You must proceed with eliminating massive debt if your New Year goal is to get rid of it in the year 2021. Immense interest rates come for personal loans and credit cards, since both are unsecured loans. You must glance at liquidating your savings to decrease your total debt load. You may also consider taking reduced rate loans to minimise the interest payable if it is not necessary or is not appropriate. The year 2020 was among the worst in the country for human safety and wealth. Nobody has been unaffected by the COVID-19 pandemic, regardless of status and financial standing.
Most eventually took personal loans and credit card revolving debt to smooth over the global crisis, winding up in the path of a debt cycle. One such luxury that may come to your assistance in situations like this is gold. Considering the same Punjab & Sind Bank provides a 7 percent interest rate on a Rs 5 lakh gold loan, with a reimbursement period of three years. Following the cheapest interest rate on Gold loan, Bank of India is second in our list that offers 7.35 percent rate. Gold loans at an interest rate of 7.5% is provided by the country's largest bank State Bank of India (SBI).
|Sr No.||Banks/NBFCs||ROI per annum in %|
|1||Punjab & Sind Bank||7.00|
|2||Bank of India||7.35|
|9||Punjab National Bank||8.75|
|10||Union Bank of India||8.85|
|11||Central Bank of India||9.05|
The massively effective non-banking financial companies (NBFCs) in this sector provide loans at notably higher rates. The gold loans from IIFL Finance come at an interest rate of 9.24 percent, which is the lowest of the NBFC gold loans. The gold loan rates of Bajaj Finance start at 11%, whereas the two major competitors in this sector, Muthoot and Manappuram, impose interest rates of 11.9% and 12% presently.
Study was conducted as of 24 Dec 2020 from the websites of the respective banks. Banks are mentioned in increasing order on an interest rate level, i.e. the bank/NBFC providing the lowest gold loan interest rate for different loan amounts. It is put at the top and at the last, the strongest. In the chart, the lowest rate provided by banks/NBFCs is taken into consideration. EMI is determined on the basis of the interest rate referred to in the table for the three-year term of the Rs 5-lakh loan. And for the EMI calculation processing fees and other applicable charges are considered to be zero.