than willing to schedule set payments with you on a specific payment plan. Remember, these companies simply want to see progress against the debt. They don’t expect you to pay it all off at once.

Make your minimum payments on time every month to ensure that a late fee isn’t added to your debt. If you ever can’t make your scheduled payment then you need to call the company immediately and inform them. Oftentimes, they’ll be more understanding than you think and give you an extension.

Take A Class

Many people find themselves victim to debt because of bad financial choices and lack of knowledge about how their finances or credit works. The best way to start working toward becoming debt free is to grow your knowledge about how finances and credit work, and how they should work for you.

You can take classes online or even at a local community college if one is offered in your area. It’ll give you the chance to learn the ins and outs of what debt is, how it happens, and ways you can avoid it in the future.

Older individuals are more susceptible to chronic diseases and require extensive treatment to recover. After their retirement, meeting such treatment costs becomes quite challenging for them with a limited source of income. Keeping this in mind, investing in a senior citizen health insurance policy should be an integral part of one’s retirement planning.

However, before availing, individuals must be aware of its intricacies and how to choose the most suited option.

Key benefits of Health Insurance Plans for Senior Citizens

As mentioned earlier, after retirement, handling the medical expenses and treatment costs of critical illnesses become difficult for elderly persons. This is mainly because they barely have a proper source of income after that stage of their lives. Considering that, it is essential to avail of a health insurance plan that is dedicated to this group of individuals.

Following is a list of advantages policyholders possessing a senior citizen health insurance plan will be getting:

Cashless claim facility

With such policies, individuals get the convenience of cashless claim features at the network hospitals of that particular insurer. In case of medical emergencies, the family members do not have to arrange funds to finance the hospital expenses. Once the patient is admitted to one of those network hospitals, they will be able to avail of a cashless claim, and the insurer will be covering the entire costs.

Lifetime renewability

Unlike traditional health insurance plans, such policies applicable to senior citizens usually offer a lifetime renewability feature. With this facility, the policyholders can avoid the complications that come with policy renewal at an older age.

Less waiting period

The waiting period is the time limit during which policyholders are not able to claim health insurance benefits. This period is comparatively lesser for health insurance policies for senior citizens than the traditional policies. Since chances of developing critical ailments get increased after a certain age, the scope for urgent medical emergencies also increases with that.

Because of this particular feature, individuals do not have to wait for years to claim the treatment cost.

Tax benefits

The availability of income tax benefits is another major reason why health care insurance policy can be a part of one’s retirement armory. Here is an explanation of the tax deduction available on such policies –

• Individual and parents below 60 years of age: Up to Rs.50,000
• Individuals and family members below 60 but parents above 60: Up toRs.75,000
• Everyone in a family is above 60: Up to Rs.1,00,000

Apart from these, no claim bonus, hospitalization expense cover, and pre-medical screenings are additional advantages that one gets from such policies. However, individuals must keep certain aspects in mind before availing them to make the most of these benefits.

Points to consider before choosing senior citizens’ Health Insurance Policies

Efficacy of Medical Insurance claims

Before investing in such a policy, individuals must check both the claim settlement ratio and the time the insurers generally take to settle the claim. It is advisable to pick an insurer offering high CSR.

Availability of Free Look Period

The free look period is the time during which policyholders have the freedom to have a free look at the insurance plan. With this particular feature, you get to understand its clauses properly and cancel them in case the terms do not match your requirements.

Furthermore, one should also check if an insurance provider has access to a wide network of affiliated hospitals, pre-existing illnesses cover, etc., before availing senior citizens of health insurance policies.

Merchant banks are different from retail and investment banks and target a customer base between the two. While retail banks cater to the needs of the general public and investment banks work with big sharks and the government sometimes, merchant banks facilitate medium to large-sized businesses. Now, if you wonder what a merchant bank is and what it does, here’s everything you need to know.

What are Merchant Banks?

Merchant banks are financial institutions that help big businesses with loans and funds along with giving financial advice. You may call them a combination of consultancy service and banking. They facilitate the growth of companies that do not receive loans or investments from other financial institutions. Merchant banks offer portfolio management, underwriting, loan syndication, and financial advice. Some such banks also provide financial assistance on an equity basis.

Merchant banking helps businesses in multiple ways:

• They help modernize the business.
• Merchant banks help boost businesses by raising funds.
• You may take merchant banking services to revive your dead business through their strategies.
• They facilitate buying and selling of stocks in the stock market.

Functions of Merchant Banking

Besides the few mentioned above, merchant banks perform numerous functions for their client organizations:

Portfolio Management

Merchant banks help their clients manage their portfolios and buy securities on their behalf. Merchant banks offer consultancy services and improve the value of underlying investments. They assist their clients in making deals and purchases and enable the sale of securities. By managing their portfolios, these banks facilitate businesses with making decisions for safe investment. Simply, they buy and sell shares alongside managing fund investment for companies. They also make fundraising possible for their clients.

Project Management

As merchant banks are counseling institutes besides offering financial assistance, they help their clients regarding different aspects of a project. From researching the project’s success possibility to assisting you in making a decision and managing the project, they are there throughout. Project counseling or management covers all aspects of the project, including idea generation, research, budgeting, designing plans for financing the project, and advising about possible increments and concessions.

If you ask your bank for further help, they also extend their expert advice on the location of the plant, feasibility reports, policy benefits, and sources of support. Having a merchant bank on board with you on a project means that you do not have to worry about anything and relax while taking care of investments and solutions to associated problems.

Credit Syndication

One of the major reasons businesses approach merchant banks is their credit syndication services. If you have not been able to get a loan from any of the big names that might help your business reach heights, a merchant bank can always help you.

Merchant bankers are qualified and experienced in the domain and know how to get money from a specific institution. They understand the matters in-depth, making it comparatively easy to get credit from another company or financial institution. They provide loan syndication services to their clients to smoothen and speed up project planning and loan applications to get short-term and long-term loans.

Merchant banks do so by estimating the costs and creating a professionally correct financial plan not to miss any important, relevant details. They also help select the right institution for you to request credit and comply with all the terms on the application with the investors.

Merchant banks provide multiple services collectively known as credit syndication. These include

• Estimating the overall cost of the project
• Designing a financial plan that covers all loans and investments you need while putting down all important information
• Suggesting ideal financial institutions for short-term and long-term loans
• Helping the clients with the loan application, complying with the financing company’s terms, and monitoring the progress
• Taking care of legal documentation formalities of the investing companies

Apart from all this, the counseling feature of merchant banking helps you estimate the capital requirements and help negotiate.

Facilitate Small Businesses

While merchant banks are primarily considered good friends of medium-sized to big companies, they also offer entrepreneurs and small companies services. They usually counsel small businesses about bigger opportunities, incentives, concessions, and government policies to boost their business. By taking advantage of these policies and incentives, they can grow and become an eminent name in the market.

Revive Dead Units

Experts at merchant banks are not only adept at helping businesses get loans from companies or project management, but they are also good at reviving and restructuring units or dead businesses. Merchant bankers connect with long-term financial institutions and assure them about the potential in your business. It requires proper documentation, negotiation, and taking care of the legal needs of the investor.

Stock Market Brokerage

Merchant banks are also an excellent choice for stock market brokerage to buy and sell stocks on your behalf. To make sure that they make the right choice for you, merchant banks carry surveys and suggest to you about which shares to purchase, for how long, and at what rate. Having a merchant banker to do all this for you lets you know that your money is in safe hands with experienced people. Merchant bankers also counsel their clients about when to buy the shares and sell them for the best profits.

Manage Public Issue

For companies that are not aware of the public issue of their business, merchant banks help them with the timing of the issue, form, and enable them to be specific to customers.

Merchant banks manage the public issue by:

• Advising the price and size of public issue
• Counseling at the time of filling up
• Acting as a manager in the whole process
• Listing the shares purchased
• Allotting securities and helping in accepting applications
• Helping with the appointment of brokers

The Bottom Line

If you are a medium-sized business, you can let go of all your funding and stock-exchange-related worries by connecting to a merchant bank. They are genies that help you with all issues, from counseling to getting loans and credit for your company. Merchant banks also buy and sell stocks on your behalf and manage portfolios and the public issue.