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Planning To Avail A Loan Against Gold? Quick Tips To Apply For A Gold Loan
The popularity of gold loans has surged over the years as it is quite easy and swift way of raising required funds to meet your requirements whether it is personal or business.
The popularity of gold loans has surged over the years as it is quite easy and swift way of raising required funds to meet your requirements whether it is personal or business. You can avail gold loan against the competitive interest rates and easy terms. If you are keen to opt for such loans, you will have to pledge your gold jewelry or ornament and fulfill the easy eligibility criterion. The best thing of gold loan is that they are free from any complicated eligibility requirements as you can obtain necessary funds against the gold value that you have pledged.
Another key advantage that you get while availing gold loans is that you do not have to maintain a strong CIBIL score. The easy borrowing terms have made gold loans a famous option to finance your needs The eligibility criterion for opting for gold loans is that you just need to be 18 years and above and your work status should be salaried, self-employed, business person, farmers, traders, etc. The age requirement may differ with bank to bank. The minimum loan amount and maximum loan amount offered by various banks do not remain same.
Meanwhile, the amount that you may avail will depend on Loan to Value or LTV ratio given. The Reserve Bank of India has fixed a 90% cap on LTV for availing gold loans. When you fulfill the aforementioned eligibility requirements, you can easily obtain highest LTV against your gold value.
Documents for availing gold loans
You will have to submit some key documents when you avail a gold loan. These documents may include PAN Card, Aadhaar Card, Voter ID Card, Passport, Driving license, photo id card issued by government, and defence ID card, among others. You also need to give an address proof. For address proof, you can submit either your Aadhaar card, ration card, passport, bank account statement, voter ID Card, utility bill if any like electricity bill, water bill, and letter from an authorized person. The requirement for documents too vary from banks to banks. The documents required will be different from banks to banks.
How can you avail gold loans?
Gold loans can only be availed only against your gold jewelry. The requirement may differ from bank to bank. Some banks only accept jewelry while some accept gold coins sold banks. Some banks do not accept gold bars or gold coins for loan disbursal. It will differ from banks to banks.
How can you repay gold loan?
You can decide to pay gold loan interest either quarterly or on monthly basis and repay the principal amount at the end of tenor. It may differ from bank to bank. You may also choose to pay the entire interest at the beginning of loan tenor and repay principal sometime later. You can also avail the option of repaying the loan in regular EMIs that may include both interest amount and principal amount. This requirement may differ from banks to banks.
HDFC gold loan
The bank offers gold loans with easy eligibility requirements. You will be allowed to repay your gold loan in EMIs over a tenor of your preference. You can also repay only interest on the gold loan every month. With HDFC, the gold loan amount begins at Rs 25000 and a minimum loan amount of Rs 10,000 is available in rural markets. There are loan processing charges with the bank that is 1% of the disbursal. There is a foreclosure charge that is 1% plus applicable tax. There is a renewal processing fees of Rs 300 and some applicable taxes. The banks offer rates during the period of Jan 22 to March 22. The minimum interest rate is 7.55%, maximum interest rate is 15.75% and average interest rate is 10.48%. The annual percentage rate offered to customer during the tenure of Jan 22 to March 22 will be 7.55% for APR Minimum, 15.76% for APR Maximum, and 10.48% for APR Avg.
SBI gold loan
You can avail SBI gold loans simply by pledge of gold ornaments or gold coins sold by SBI. You just need to do minimum paper work with lower interest rate. SBI gives you a maximum loan amount of Rs 50 lakh and minimum loan amount of Rs 20,000. There is a processing fees of 0.25% of the loan amount with minimum Rs 250 along with applicable GST. You need to be 18 years and above and there is no requirement of income proof. Any individual with steady source of income can avail them. It can be a bank employee, pensioner, etc. The rate of interest for 1 year MCLR is 7.20%, 0.30 % spread over 1 year MCLR, and the effective rate of interest is 7.50%. You can call the bank's helpline number 1800-11-2211 for more information.
Axis Bank gold loan
Axis bank also offers gold loans ranging from Rs 25,001 to Rs 25,00,000. You can avail same day loan disbursement. You may choose the tenure from 6 months to 36 months. To avail these loans, you need to be 18 years and 75 years. When it comes to documents, you need to give signed application form, kyc documents, and post-disbursement document. The interest rate for 1 year MCLR is 7.35%, spread over 1 year MCLR is 6.65%, and effective interest rate is 14%.
