Gold Loan: Documents, Interest Rates and Full Guide

Gold loan is an option in which you and we pledge our gold jewelery or coins in a bank or financial institution and give a loan against it. This is a secured loan, in which you are given money at low interest.

Gold loan is a safe and reliable option of financial assistance. In today’s post, complete information about gold loan has been explained in detail (how to take gold loan, companies or banks providing gold loan, interest rate, loan amount, period and conditions).

Features of Gold Loan

The following features of gold loan are mentioned below:
1. Low interest rates
Gold loan interest rates are lower as compared to other personal loans. Many banks and financial institutions decide the interest rate based on the customer’s profile and the market price of gold (Gold loan interest rates are explained further below).

2. Fast processing
The process of getting a gold loan is fast and simple so that you can apply for a gold loan at any time and get the loan immediately.

3. No processing fee
Many banks and financial institutions do not ask for processing fee for g.loan. You can get gold loan without any extra charges.

4. Tenure of loan amount
The time limit for taking loan against gold depends on the price of your gold. If the price of your gold is high then you will get more loan repayment period so that you can repay comfortably.

Loan amount:

While taking gold loan, the loan amount given depends on the amount of gold you give. You can get gold loan from Rs 50 thousand to Rs 1 crore.

Interest rates on gold loan

Interest rates on gold loan are offered by various banks and finance companies. Usually the interest rates range between 7% to 12% per annum but it depends on your loan amount, loan tenure, and the institution as many banks depend on your profile and gold value. Usually 7% to 12%. % annual interest rate

Gold loan companies

Many major banks and financial institutions offer gold loans in India. Some of these prominent names are:
1. Muthoot Finance: Muthoot Finance provides gold loans at interest rates up to 12%. Muthood Finance is one of the top companies in India in matters of gold loan from which you can easily take loan.

2. SBI Gold Loan: SBI Bank offers g. loan at interest rates starting from 7.5% to 9%, SBI is one of the top banks in India from which you can get a secure gold loan.

3. HDFC Gold Loan: HDFC Bank interest rates start from 9%.

4. ICICI Gold Loan: ICICI Bank offers gold loan with interest rates ranging from 8.5% to 10%. Taking loan from ICICI Bank is very important and simple.

5. Manappuram Finance: Interest rates at Manappuram Finance start from 11%.

Loan amount

The amount received in gold loan depends on the price of your gold. Generally, you can get a loan up to 75% of the total value of gold. For example, if you have gold worth ₹5 lakh, you can avail a maximum of ₹3.75 lakh.You can get a loan up to Rs. That means you will get a loan of 75% of your gold.

Loan period

The tenure of gold loan is flexible, which can range from 6 months to 24 months. Many financial institutions also offer you EMI option, in which you can repay the loan in monthly installments. Some institutions also offer the option to repay the entire loan in one go.

Advantages

• Fast approval: There is no lengthy process for gold loan. Your loan gets approved within a few hours,
• No extra charges: There are many types of banks which provide loans without any extra charges,
• Less documentation: Only some basic documents like identity card and address proof are required,
• Flexible repayment options: You can repay the loan in EMIs as per your convenience or make a lump sum payment at the end of the tenure,
• Offline Gold Deposit: Deposit your gold in the bank from which you are taking loan do,
• Safe option: Through this option you can keep your gold in a safe option

Document

• Aadhar Card, PAN Card, or Passport (ID Proof)
• Electricity bill or bank statement (address proof)
• Bank details (in certain cases)

 

Application process

1. Selection of bank or loan institution: Select the bank from where you want to take the loan,
2. Gold valuation: The bank will value your gold and will provide you the loan amount accordingly.
3. Loan Approval: After submitting all the documents your loan will be approved.
4. Receive funds: The loan amount is transferred to your bank account.
Note: Keep in mind that before taking a loan, you must compare the interest rate conditions and other important information of all the banks before selecting any one bank.

FAQs

Q1. What documents are required for gold loan?
You need identity proof (Aadhaar, PAN) and address proof (electricity bill or bank statement).

Q2. What is the interest on gold loan?
The interest rate on gold loan ranges between 7% to 12% per annum, depending on the company and the bank.

Q3. What is the repayment period of gold loan?
Generally the tenure of g. loan ranges from 6 months to 24 months.

In this way, you can choose this loan option to overcome your immediate financial problem and improve your financial condition. The gold loan process is fast, simple and secure, making it an attractive option.