<\/div><\/span>Read More <\/a><\/li>
Is Obtaining a Gold Loan Going to Impact My Credit Score?<\/h3>
$\"\"$

Factors such as your borrowing history and track of repayment impact your credit score immensely. This is why, before sanctioning any loan, lenders make it a point to evaluate applicants' credit scores to gauge their creditworthiness. <\/span><\/p>\r\n
Curious to find out the impact on credit score for gold loans? Read along to learn about its effect and how availing of a gold loan can boost the same. <\/span><\/p>\r\n
Gold Loan and CIBIL Score - The Impact<\/strong><\/span><\/p>\r\n
Here's how this secured loan option may influence borrowers' CIBIL score:

<\/span>i<\/strong><\/span>. Gold loan application impacts the credit score<\/strong><\/span><\/span><\/p>\r\n
Just like any other loan option, applying for a loan against gold can decrease your credit score for the time being. Fortunately, the drop in score is negligible and a direct result of a hard inquiry by a lender to gauge the applicant's creditworthiness. <\/span><\/p>\r\n
When lenders carry out an inquiry about applicants' credit history, it leaves behind a hard pull on his\/her credit report for some time. While the drop in credit score due to query is minimal, applying for multiple loans within a short window could significantly hamper it and represent the applicant as a habitual borrower.

$\"\"$
<\/span>
<\/span>i<\/strong><\/span>i. <\/strong>Helps boost credit score<\/strong><\/span><\/span><\/span><\/p>\r\n
Lenders do not emphasise the need to have a high credit score to avail of a loan against gold. This allows individuals with poor or no credit scores to access funds and fulfil urgent financial requirements.<\/span><\/p>\r\n
Subsequently, by repaying the borrowed sum, they also can increase their current score. Needless to say, a high credit score proves useful in taking out an unsecured loan at better terms more easily. <\/span><\/p>\r\n
Is a Gold Loan an Effective Means to Improve Credit Score? <\/span><\/strong><\/p>\r\n
Gold loan is a popular financing solution that is rapidly gaining traction among borrowers. While its borrowing centric features such as high loan value and low-interest rate make it tempting, its easy eligibility requirement, especially low dependence on credit score, makes it a go-to option for most individuals. <\/span><\/p>\r\n
On top of these, taking out a loan against gold also helps boost the <\/span>CIBIL score<\/span><\/span>, making it easier for potential borrowers to maintain a creditworthy status. <\/span><\/p>\r\n
Here's how a gold loan to boost your credit score: <\/span><\/p>\r\n
-        <\/span><\/span><\/span>Repay the loan on time and avoid losing your collateral<\/span><\/strong><\/p>\r\n
While some lenders may not levy any penalty for late EMI payment, as a borrower it is crucial to repay your debt on time. Timely payment helps to improve credit report, increasing CIBIL score, while delay in paying the same may leave a negative impact on your credit profile. <\/span><\/p>\r\n
Before availing of a gold loan, make sure that you can repay the same in due time because failure to pay the debt could lead to the collateral’s auction. This leads to the loss of valuables and negatively impacts your credit profile. Needless to say, this brings down the credit score and also portrays you as a credit risk when you plan to take out a loan in future.

$\"Is$ <\/span><\/p>\r\n
It is also advised to check the annual rate of appreciation in gold rates prevailing in the market before applying for a gold loan. So, if, due to some unavoidable circumstance, you cannot repay the debt, the lender would proceed to auction the pledged asset, i.e., gold. <\/span><\/p>\r\n
Notably, the compounding interest rate and the depreciated market value will make you lose the collateral value. Additionally, your credit score for gold loan will suffer, and your credit report will reflect a negative status. This will eventually hamper your ability to take out a loan in the future. <\/span><\/p>\r\n
Conclusion<\/span><\/strong><\/p>\r\n
A gold loan is an effective means of accessing funds. However, besides allowing to account for multiple requirements, this funding option also tends to influence borrowers' credit scores and help them improve their profile. <\/span><\/p>\r\n
However, boosting credit scores is a time-consuming process. To improve and eventually increase your credit score, you need to be consistent with regular payments and pay off the entire debt within loan tenure.<\/span><\/p><\/span>Read More <\/a><\/li>
Looking for Gold Loan from a Digital Lender? Consider these Aspects First<\/h3>
$\"Looking$
<\/span><\/strong><\/div>\r\n

With more NBFCs extending gold loan services through digital platforms, taking out funds against gold jewellery has never been easier. <\/span><\/div>\r\n

The convenience, coupled with ease of accessing small and big-ticket loans online further pushed the popularity of digital lenders in the borrowing segment during the lockdown phase. Regardless, several things must be considered before you decide to take out a digital gold loan. <\/span><\/div>\r\n

Here, we have narrowed down the factors that you need to weigh in when opting for a gold loan from a digital lender. <\/span><\/div>\r\n

Top Aspects to Consider Before Choosing a Digital Lender<\/span><\/strong><\/div>\r\nWeigh in these aspects to ensure a smooth and hassle-free borrowing experience online:
<\/span>
1. Check the lender's credibility<\/span><\/strong><\/div>\r\n
As an intending borrower, make it a point to research and verify the credibility of the lending platform thoroughly. This will ensure the safety of your collateralised asset and prevent getting duped by unregulated lenders who impose fraudulent terms and charges. <\/span><\/div>\r\n

One of the easiest ways to check and confirm credibility is by finding out whether the lender is registered with the RBI or is an associate partner of a verified lending institution. You may also gain a significant idea about the website by simply checking out customer reviews and testimonials about the digital lender.

<\/span>2. Interest rates<\/span><\/strong><\/div>\r\n
The interest rate levied by a digital lender is among the crucial things to find out before taking out a gold loan through them. Make sure you are in the loop with the latest gold loan trends and prevailing market rates.

<\/span>3. Terms and conditions<\/span><\/strong><\/div>\r\n
To ensure a smooth transaction it is vital to check accompanying terms and conditions. Go through the same in detail and if required ask the lender to walk you through the steps for more clarity and better understanding. <\/span><\/div>\r\n

Before borrowing, make it a point to find out the type of interest they levy on gold loans and whether they offer any customised repayment structure or not. In case they do, check the terms and conditions accompanying it.

$\"Looking$

<\/span>4. Repayment structure and channels of payment<\/span><\/strong><\/div>\r\n
Most NBFCs today extend flexible repayment options to borrowers. As an intending borrower, you must find out about the different payment structures in detail to choose the one that suits your requirements and repayment capability the most. <\/span><\/span><\/div>\r\n

Borrowers often have the option to choose from among interest-only payment, EMI payout, or bullet payment to clear off their debt. <\/span><\/div>\r\n

The USP of most online gold loans is the repayment channels they offer. For instance, SBFC allows gold loan borrowers to repay the borrowed sum through multiple channels such as IMPS, UPI, NEFT, bank deposit, and cash deposit.

<\/span>5. Transactions made out to registered account<\/span><\/strong><\/div>\r\n
Make it a point to find out if you will be required to make payments under the loan executive's name. It is recommended to stay away from such an arrangement since it might not be safe. <\/span><\/div>\r\n

Instead, look for NBFCs who ask you to transact with the official account that is registered under it or its partner platform's name. Ideally, online payments are considered safer as they are easily traceable.

<\/span>6. Doorstep application process<\/span><\/strong><\/div>\r\n
The USP of digital gold loan is the most crucial part of taking out a loan, i.e., the application process and documentation are carried out entirely online. However, some NBFCs extend a special feature of doorstep gold loan application to keep the process smooth and hassle-free. <\/span><\/div>\r\n

For instance, SBFC extends the Gold Genie feature wherein a gold loan executive visits an intending borrower to allow them to apply for the loan from the comfort of their home.

<\/span>7. Documentation and disbursal<\/span><\/strong><\/div>\r\n
A digital gold loan has minimal documentation requirements. Typically, borrowers who apply for a digital gold loan with SBFC have to submit documents that serve as proof of identity<\/span> and address to take out funds against their gold ornaments. The simple documentation accelerates the verification process, ensuring prompt disbursal of funds.

<\/span>8. CRM support<\/span><\/strong><\/div>\r\n
A real time customer service further improves the convenience that accompanies digital gold loans. Often borrowers find reminders about EMI payments and outstanding loans sent via SMS or email helpful as it prevents borrowers from missing out on payment due dates and consequently avoid penalty. <\/span><\/div>\r\n

Since almost all processes of taking out a digital gold loan are carried out online, choosing an NBFC that extends prompt CRM support could prove immensely beneficial for a borrower.

<\/span>9. Gold valuation<\/span><\/strong><\/div>\r\n
Since the amount you can access on a gold loan depends on the valuation of the gold, it is important to find out how a lender chooses to value your precious metal. In most cases, lenders accept gold with a minimum of 18-carat purity to sanction a loan against it. <\/span><\/div>\r\n

Also, SBFC chooses to offer 75% of the gold value as loans to applicants. Notably, they choose to offer loans against gold ornaments and not bullions or coins. So, as an intending borrower, make sure to find out about these aspects beforehand to avoid confusion.

<\/span>10. Prepayment and foreclosure charges<\/span><\/strong><\/div>\r\n
To ensure transparency, you must also make it a point to find out whether you are expected to bear a prepayment and foreclosure charge against your gold loan account or not. While most lenders do not levy these charges, some may require you to pay up to 2% of the borrowed sum as a penalty. Avoid such confusion by reading fine prints carefully. <\/span><\/div>\r\n

Besides these, make sure to find out the repayment tenure and processing fee that accompanies your choice of a digital gold loan. Indeed, taking out a gold loan online is convenient; however, the entire experience depends on the lender you choose. This is why it is important to weigh the credibility and expertise of a lending institution before taking out a loan. <\/span><\/div><\/span>Read More <\/a><\/li>
Why is Gold Loan the Best Choice to Fund your Education?<\/h3>
$\"Why$

In the last couple of years, gold loans have come under the spotlight for all the right reasons. It is now being counted among the most popular financing options in the lending sector due to its borrower-centric traits and organised structure.<\/span><\/p>\r\n
Accordingly, the secured financing option has found wide application in meeting sizeable requirements, including sponsoring higher studies. So, with more individuals now willing to take out a gold loan to fund their studies, should you consider the same?<\/span><\/p>\r\n
Take a look at the factors discussed below to understand how and why a gold loan could be a suitable option for higher studies.<\/span><\/p>\r\n
Reasons to Take Out a Gold Loan to Fund Higher Education<\/span><\/strong><\/p>\r\n
These pointers highlight the reasons that make a loan against gold viable to finance higher studies.

<\/span>\u25cf  <\/span><\/span>Simple eligibility criteria<\/span><\/strong><\/p>\r\n
When compared to an education loan, a gold loan comes with less stringent eligibility criteria. To elaborate, an education loan not only weighs in the applicants' repayment capacity but also factors in the merit of the student in question.

<\/span>\u25cf <\/span>  <\/span><\/span>Easy documentation<\/span><\/strong><\/p>\r\n
When it comes to taking out a gold loan, applicants do not necessarily have to submit a list of documents such as income proof, income tax returns, and proof of employment, among others. In fact, to apply for a gold loan, submitting basic documents that serve as proof of your identity<\/span> and address would suffice. This simplifies documentation significantly and makes the process of verification quick.

<\/span>\u25cf <\/span>Restriction-free usage<\/span><\/strong><\/p>\r\n
Pursuing higher studies, especially in a foreign university, is quite expensive. However, such expense is not always limited to college admission fees.<\/span><\/p>\r\n
If one decides to pursue higher studies in a foreign university, the student also has to bear the cost of travel, food, lodging, alongside tuition fees.<\/span><\/p>\r\n
Unfortunately, most education loans do not cover these major ancillary charges as they have rigid end-use restrictions. However, there are no such restrictions on how one can use the sanctioned amount when it comes to gold loans. This makes it possible for students to account for their college fees, allowing them to go bear the cost of living in a different city or country with ease.

<\/span>\u25cf <\/span>High loan to value ratio<\/span><\/strong><\/p>\r\n
Gold loans come with a high loan to value ratio, allowing borrowers to meet their financial requirements with ease and without taking out additional small ticket loans. As a borrower, you can avail up to 75% of collateralised gold's value as a loan and account for education expenses with ease.

$\"Gold$

<\/span>\u25cf <\/span>Doorstep facility to avail loans<\/span><\/strong><\/p>\r\n
Leading NBFCs make gold loans a better option to finance higher studies by simplifying the application process further. For example, SBFC has started the Gold Genie facility to benefit applicants and make gold loans more accessible. In the said process, individuals can apply for a gold loan from the comfort of their home as the NBFC extends a doorstep facility to initiate the application and documentation.

<\/span>\u25cf <\/span>Quick disbursal<\/span><\/strong><\/p>\r\n
Easy application and minimal documentation allow NBFCs to disburse the sanctioned loan amount quickly. This enables borrowers to account for their financial requirements without any delay. Typically, SBFC takes only 15 minutes to disburse the approved loan amount to keep the borrowing process short and simple.
<\/span>
<\/span><\/span>\u25cf <\/span>Easy repayment terms<\/span><\/strong><\/p>\r\n
The simple repayment structure that accompanies gold loans further adds to its merit. Borrowers get repayment options such as interest-only payout, EMI payment, and bullet payment to clear their debt within a tenure of their choosing.<\/span><\/p>\r\n
Furthermore, NBFCs like SBFC extend flexible repayment tenure of 2 years and allow borrowers to choose from multiple repayment options such as IMPS, NEFT, UPI, cash deposits, and virtual payments.<\/span><\/p>\r\n
Conclusion<\/span><\/strong><\/p>\r\n
Leading financial institutions have made education loans accessible to tap into the growing demand for funding higher education. However, while education loans are a viable option to fund higher studies, they come with a barrage of stringent requirements that often make it difficult for students to avail them.<\/span><\/p>\r\n
For example, only those accepted in recognised universities and colleges of specific locations are considered eligible for an education loan. In addition, most education loans do not cover expenses such as cost of living, accommodation, stationary charges incurred while pursuing higher studies abroad.<\/span><\/p>\r\n
Education loans also require applicants to assign guarantors or coapply with parents to avail funds. All these pointers make the process of financing higher studies cumbersome.<\/span><\/p>\r\n
Fortunately, you can easily avoid these hassles by opting for a loan against gold ornaments and making your borrowing experience smoother.<\/span><\/p><\/span>Read More <\/a><\/li>
All About the Future of Gold Loan in India<\/h3>

In the last few years, gold loans have managed to solidify their market position as a robust source of funding. Several factors such as high loan quantum, ease of accessing funds, and smooth repayment process continue to add to its popularity and strengthen its future in the market.<\/span><\/p>\r\n
That said, read along to gain insights into the future of gold loan in India and what it means for borrowers.<\/span><\/p>\r\n
Gold Loan's Position in the Current Market<\/span><\/strong><\/p>\r\n
A report by the World Gold Council suggests that we can expect the gold loan market to expand at 15.7% annually. As a result, it is anticipated that the market could touch Rs. 4.617 trillion <\/span>mark in the financial year that will end on March 2022. In the year ending March 2020, the market was valued at Rs. 3.448 trillion.<\/span><\/p>\r\n
Gold Loan Share in Organised and Unorganised Sector<\/span><\/strong><\/p>\r\n
In a report from 2020, KPMG stated that the outstanding gold loan in the organised sector made up 5.5% of total gold in households in 2019.<\/span><\/p>\r\n
Similarly, it stated that organised lenders make up a 35% share of the country's gold loan market. On the other hand, unorganised lenders make up 65% of the market share.<\/span><\/p>\r\n
Based on KPMG's report, the organised lender has a huge upside and opportunity for growth. In fact, experts believe that the organised sector of the gold loan market has immense potential to expand its assets under management to twice its current size within the next 10 years.<\/span><\/p>\r\n
Factors Impacting Gold Loan Popularity<\/span><\/strong><\/p>\r\n
Q1 of 2021 witnessed a dip in gold rates. However, the same has recovered significantly in recent times.<\/span><\/p>\r\n
In fact, the total outstanding gold loan among financial institutions increased to Rs. 604.64 billion in March 2021 from Rs. 185.96 billion in early 2020. However, total outstanding loans held with financial institutions grew at a slow rate of only 8.3% during the same period.<\/span><\/p>\r\n
Some of the factors responsible for the improvement in gold rates and gold loan demand include:

<\/span>\u25cf NBFCS renewed interest in expanding gold loan credit facilities for business and emergencies.

<\/span>\u25cf Bullish outlook on gold price rally since 2019 continues to add to the popularity of loans taken out against gold ornaments and coins.

<\/span>\u25cf Demand for gold loans increased when households faced a pandemic induced financial crisis.<\/span><\/p>\r\n
Gold Loans Amidst Pandemic<\/span><\/strong><\/p>\r\n
Like any other economy, India is recovering from the pandemic induced financial crisis. In such a situation, a healthy improvement in the country's economic activities is expected. Experts believe that gold loans for businesses and home improvement could see a boost.<\/span><\/p>\r\n
This is because a gold loan has always been considered a viable option to access funds for short-term requirements.<\/span><\/p>\r\nA. Gold loan in an emergency<\/span><\/strong>
\r\n
Gold loan is an effective financing option that allows individuals to leverage their gold ornaments to access funds. Eligible applicants can raise up to 75% of their gold value as a loan. Lenders depend on external\/internal appraisers to determine the value of the pledged gold. Since it is a secured loan option, most NBFCs follow a simple application and quick disbursal process. This makes gold loans an ideal financing option to cater to requirements like a medical emergency, education, etc.<\/span><\/p>\r\nB. Working capital requirements<\/span><\/strong>
\r\n
A significant surge in demand for gold loans from a self-employed segment of borrowers and micro enterprises has been noticed in recent years. With the economic boost, business activities, and emphasis on expanding micro industries and companies, more individuals leveraged their gold to access working capital.<\/span><\/p>\r\n
In fact, as per a report published by CRISIL, factors such as easing of lockdown restrictions, need to replenish business capital coupled with the festive season have worked in favour of availing funds through means like gold loans.

$\"\"$ <\/span><\/p>\r\n
Leading NBFCs expect that the future of gold loans in India portfolio could witness a favourable surge. Experts believe that multiple catalysts put in place by NBFCs will continue to push the demand for gold loans among borrowers.<\/span><\/p>\r\nFor instance, many believe these following factors could help strengthen the footing of gold loans even further.
<\/span>
<\/span><\/span>Ease of applying for a loan
<\/span>
\u25cf Attractive interest rate and processing charges

<\/span>\u25cf High ticket size financing and quick disbursal time

<\/span>\u25cf Relaxed repayment structure and transparenc

<\/span>\u25cf Multiple payment options and platforms<\/span>
\r\n

lending institutions such as SBFC offer up to 75% of gold’s value as a loan. Applicants can also benefit from the Gold Genie facility, where they can apply for a gold loan from the comfort of their homes and under the guidance of experts.<\/span><\/p>\r\n
Conclusion<\/span><\/strong><\/p>\r\n
It can be said that traits of gold loans and external factors such as an increase in gold value, a rise in the level of inflation, and a fast-paced economic recovery will boost its demand further.<\/span><\/p>\r\n
Additionally, if NBFCs continue to make gold loans more accessible to borrowers and simplify the process of repayment further, this credit option will continue to shine in the future. This will make the funding option more popular and improve the borrowing experience for those in need of funding.<\/span><\/p><\/span>Read More <\/a><\/li>
Gold Loan Repayment: 4 Easy Ways to Repay<\/h3>
$\"\"$

Taking out a gold loan has become more accessible than ever, thanks to the quick online and doorstep application process. However, borrowers sometimes still lack enough information on how to streamline gold loan repayments for better debt management. Ideally, the first step towards doing so is to find out the different ways to repay a loan. <\/span><\/span><\/p>\r\n
Here are 5 popular ways to repay a gold loan; take a quick look at them to help you select the most suitable one.

<\/span>1. Pay the interest first and principal later<\/span><\/strong><\/p>\r\n
In this repayment arrangement, borrowers need to pay the specified interest component of a gold loan. The borrowed sum, i.e., principal amount, needs to be paid fully on maturity. <\/span><\/p>\r\n
This option works in favour of borrowers who do not necessarily have a regular income or cash flow to service a loan's principal and interest component at once. <\/span><\/p>\r\n
However, because of the minimum repayment, the interest accrued on loan would amount to a higher sum. Hence, before opting for this gold loan repayment option, applicants need to gain full insight into the resulting cost of borrowing.

<\/span>2. Opt for regular EMI payment<\/span><\/strong><\/p>\r\n
This particular option is standard when it comes to repaying most loans. In this arrangement, borrowers have to repay the principal amount and interest in EMI from the month following loan disbursement.<\/span><\/p>\r\n
The monthly repayment is considered most suited for borrowers with a steady income or cash flow. Repaying a percentage of the principal component from the tenure’s start, makes this option the one with the lowest interest burden.

$\"Gold$

<\/span>3. Choose bullet payment at tenure-end<\/span><\/strong><\/p>\r\n
This gold loan repayment arrangement does not require borrowers to pay monthly interest. However, the same has to be paid along with the principal component at the end of tenure. <\/span><\/p>\r\n
For instance, suppose Rakesh has borrowed a gold loan of Rs. 3 lakh for a tenure of 12 months @ 9.5% interest. He also opts for bullet repayment that does not require him to pay any interest or principal component throughout the tenure. <\/span><\/p>\r\n
On maturity, Rakesh will pay not only the principal component of Rs. 3 lakh, but also pay the applicable interest amount accumulated on loan. The catch with bullet payment is that the interest amount is calculated on the entire borrowed sum and not on the reducing outstanding balance, elevating one’s cost of borrowing.

<\/span>4. Make use of partial payment<\/span><\/strong><\/p>\r\n
Borrowers get an option to make partial payments towards their active loan as and when they have substantial savings. In this arrangement, borrowers pay both principal and interest components partially or in full. Lending institutions allow this, regardless of the pre-set monthly payment schedule. <\/span><\/p>\r\n
Typically, interest is computed on a daily basis and on the outstanding loan amount. In other words, when a borrower decides to repay his\/her principal loan amount before tenure, the serviceable interest component gets lowered. As a borrower, you can put your bonus, returns on investment, or interest earnings to great use and repay your debt faster. <\/span><\/p>\r\n
Bonus:<\/span><\/strong> Prepayment and foreclosure of loans<\/strong><\/span><\/p>\r\n
Borrowers also allow prepayment and foreclosure of gold loan account. Some lenders do not levy any prepayment or foreclosure charges if it is paid within a pre-specified window.

<\/span>These are some popular ways to repay your gold loan. However, besides repayment options, you should also find out the different platforms through which you can repay loan instalments. <\/span><\/p>\r\n
Most lending institutions allow borrowers to repay instalments through the auto-debit facility by linking their credit or debit card with their loan account. Lenders may also accept payment via banking apps and other online and offline platforms.<\/span><\/p>\r\n
For example, if you take out a gold loan from SBFC, you get the option to repay it through these online and offline platforms: <\/span><\/span><\/p>\r\n
\r\n
UPI<\/span><\/li>\r\n
IMPS<\/span><\/li>\r\n
NEFT<\/span><\/li>\r\n
Cash deposits<\/span><\/li>\r\n
Virtual payments<\/span><\/li>\r\n<\/ul>\r\n
Opting for online payments make the entire process even more hassle-free. <\/span><\/p>\r\n
Conclusion<\/span><\/strong><\/p>\r\n
As an intending borrower of a gold loan, it is crucial to identify the pros and cons of these repayment options. By doing so, you will be able to select gold loan repayment methods that will help you pay off your debt without any hassle. <\/span><\/p>\r\n
While at it, find out in detail about applicable rates and charges on your gold loan. This will help compute the cost of borrowing and keep the entire process transparent. Subsequently, apply for a gold loan at the earliest, get in touch with us and request for our Gold Genie to experience our doorstep application process right away. <\/span><\/p><\/span>Read More <\/a><\/li>
4 Ways Gold Rate can Impact Gold Loan<\/h3>
$\"4$

Gold loan is a viable financing option to meet several requirements. And, why not?<\/em><\/span><\/p>\r\n
The secured funding option does not just allow applicants to leverage their dormant assets but also helps them access substantial funds at a feasible interest rate. However, it is crucial to note here that the prevailing gold rates significantly impact this credit option. This makes it essential for an intending borrower to understand the concept from up close.<\/span><\/p>\r\n
Take a look at these sections below to understand how gold rate influences this funding option.<\/span><\/em><\/p>\r\n
These are 4 Ways in which Gold Rate Impacts Gold Loans<\/span><\/strong><\/p>\r\n1. Loan-to-value or LTV<\/span><\/strong>
\r\n
Loan-to-value is among the top factors that affect this secured funding option. As per the Reserve Bank of India's directive, the maximum <\/span>LTV ratio is capped at 75%<\/span>.<\/span> In other words, as a borrower, you can access up to 75% of your gold’s value as funding.<\/span><\/p>\r\n
To break it down, when the gold price surges, the amount of money made available to borrowers will also increase. However, in a declining trend, borrowers need to pledge more assets.

$\"SBFC_GoldLoan_Blog_LTV\"$
<\/span><\/p>\r\n2. Computing the standard valuation of loan<\/span><\/strong>
\r\n
Gold price also impacts how borrowers tend to avail of a gold loan. For instance, when a borrower applies for a loan, financial institutions compute and set a standardised gold value. That value is set only after weighing in the fluctuations and prevalent gold rates that have been ongoing for more than a month.<\/span><\/p>\r\n
However, financial institutions also factor in the predicted future gold rate trends to compute the standard value in some cases. Only after these are factored in does the lender evaluate the purity of the pledged gold.<\/span><\/p>\r\n3. Fluctuation in gold rates during an active loan<\/span><\/strong>
\r\n
Sometimes the lending institution asks gold loan borrowers to prepay a part of the ongoing advance. This usually happens when the gold rate fluctuates during the active tenure of a loan.<\/span><\/p>\r\n
For example, suppose a lender extends 75% of the pledged gold's value as a loan. However, the gold prices manifest a decline in value for the future, which pushed the eligible amount to be 80% of the value. The change in valuation is not in favour of the lender, so the lending institution may ask the borrower to pay the resulting marginal difference or provide more gold.<\/span><\/p>\r\n
However, you must note that if a borrower fails to comply with the new requirements, the lender might consider him\/her a defaulter. To avoid tainting your credit report, make sure to gain full clarity on this aspect.<\/span><\/p>\r\n
As an intending borrower, make it a point to keep an eye on the prevailing and possible trends that can influence the gold rates in the future.

$\"\"$ <\/span><\/p>\r\n4. Gold trend's impact on new borrowers<\/span><\/strong>
\r\n
A rising and declining gold rate trend impacts borrowers in different ways. In other words, when the gold trend rises, new borrowers will avail themselves of a higher value as a loan. Alternatively, borrowers applying for a gold loan during the declining gold rate <\/span>phase will get access to a lower value.<\/span><\/p>\r\n
This is how gold rate influences gold loans. Indeed, gold trends significantly impact the amount of money you would get sanctioned as a loan. However, as a borrower, you must also gain insight into the various factors that tend to influence the rate.<\/span><\/p>\r\n
To elaborate, some external factors that tend to influence the gold loan rate include:<\/span><\/p>\r\n\u25cf      <\/span><\/span>Inflation:<\/strong> Gold is a popular investment tool to hedge the impact of inflation. This is why the demand for gold witnesses a surge during high inflation. Accordingly, the rate of gold also tends to surge around such a phase.
<\/span>
\u25cf      <\/span><\/span>Central bank's stance:<\/strong> Another interesting observation is that when the gold supply goes through a downward phase, cash flow in the market increases. This comes as a reaction to the central bank's decision to procure more gold, which leads to a surge in the precious metal’s price.
<\/span>
\u25cf      <\/span><\/span>Demand for gold in the country:<\/strong> There is a massive demand for gold in India, but the supply of the precious metal often is not enough. The mismatch in demand supply leads to a surge in gold rate.<\/span>
\r\n
Having an idea about how these factors work in favour of the gold rate will allow you to time your loan or gold-related investment better.<\/span><\/p>\r\n
Conclusion<\/span><\/strong><\/p>\r\n
Fluctuation in gold rate, loan-to-value, and standard valuation of loans has a noticeable impact on gold loans. Similarly, external factors such as demand for gold in this country, rate of inflation, and central bank's stance are other crucial factors that influence gold rate, which in turn impacts borrowers.<\/span><\/p>\r\n
Keep up with such exciting gold loan-related topics by keeping an eye on our website. Also, if you wish to apply for a gold loan but are unsure about the procedure and requirements, feel free to contact us. Our Gold Genie will appear at your doorstep to walk you through an easy and hassle-free application process. <\/span><\/p><\/span>Read More <\/a><\/li>
7 Secret Benefits of Gold Loan<\/h3>

Gold loan is considered a more convenient financial product when compared to most other secured and unsecured funding options. This is primarily due to the several features and benefits accompanying the secured loan option.<\/span><\/p>\r\n
In fact, as per our view, taking out a gold loan is an effective way to access cash by leveraging the gold lying idle at home. <\/span><\/p>\r\n
But how can you make the most of this funding option? <\/span><\/p>\r\n
It’s simple! Find out about the secret features of the product that manifest as - gold loan benefits<\/strong> for borrowers.

Take a quick look below to understand what we are talking about!<\/span><\/p>\r\n

7 Top Gold Loan Benefits – At a Glance <\/span><\/strong><\/p>\r\n
The most popular benefits of gold loans are discussed below. Take a quick look to find out how can you benefit from them: <\/span><\/p>\r\n
1.     <\/span><\/span><\/span><\/em><\/strong>Low-interest rate<\/span><\/em><\/strong><\/p>\r\n
Compared to unsecured financial products, the gold loan interest rate is relatively low. This offers borrowers the opportunity to save a substantial amount on interest payout and ensures a low cost of borrowing. To ensure more savings on cost of borrowing, compare the gold loan interest rate levied by different lenders and select the lowest one with the most benefits.<\/span><\/p>\r\n
2.     <\/span><\/span><\/span><\/em><\/strong>Lack of dependence on credit history<\/span><\/em><\/strong><\/p>\r\n
You do not necessarily need to possess a credit history to apply for a gold loan, which is often not the case for other loans. In fact, most loan application approval depends heavily on the applicants’ credit history and<\/span> CIBIL score<\/span>. However, the case is different for gold loan borrowers because applicants provide gold as collateral to access funds. <\/span><\/p>\r\n
3.     <\/span><\/span><\/span><\/em><\/strong>High loan quantum<\/span><\/em><\/strong><\/p>\r\n
A gold loan is probably among the best options if you wish to access a high loan quantum. Some leading financiers can sanction up to 75% of the gold item’s value. Thus, providing access to a substantial loan amount. <\/span><\/span><\/p>\r\n
4.     <\/span><\/span><\/span><\/em><\/strong>Limited additional charges<\/span><\/em><\/strong><\/p>\r\n
One of the top gold loan benefits<\/strong> is that it does not accompany multiple charges. In other words, most leading financiers levy a nominal foreclosure or processing fee charges on gold loans. This allows borrowers to manage and repay their debt as per convenience, without incurring additional charges. <\/span><\/p>\r\n
5.     <\/span><\/span><\/span><\/em><\/strong>Simple documentation <\/span><\/em><\/strong><\/p>\r\n
Most other loans accompany thorough documentation, which often delays the verification process. However, you do not need to worry about that with gold loans. To apply for a gold loan, applicants need to submit only the basic documents such as KYC documents, proof of identity, and proof of address. Since the list of documents is short, the overall process does not take long to complete. <\/span><\/p>\r\n
6.     <\/span><\/span><\/span><\/em><\/strong>Quick processing and disbursal<\/span><\/em><\/strong><\/p>\r\n
The minimal documentation accelerates the verification process. Needless to say, this quickens the approval process as well. For instance, SBFC disburses gold loans in just 15 minutes due to the simple documentation requirement. This helps to access funds faster, allowing borrowers to account for their requirements with ease. <\/span><\/p>\r\n
7.     <\/span><\/span><\/span><\/em><\/strong>Flexible repayment options<\/span><\/em><\/strong><\/p>\r\n
The flexible repayment tenure also acts as a bonus for borrowers. For example, the gold loan extended by SBFC comes with a repayment of up to 3 years. This flexibility allows applicants to select a tenure that matches their repayment capability and helps settle the debt without straining the monthly budget. <\/span><\/span><\/p>\r\n

Conclusion<\/span><\/strong><\/p>\r\n
These are among the top gold loan benefits<\/strong> that make it an ideal funding option. Also, don’t forget to check the additional facilities to further maximise the benefits. <\/span><\/p><\/span>Read More <\/a><\/li>
Top 5 Gold Loan Mistakes<\/h3>
Check and understand gold loan risks before applying for it. Avoid the common gold loan mistakes<\/strong> for quick loan approval and cash access without delay. Apply for a gold loan at your doorstep through gold Genie.<\/a><\/span><\/p>\r\n
Is Gold Loan Risky? Avoid these 5 Mistakes<\/span><\/strong><\/p>\r\n
Gold loan is among the most popular secured financing options that allow leveraging gold holdings to access funds during a financial emergency. While applying for a gold loan is simple, half-baked knowledge about the application process and requirements is one of the biggest mistakes that could lead to loan rejection.<\/span><\/p>\r\n
To prevent that and simplify the application process, you should know about the common mistakes that can jeopardise your funding access.<\/span><\/p>\r\n
For the jumpstart, here are the most common gold loan mistakes<\/strong> to avoid at all costs.<\/span><\/p>\r\n
5 Top Mistakes to Avoid When Taking a Gold Loan<\/span><\/strong><\/p>\r\n
Avoid these mistakes to simplify the application and repayment process:<\/span><\/p>\r\n 1. Overlooking the interest type and associated charges<\/span><\/strong>
\r\n
Most borrowers check the interest rate and do not even try to find out its type, let alone other accompanying costs of a gold loan. This way, borrowers often end up paying more than what they bargained for when applying for a gold loan.<\/span><\/p>\r\n
As a borrower, it is vital to find out about charges such as foreclosure, processing, penalty, and auction charges in advance to gain a clear idea about the cost of borrowing. Additionally, it is equally important that you determine whether the lender is levying fixed or floating interest rates and which one would be better for you.<\/span><\/p>\r\n 2. Not comparing lenders and their offerings<\/span><\/strong>
\r\n
This gold loan mistake<\/strong> can inflate your cost of borrowing. Typically, individuals compare the interest rate and additional charges levied by leading lenders to choose the most one with the best features to offer. Skipping this part could rob you of the opportunity to save money on the cost of borrowing.<\/span><\/p>\r\n
Also, it could prevent you from finding the best deal in terms of features and repayment.<\/span><\/p>\r\n 3. A half-baked idea about the repayment structure<\/span><\/strong>
\r\n
Some financial institutions may follow more than one repayment structure.<\/span><\/p>\r\n
It is crucial to learn about them and understand different structures to pick one that suits repayment capability and needs the best. Ideally, there are four different types of repayment structures – EMI, partial payment, bullet repayment, and only interest EMI.<\/span><\/p>\r\n
Get in touch with us to know more about the different repayment structures accompanying gold loans and how different they are from one another.<\/span><\/p>\r\n 4. Being unaware of the acceptable gold object and its quality requirement<\/span><\/strong>
\r\n
Some applicants often do not feel the need to determine which quality and form of gold can be used as collateral. However, it is vital to determine the quality benchmark and the form of gold lenders accept to sanction a loan.<\/span><\/p>\r\n
Typically, lenders set a minimum purity criterion of 18-22 carat to accept gold objects as collateral. Essentially, only the <\/span>weight and purity of gold objects are weighed to determine their value.<\/span><\/span><\/p>\r\n
Similarly, most lenders accept gold jewellery and coins of only a certain weight and purity as collateral for a loan. Hence, before dropping in your loan application, find out about these requirements for smooth processing and minimising the risk of rejection.<\/span>

<\/span><\/strong> 5. Overlooking lender's credibility <\/span><\/strong><\/p>\r\n
Many borrowers often overlook the credibility of their lenders. Now, a gold loan is a secured financing option, meaning that creditors will recover the money lent in one way or another. However, the same ease does not come by for the borrowers if they fall prey to fraud. In other words, not checking lenders' credibility exposes borrowers to the risk of getting duped, where the lender does not release the collateral even after the borrowed sum is repaid.<\/span><\/p>\r\n
Besides these, applicants often ignore the terms and conditions laid down by the lenders for prepayment and collateral treatment in case of default. Ignoring the fine print often leads to missing out on crucial information. Hence, for a simple borrowing experience, avoid these gold loan mistakes<\/strong> by finding out all the requirements in detail.<\/span><\/p><\/span>Read More <\/a><\/li>
SBFC Finance pursues Profitable Growth<\/h3>SBFC Finance pursues profitable growth, posts 95% growth in PBT at Rs.115crs. Core Book grows at 37%, AUM at Rs. 3230crs in the third year of operations.

Monday, June 14, 2021: SBFC Finance, a new age MSME focused NBFC records a third straight profitable year by logging in stupendous growth in all its operating metrics.The company continues to invest in core states and grow deeper to reach out to the self employed in Tier 2 and Tier 3 towns.

Since inception in 2017, SBFC has been focusing on catering to small businesses to nurture the entrepreneurial ecosystem in India, has emerged as the only National Player in the Industry with 17 states through 125 branches with over ~ 76% of its network in Tier 2\/3 locations.

In an extremely challenging environment caused by the pandemic, SBFC has grown its core loan book by 37% to Rs. 2270 Cr and a PAT of Rs. 115 Cr in FY20-21, a rise of 95% from Rs. 59 Cr in FY19-20. The profits are after providing for an equal amount to its NPAs and cushioning for any possible increase in delinquencies in FY22.
The company has an active customer count of 58,000, a 45 % increase over FY20. It also disbursed 434crs in Q4, a growth of 125% on YOY basis.

Commenting on this development, Mr. Aseem Dhru, Founder and CEO, SBFC Finance said, “Building on our three core values of Innovation, Integrity and Excellence. We are looking at a compounded growth of 30% for next 3 years. We currently disburse more than Rs.150 crores on a monthly basis and are on track to achieve our vision of being India’s most trusted financial institution for entrepreneurs and MSMEs. Our prudent strategies and focus on driving profitable growth have helped strengthen our profitability quotient. From growth capital to overall profitability and asset quality, we have sustained healthy financials”.

Key Highlights

• SBFC Finance doubles its Profit to Rs 115 cr and AUM at Rs. 3230 cr
• SBFC Finance records third straight profitable year
• Emerges as the only MSME focused NBFC with Pan India Presence in 17 states through 125 branches ~ 76% network in Tier 2\/3 locations
• Increases branch network and employee headcount by 30% in FY21<\/span>Read More <\/a><\/li>
2019 Budget: Introduction of FKC for IRHY<\/h3>
The Government of India is a modern day Inverted Robin Hood. They quietly run a very successful scheme. Let’s call this initiative Inverse Robin Hood Yojana. Hitherto referred to as IRHY.<\/strong><\/p>\r\n
IRHY robs from the middle class and poor and liberally distributes to the rich. The instrument of former is taxation and instrument of latter are Nationalised Banks. These are the vehicles through which the objectives of this scheme are achieved.<\/p>\r\n
Vijay Choudhary, Nitin Kasliwal, Venkatram Reddy, Deepak Baweja, Jatin Mehta...do these names ring a bell? Well they should. Over a third of our money (assuming the highest tax bracket) is with them now and that too tax free. You may want to scroll down to see some of the beneficiaries of the IRH Yojana of the GOI.<\/p>\r\n
http:\/\/www.financialexpress.com\/economy\/wilful-defaulters-list-names-and-amounts-all-you-ever-wanted-to-know\/226791\/<\/p>\r\n
The modus operandi is simple. Loans have been given to the firms of these gentlemen, they have defaulted, these loans have been written off (mind you they are all classified as wilful defaulters by their lenders meaning they have the ability just do not have the intention. There is a hole in the net-worth of the PSU bank which is filled by the budgetary allotment every year. Just Nirav Modi has wiped off 27% of PNB net-worth to give you a sense of proportion. I am marvelling at such a clean transfer of wealth that is achieved with minimum fuss.<\/p>\r\n
The amount has now reached Rs. 1,00,000 crores or Rs.1 Trillion. This is daylight robbery and the commonality of these beneficiaries is that they live a high lifestyle, have properties all over the world, pose for page 3 pictures and you and I work to support their lifestyle.<\/p>\r\n
Next ahead, brace for Fraudsters Kalyan Cess (FKC) to pay for the IRHY<\/p><\/span>Read More <\/a><\/li>
Building a business is just a roll of the DICE<\/h3>
After building several businesses, the following is the learning. You hire for Competency and Integrity. Two things that cannot be taught or changed easily. Its the summation of all that has made the individual what he\/she is. Once in, it is the job of senior management to provide a clear Direction and an Energised environment. I am a firm believer that there are no bad soldiers, only bad generals so the job of the management is cut out. Get the right team in place, provide clarity on direction and speed and then provide energy through purpose, appreciation and celebration as well as review, censure and course corrections. Hire for Competency and Integrity and provide Direction and Energy - DICE to make an acronym simple to remember. For a commodity business like financial services, it is not so much about strategy but, execution..execution..execution.<\/p><\/span>Read More <\/a><\/li>
Economics<\/h3>
Last year was goldilocks scenario for private banks and NBFCs. Demonetisation pushed up deposit inflow and a Dovish monetary policy has seen a reduction of policy rate by 175 bps since Jan'16. This was due to slowing growth, benign inflationary expectations on the back of falling crude and commodity prices and it famously brought down interest rates. This, along with a hamstrung Public Sector Banking system aided private lenders loan growth. YOY loan growth in the system as on 30\/11 is 10% and deposit growth only 4% result of which Excess liquidity of Rs.4 trillion in April is now only Rs.80,000crores. Come March and we are likely to see a scramble for deposits. Inflation has picked up to a 8 month high, oil prices are moving up. FIIs have invested $16 billion in Debt in trailing 12 months at average yields of 6.5%. G-sec yields already at 7.28% As this moves higher, somewhere they will cut losses so any flow out will put pressure on rupee to head south. Economic Growth is picking up slowly. The central bank has already signalled a pause but the combination of the factors above means interest rates are headed north. 25-50 bps in 2019 is a possibility. As it appears to me, this is not an if, its a when. Fasten your seat belts, this roller coaster is on its way up.<\/p><\/span>Read More <\/a><\/li>
Employee or Entrepreneur: How do you recognise yourself?<\/h3>
Having tasted life as an employee and now as an entrepreneur, I can safely say that in the end there is only one difference between the thinking and hence their behaviour. An employee is effort driven and an entrepreneur is outcome driven. The former judges her own performance by the efforts she has made and the latter doesn’t give marks to self for efforts but only the outcome. It’s simply not enough to do your best but to do all that is required to get where you want. Do you work so that you have the means to do what you want or what you want is so important you don’t clock the hours? If business class travel, five star hotel stays, club memberships, big chauffeur driven cars, unlimited expense account and a secretary to handle all that is your thing, you have an employee mindset. If the joy of being able to do what you want is your driver, you are an entrepreneur. When you start looking at the weekend as an interruption and a time delay, you are possessed. It doesn’t then matter even if you are in a job, you then, are an entrepreneur.<\/p><\/span>Read More <\/a><\/li>
Every company is in a hurry to add new product lines chasing growth<\/h3>
Diversify. Every company is in a hurry to add new product lines chasing growth. Since 80 years, Parle-G biscuits soldiers on. The yellow wrapping, the Parle Girl, nothing has changed, no flavours have got added, no brand extensions. Yet even today, it has 20% share of the Rs.25000 crore biscuit market. The simple offering with entry level pricing available at every chai stall in the country has become more staple than snack. Glucose Biscuit dipped in tea became the food of the labour class; from factory to construction workers and from Agriculture linked migrant labour to the shop workers. Britannia came up with Tiger against Parle -G and added some seven variants to it. In the board room this sounds like a great strategy. An offering for each price point but can you imagine the distributor's cost for stocking up all of these? Is there a lesson for BFSI space here? Banks want to set up NBFCs, NBFCs want to become banks, Banks want to become wallets and wallets wants to become banks, Banks are buying MFIs and MFIs are becoming banks, Full service NBFCs want to do Gold Loans, Gold Loan NBFCs want to do Housing. Parle-G is not an exciting but an enduring brand. Sometimes it pays to be boring. Choose what you want your company to be? Exciting or Enduring?<\/p><\/span>Read More <\/a><\/li>
Payment banks will likely face an existential challenge<\/h3>
FY 19 the total investment in stocks by Indians will cross that of fixed deposits. A historic first. Indicates that new banks will struggle in times to come for deposit growth. The fight for CASA will intensify. Payment banks will likely face an existential challenge.<\/p><\/span>Read More <\/a><\/li>
Phones have got smarter!<\/h3>
In the 80s Madhavsinh Solanki then Congress CM of Gujarat came up with KHAM theory a vote bank of Kshatriyas Harijan Adivasi and Muslims. The Patels and upper caste Hindu votes moved to BJP. That was then. In 2017 Gujarat election the congress talked of Patel and OBC appeasement and BJP hindutva. How far have we come really? As Alphonse Karr said ‘The more the things change the more they remain the same.” Whoever wins Gujarat, Gujaratis have lost. It seems in all these years only the phones have got smarter!<\/p><\/span>Read More <\/a><\/li>
Quo Vadis, Mumbai?<\/h3>
Airport lounges are good places to catch up on reading, so there I was reading an article on how the vehicle population in Mumbai has increased 50% from two to three million over the past five years. With road length almost steady at 2000 km, it means the vehicle density per km is up from 935 to 1500 vehicles per km.<\/p>\r\n
Usually, I prefer to read the local newspaper of wherever am headed so I request for The Straits Times on board the aircraft, which curiously had an article that from 1st February'18, you cannot buy a private vehicle in Singapore. Two cities, same problem, so different responses.<\/p>\r\n
The fact that they were rationing permits called certificates of entitlement and auctioning them each year was well known. In fact the last auction went for nearly $50K for a small car permit for ten years. Now it has reached a zero point. No more addition of new vehicles on Singapore's roads. Period.<\/p>\r\n
To move to this point, over the past six years the Singapore Land Transport Authority has increased rail network length in this city-country-island nation by 30% and will further invest $28 billion in rail improvement and Bus subsidies over the next five years.<\/p>\r\n
Usually, I prefer to read the local newspaper of wherever am headed so I request for The Straits Times on board the aircraft, which curiously had an article that from 1st February'18, you cannot buy a private vehicle in Singapore. Two cities, same problem, so different responses.<\/p>\r\n
We seem to be oblivious of the crisis in front of us. The pollution, the wait in traffic and deterioration in the quality of life have reached endemic levels in our cities but we are doing nothing to alleviate it. We are waiting for a disaster and when that happens we will as usual respond with a botched up reactive plan not fully thought through.<\/p>\r\n
Every day of delay in putting a plan to end this is adding 700 new vehicles on the roads. Quo Vadis, Mumbai?<\/p><\/span>Read More <\/a><\/li>
RAROC . . . Lenders in India are Saying What\u2019s That?<\/h3>
As a banker, you are taught the concept of Risk Adjusted Return on Capital. Fundamental logic of lending is you price for risk. Sovereign return is taken as the risk free return and you seek a premium on it to justify the additional risk you are taking on the loan. The further away the borrower is from AAA, the higher the risk premium and hence the rate of the loan. Recent @CRISIL report says Personal Loans have a delinquency of 0.52% while Home Loans of 1.56%. Credit Cards are at 1.7% vs Loan Against Property at 2.62%. Interestingly, the rates of lending are inverse. The higher the default rates, the lower the interest rate! Sure, secured loans have lower Loss Given Default but recovery is a long drawn inefficient process and till that you carry the cost of impairment. Mis-pricing risk is one of the Seven deadly sins of banking. It seems that Indian lenders are pricing interest rates to ticket sizes. Lower the loan value, higher the rate and vice versa. Additionally, the longer the tenure of the loan, the lower is the interest rates thus lenders are totally missing the tenure risk premium they should be charging. Indian lenders are skating on thin ice here. Time we stopped pricing to competition and start pricing to risk?<\/p><\/span>Read More <\/a><\/li>
The Game<\/h3>
Today we sing a little ode to one of the favourite corporate games called “ the meeting”. This game is so precious it has its own arena called “the conference room”. It is here that we boil the ocean, stick to core competency, discover synergies, create paradigm shifts, move the needle, think outside the box. If not for this hallowed space where else will we do blue sky thinking, peel the onion, give a ball park number and have a thought shower? It keeps us fit for it is here we jog our memory, take a deep dive, hack into the customers mind, circle back, touch base, drill down or even thrash the issues out, we get the ball rolling even as we hit the ground running and if asked a real good question we simply take things offline. It is here we are taught the all important corporate trick to pick up the low hanging fruits. The game is so important that we keep minutes of the hours wasted and circulate them ASAP. This game protects bosses from the inconvenience of facing real telephone calls and the team calling them with problems as their secretary can tell them that boss is busy in an important meeting. Meanwhile they are winding up yet another inconclusive meeting by scheduling a follow up meeting to discuss why no work is happening around here.<\/p><\/span>Read More <\/a><\/li>
The Mother of all Challenges!<\/h3>
2.2 lakhs students take the JEE Advanced of which about 11000 seats are available at the Indian Institute of Technology which means about 5%. Harvard accepts about 5% applicants. MIT has an acceptance rate of under 8%.<\/p>\r\n
If like me you think these are the most difficult to get in places, you missed the recent news clip that made me sit up in my chair. A staggering 2.8 crore applicants applied for 90,000 vacancies at Indian Railway for positions of Motormen, linemen etc giving you an acceptance rate of 0.32%!<\/p>\r\n
If you do not count the probability of a human sperm fertilizing the egg, this officially makes Indian Railway the most difficult institution to get into. Next time you take a train please doff your hats in respect to those that made it through these odds.<\/p>\r\n
The youth of India are facing unemployment in public sector and unemployability in private sector and this is converting what has been touted as a demographic dividend into a demographic disaster. This is a clarion wake up call for the Government of India.<\/p><\/span>Read More <\/a><\/li>
The Players<\/h3>
Lets talk about some of the players All species need to have scientific name. Lets call this one “The Articulate Incompetent”. This is a guy who seizes the spotlight. I am not being a chauvinist, but trust me this one is always is a he. It doesn’t matter the topic and doesn’t matter that he is learning about it the first time by listening to other people discuss it right there. He has a Tharoorian flair, with the entire English language at his command and is able to pick up the random dots of information and string it into a very articulate commentary on the subject that sounds so authentic that he could contradict Einstein on relativity and for a moment even Einstein would leave the meeting with a doubt! When people who have never played the game start talking about it as an authority and get mistakenly accepted, they become dangerous. They interview well and hence tend to get hired. They speak well and hence tend to be popular in the short term. They put out big plans ahead, achieve little and always have a credible excuse why something did not happen. An organisation that can’t differentiate the talkers from the doers is doomed. Is it just me or have you spotted these articulate incompetents in your company?<\/p><\/span>Read More <\/a><\/li>
What Floats your Boat?<\/h3>
Opportunity is missed by most people because it is dressed in overalls and looks like work.’- Thomas Edison. The process is never glamorous, the finished product is. The process of construction is always full of dust, dirt, grime, sweat, late nights, fears, worries, doubts, small celebrations and the hard work of beating the odds. The Taj Mahal looked stunning when finished but the 21 years it took to construct it would have been anything but pleasant. To bring any imagined reality to life is always a story of relentless execution and a test of character. A movie that lasts an hour and half is full of smooth glamour. However, the process of movie making is mind numbingly boring. The process of building a company is joyful if work in itself gives you joy. It is joyful if daily challenges give you joy. Its joyful if overcoming irritants, delays give you joy. Its joyful if tackling slow progress, fighting setbacks and trouble from unimagined quarters give you joy. It is painful if you are in it for the result. The builder finds his joy in the middle of the chaos of construction. The world will however only admire the finished product. Either the process, the daily grind gives you joy or nothing will. What floats your boat?<\/p><\/span>Read More <\/a><\/li>
Why so serious?<\/h3>
“All Well?” A colleague asks trying to make small talk in the lift. “Oh Yes!” I say,\"All in the well. Deep in the well.” and his face relaxes as he bursts into laughter. Look at the faces at work. When I look around large offices, I want to ask them what Joker asks in the movie Batman, “Why so serious?” The Jews survived the holocaust through their sharp sense of humour. There is no greater stress buster known to mankind than humour. It does two things: It alters the lens through which you view the situation. The problem, it doesn’t solve but the mind frame through which you can solve the problem, it creates. Secondly, It puts your ego in check. There is nothing more humbling and beautiful than an ability to laugh at yourself. You don’t necessarily have to look serious to do serious work. Somehow we confuse seniority and responsibility with seriousness. From childhood we see symbols of authority serious. It needn’t be so. The company counts your remuneration in terms of CTC, don’t pay the price in terms of CTY - Cost to Yourself that includes BP, Diabetes, Ulcer and Cardiac Arrest. Pressure, stress, timelines are real. Your choices are humour or tumour. What do you choose?<\/p><\/span>Read More <\/a><\/li>"