There are various benefits to using gold loans. These loans provide timely disbursements and attractive interest rates.
The interest rates for gold loans obtained by pledging gold are lower than those on other loans, ranging from 7.35 percent to 29 percent per annum. Gold loans are available from banks and other financial organizations in India, with loan amounts ranging from Rs.1000 to Rs. 1 crore.
Gold Loan Quick Recap
|Interest Rate||7.35% p.a.|
|Loan Amount||From Rs. 1,000- Rs. 1 cr.|
|Loan Tenure||Up to 20 years|
|Processing Fee||0.5% the loan amount + GST|
|Eligible For||Housewife/ Self Employed / Salaried|
Features of Gold Loan
Transparency Process: To begin with, the gold loan system is quite obvious; so, there are no hidden rules.
There is no debt burden: Following that, there may be instances where an applicant is unable to repay the loan amount. The applicant will not be in debt in this situation since the bank will just seize the jewelry.
CIBIL Score: Furthermore, banks are unconcerned about a person’s credit score. Individuals with a low CIBIL Score can also apply for a Gold Loan.
Low Gold Loan Interest Rate: The applicant will pay the lowest interest rate in comparison to other loans.
No Income Limit: There are no limits on the applicant’s salary or income; hence, anyone with any income range can apply for a gold loan.
Asset Protection: One significant advantage is that the applicant does not have to be concerned about the safety of the decorations because that is the responsibility of the bank, not the owner.
Quick Process: Because this is a secured loan, you may have your gold loan disbursed in as little as 30 minutes.
Minimum Documents: Finally, the applicant must provide relatively little paperwork in order to obtain a gold loan, making it a hassle-free service.
Eligibility: Anyone over the age of 18 and up to the age of 75 is eligible for the Gold Loan.
Gold Loan Interest Rate Government Banks
|Banks||Loan Amount||Interest Rate||Processing Fee|
|Bank of India||Up to Rs. 25 lakh||7.35% p.a.||Nil for Rs. 1 lakh and maximum up to Rs. 300|
|State Bank of India||From Rs. 20,000 to 50 Lakh||7.50% p.a.||Nil if applied through the YONO app 0.25% of the loan amount|
|Canara Bank||5,000 to Rs. 20 Lakh||7.65% p.a.||0.25% of the loan amount onwards|
|Punjab National Bank||25,000 to 10 Lakh||8.75% p.a.||0.75% of the loan amount|
|UCO Bank||Up to Rs. 10 Lakh||8.50% p.a.||Up to 0.2% of the loan amount|
List of NBFC Companies Gold Loan Interest Rate
|Muthoot finance||12.00% to 24.00% p.a.|
|Manappuram||14.00% – 26.00% p.a|
|HDFC Bank||9.90% – 15.95% p.a|
|ICICI Bank||10.50% – 16.50% p.a|
|Axis Bank||14.50% – 15.50% p.a|