What is Gold Loan?
Gold loan is a loan in which the customer pledges his/her jewelery to the bank and get the money within the few hours. It is an effortless way to get the money through a loan. Gold Loan is very secure for both the bank and customer because the bank can do anything which they want to do with the gold in case of no return of loan amount.
Gold Loan is best way for them who are in urgent need of money because gold loan provides you the loan amount in very less time.
Gold Loan Interest rates
Banks offer one of the lowest gold loan rates of 10.75 per annum, both for its existing bank customers as well as new borrowers. Gold loan interest rate varies by amount of loan, purity of gold and loan to value ratio.
Gold Loan Eligibility Criteria
In order to apply for a Gold Loan, you must be:
- A citizen of India.
- Gold should be of more than 10 grams.
- A farmer, trader, salaried or self-employed professional, or businessman can apply for gold loan.
- The applicant must be between 18 to 65 years.
- Gold should be a minimum of 18 to 22 carrots.
- The minimum loan amount is Rs.18000.
Benefits of Gold Loan
- Processing is fast: Process of taking a gold loan is faster than the other loans. It is beneficial for both the parties. Banks generally disburse the loan within the few hours.
- Interest rates are low: As this is secured loan, the bank provides lower interest rates as compared with the unsecured loan i.e. Personal Loan.
- No processing fee: Many banks don’t charge any processing fee on Gold loans.
- No income proof required: Generally, the lender doesn’t ask for the income proof as this loan is secured.
- Safety of Gold: Your gold will be safe in lenders vault, so there is no need to worry.
Documentation for Gold Loan
- First of all, Residence proof is required: The documents needed for the residence proof includes:(passport/ID card/ Voter card/ Aadhar card/ration/card/driving license) and if the applicants are living in rental apartments then has to submit his agreement, electricity bill on his name and address of the owner.
- Secondly, Identity proof is required: Verification documents especially need one among the following: (passport/ID card/ Voter card/ aadhar card/ration/card/driving license) any one of them.
- After then, Two colored passport size photos are required: (Applicants should not wear any glasses)
- Also, Signature Proof: Passport Copy/Driving License/Banker’s verification/cheque
Gold Loan Per Gram
Gold Loan calculator is used to calculate the gold loan per gram based on the total weight of the jewelry, level of purity, past 30 days average price of 22-carat gold and loan to value offered by your bank. As per today’s gold prices, the highest gold loan per gram against 22-carat gold is Rs. 3,044 per gram. Key variables that are required to calculate the gold loan rate per gram is passed.
Why Apply For Gold Loan
Most noteworthy, Gold Loan is a type of secured loan and, you have to pledge your gold ornaments to the lender, and you can take the loan amount from him. Process of Gold Loan is hassle-free; there is minimal paperwork in Gold Loan. An applicant can use the loan amount anywhere he wants to use.
FAQs About Gold Loan
How does Gold Loan work?
It is very simple to understand Loan on Gold. The Banks /NBFC provide you with funds against your gold ornament. The amount depends upon the gold weight.
Gold Loan is secured?
Yes, it is important to note that the loan on gold is secured. Because while taking Gold Loan the applicant put his/her gold jewelery into the bank’s locker as collateral.
What consequences can happen when you don’t repay a Gold Loan?
If the applicant is not able to return the gold loan on time, then the bank is liable to sell his gold ornaments.
Is it necessary to have a co-applicant to get Gold Loan?
No, there is no need of any co-applicant to get Gold Loan.
Is there any fee to pay for the Gold Loan?
It is necessary to pay the loan processing fee as well as Valuation fee.
Updated Gold Loan interest rates of Different banks.
| Bank | Gold Loan Rate |
| HDFC Bank | 10.75% |
| YES Bank | 10.85% |
| Axis Bank | 10.90% |
| SBI Gold Loan | 11.50% |
| ICICI Bank | 11.75% |
| IIFL Gold Loan | 11.75% |
| Allahabad Bank Gold Loan | 11.75% |
| Muthoot Gold Loan | 12.00% |
| Federal Bank Gold Loan | 12.00% |
| Manappuram Gold Loan | 12.25% |
| IDBI Gold Loan | 12.25% |
| PNB Gold Loan | 12.25% |