Kartnataka
  • July 3, 2023
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Become a Shop Owner: Expert Advice on How to Start and Grow Your Business?

Doorstep Gold Loan Schemes

Starting a business is one of the most important and rewarding undertakings one can have. But where should one start? There are various ways to approach starting a business, with many critical considerations. One of the most important considerations that a business owner cannot do away with is funding, which is the backbone of any business. For a business owner, looking for reliable funding sources is important; hence opting for a gold loan for small business owners is one of the best options to consider.

Shop owners of all sizes increasingly turn to various types of gold loans for their businesses to fulfill their short-term capital requirements. Business owners with potential consumer interests often fail due to insufficient funds to fulfill orders. This is where applying for a gold loan for small businesses is one of the most popular solutions for raising funds. A gold loan can help establish, expand, and maintain a business. Let’s have a look at some of the best practices for growing your business using a gold loan, highlighting its advantages, considerations, and tips for success.

Starting a Small Business Using a Gold Loan

To start a Grocery shop, or a businessowner needs to plan it carefully. Some of the essential steps of starting a shop include:

  1. Conduct Market Research
    One of the most crucial steps involved in starting a business is doing thorough market research. This will give you an idea of your business’s market dynamics and sustainability. Take a quick look at similar businesses around you and how your business will stand apart.
  2. Identify the Target Audience
    Next, identify who your target audience would be. Having a strong base of loyal consumers is always beneficial for business owners. Hence, run a thorough analysis of which audience base you are targeting before starting a shop.
  3. Selecting a Store Location
    It must be noted that selecting a store location is a long-term capital investment; hence it must be a really thought-through investment. A good store location is a focal point of attracting customers to the outlet, which can even impact your consumers’ buying habits.
  4. Obtain Required Licenses and Permits
    Finally, it is important for all business owners to obtain the required licenses and permits to ensure that their business is not involved in illicit activities. The various licenses and permits help authorities track when and where the business or trade is being conducted.

Advantages of Gold Loan for Starting Your Business

For centuries, gold has been a traditional asset in Indian households that has stood the test of time. In terms of financial assistance, the most common advantages of gold loans to open a grocery storeor run its day-to-day expenses include:

  1. Easy Availability
    Over the years, gold loans have become one of the most accessible and widely available financial tools any borrower can use. With simple and quick loan processes which require minimal documentation, gold loans have become a favorable option for shop owners looking for immediate funds.
  2. Flexible Repayment Options
    Lenders often offer flexible repayment options to attract borrowers of all kinds. The various repayment options allow you to choose the one that suits your business’s cash flow requirements.
  3. No Need for a Good Credit Score
    Since gold loans are secured against the value of your pledged gold, this eliminates the need for a strong credit history or collateral.
  4. No Income Proof
    Additionally, borrowers are not required to submit income proof to be eligible for a gold loan. This is due to the fact that gold loans are termed ‘secured loans’; hence no income proof is required.
  5. Minimum Due Payment
    When business owners face financial difficulties and cannot make their essential payments, an option known as the minimum due option may be presented. Customers can keep their loan accounts open by making modest installments with this option. The payment will contain a small fraction of the main amount as well as a portion of the interest, ensuring that they are making some effort toward meeting their commitments.

Tips for Utilizing Gold Loans Responsibly

When you avail of a gold loan to fulfilling your short-term financial needs, timely and diligent repayment becomes your utmost priority. The various repayment methods include:

  1. Regular Equated Monthly Installments
    Regular monthly interest payments are one of the most preferred repayment options most borrowers choose. Opting for periodic payments instills discipline, where a borrower can repay both the interest and principal periodically. This way, repaying the gold loan by paying monthly payments becomes easier.
  2. Make Bullet Payments
    Bullet payment is a simple arrangement of repaying the gold loan in a single shot upon loan maturity. Sometimes, due to unexpected circumstances, periodic payments may not be possible for certain business owners at times. Hence, bullet payment works well, when the borrower has the capacity to repay the entire outstanding amount in one go.
  3. Preclosure
    If a business owner has the capacity to repay the loan amount before the loan maturity, then Preclosure is the best option for such individuals.

Successful Business Owners Who Utilized Gold Loans

When it comes to real-life examples of business owners who got benefitted from gold loans, Muthoot Finance is one name that stands apart. Here are some real-life inspiring stories of influential individuals who used gold loans to embark on their entrepreneurial journeys.

Mushroom Farming Business Owner from Delhi

Hailing from Tigipur, a small village in Delhi, is a farmer who is indulged in mushroom farming for the past 27 years. He faced many financial challenges to become a successful mushroom farming business owner. This is where Muthoot Finance helped him realize his dreams. He took a gold loan of INR 6 lakh from Muthoot Finance, which helped him expand his mushroom farming business and also gave employment opportunities to almost 40 to 50 individuals. Not only this, but his yearly turnover also increased from mere 15,000 kgs to approximately 1,50,000 kgs.

Dairy Farm Owner from Rajasthan

A 61-year-old dairy farm owner hailing from Rajasthan who started her dairy business after learning about gold loan schemes from Muthoot Finance. To become financially independent and contribute to the day-to-day expenses of the household, She approached Muthoot Finance and took a gold loan of INR 2,00,000 to start her own business. With this money, she bought a few cows to start her business. Within no time, she became a proud owner of a dairy farm spread across 3,000 yards of land.

Hotel Business Owner from Madurai

A hotel business owner from Madurai was always determined not to work under any business owner since his college days and open a hotel one day. Due to financial constraints, he had to work in a private company whose earnings didn’t make ends meet. That’s when his childhood friend recommended applying for a gold loan from Muthoot Finance. Today, he is a proud hotel businessman who is making big strides. Within no time, he was also able to open another hotel in Coimbatore, and since then, there has been no turning back.

Needless to say, a gold loan is one of the most simple and beneficial financial tools any business owner can apply for if they have enough gold available to them. The various gold loan schemes introduced by Muthoot Finance are an effort to provide support and financial inclusion for all sections of society, especially individuals with limited means but unlimited aspirations. Over the years, Muthoot Finance has helped millions of individuals get easy and instant access to financial credit and realize their dreams.

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