It's not often that you get interest rates this low. For borrowers this is the best time to take a loan given that interest rates are the lowest seen in many many years.
If you are looking for a loan for that holiday, renovation or to meet other needs, we suggest that you go for the SBI Gold loan.
Why you should avail the SBI Gold Loan?
To begin with, gold loans are the cheapest. If you avail a personal loan to meet your needs you might end-up paying anywhere between 12 to 18 per cent as interest. State Bank of India is offering you gold loans at just 7.5 per cent. Of course, to avail the gold loan you need to pledge your gold. This means that after taking the loan you also need to pay it back or who knows you may never get back your gold.
The maximum loan amount that you can avail is Rs 50 lakhs. The gold loan also comes with a processing fee of 0.50 per cent of the loan amount.
Interestingly, if the application is done through SBI's YONO the processing fee is zero. Gold loans as we know are very swift and it's likely that the bank may disburse the loan amount on the same day.
At least gold loan companies like Muthoot Finance disburse the loan in 30 minutes provided that your KYC documents are in order.
As mentioned earlier, during this pandemic, many individuals are looking for loans and end-up with personal loans. That is not a good choice, as personal loans carry higher interest rates, higher processing fees and also the pre-payment charges can be as high as 4 per cent of the loan outstandings. So, at the moment gold loans from banks such as SBI look good. However, as mentioned earlier you need to payback the loan amount or you may never get back your gold.