Gold loans are one of the most popular form of loan present in our country. We used to keep jewelries and other ornaments with us which are mostly made up of gold. These ornaments and jewelries have helped us a lot in our bad times. We have used them as an asset or collateral to fulfill the dreams or to tackle some financial problems. Gold loans are nothing new, as we are using gold as collateral for a very long time. Also check BOI Balance Enquiry, PNB Balance Enquiry, SBI Balance Enquiry and HDFC Balance Enquiry.
|Features||The process is very fast and secure Least possible documentation is needed Options of having lower interest rates|
|Eligibility criteria||Age must be in between 21 to 70 You must be either salaried or self employed|
|Application process (Online/Offline)||Application process is both online and offline, but you need to submit a physical KYC Fill the form, submit the gold, choose your tenure and rate of interest and collect the money|
|Documents Required||I’d proof, address proof, income proof, etc. Physical KYC is required Pan card|
We used to invest in gold, as the prices keep getting higher and higher. Gold loans are also considered one of the simplest of loans available in the market. It doesn’t require a lot of documentation and it is also completely hassle-free. This is also a secured loan, so the rate of interest is very low. As compared to personal loans and other unsecured loans, you don’t have to pay very high interest.
Also you don’t need to have a very good credit score to have a gold loan. Although if you wish to have extra money for your gold, the interest rates might vary form bank to bank. Also, the tenure for which you want your loan is important. As it is a secured loan, if you fail to pay the debt, your gold will be seized by the bank or lender.
|Lowest Gold Loan Rate||9.50%|
|Processing Fee||0.25% to 1% of loan amount.|
|Loan Tenure||1 day – 9 Months|
|Gold Loan per gram||₹ 11,556 depending upon the purity of the gold|
|Repayment Options||EMI, Bullet Repayment Scheme and Overdraft|
Some eligibility criteria is present which you must know before taking a gold loan. Gold loan is the most simple and hassle-free loan and it doesn’t require a lot of documents and information. As it is a secured loan, the interest rate is also very low, but it depends from bank to bank.
Eligibility criteria for a gold loan are:
- Your age must be in between 21 and 70
- You must be salaried employee or a self employed person
- You can either be a farmer, trader, businessman, office worker, or any
There are very few eligibility criteria, but you must remember that the amount which you will be given for your gold depends a lot of RBIs Loan to Value Ratio. At per RBI guidelines, it is set at 90%, and if you meet with the eligibility criteria then you can avail the maximum value of your gold.
Application process (Online/Offline)
The application process of a gold loan doesn’t require a lot of paperwork. It is a very simple and fast process, with the least possible documentation. It is also completely hassle-free and convenient. Anyone can have a gold loan, by simply following the instructions of the bank or the lender. There are many loan providers, who visit the house if you are unable to go to them. They are specially designed for old age people.
You can also fill the form online, but later, you need to visit the bank to submit your physical KYC. As this is a secured loan, they doesn’t take a lot of time with small details. They will have your gold as collateral and if you fail to pay the debt, then your gold will be seized.
Best Gold Loan Rates of all Banks in India 2021
|Bank||Interest Rates||Lowest EMI Per Lakh|
|SBI Gold Loan Rates||7.30%||EMI scheme not available|
|Muthoot Gold Loan Rates||11.99%||₹ 34,002 for 36 months|
|Manappuram Gold Loan Rates||9.90%||EMI scheme not available|
|HDFC Bank Gold-Loan Rates||9.50%||EMI scheme not available|
|Yes Bank Gold-Loan Rates||9.99%||₹ 33,890 for 36 months|
|ICICI Bank||9.00%||₹ 1,00,750 for 12 months|
|Federal Bank||8.50%||EMI scheme not available|
|Canara Bank||7.35%||EMI scheme not available|
|Andhra Bank||7.60%||EMI scheme not available|
|Axis Bank||13.50%||₹ 50,845 for 24 months|
|IndusInd Bank||11.50%||EMI scheme not available|
|PNB||8.75%||₹ 1,00,729 for 12 months|
|Fincare Small Finance Bank||10.99%||₹ 1,34,401 for 9 Months|
Now the application process for gold loan is:
- Step I – first you need to choose the bank or the lender with whom you want to do the deal.
- Step II – them either visit at their place or call them to your house, but they will only come to your house if your are old or disabled. You can also fill the form online.
- Step III – later, you need to submit all the documents and you have submit a physical KYC is well.
- Step IV – select the tenure for which you want the loan and the rate of interest.
- Step V – once all your documents are verified and your gold is checked, your credit will be approved.
There are some documents which you need, if you want to get a gold loan. These documents are also necessary for the security of your gold.
- Identify proof, like Aadhaar card, pan card, voter ID card, etc.
- Address proof, Aadhaar card, Ration card, passport, etc.
- Some other gold loan documents, which might be asked during loan approval
- Pan card, for your physical KYC
- Income proof – salary slip for salaried employees and bank statements for self employed person.
Frequently asked questions
How can I get a gold loan?
Every Person who is a resident of India and are above 18 years old can apply for a gold loan. All you have to do is provide the gold metal of 18 carats and above in the form of security and submit KYC documents to the bank.
Can I extend my Gold Loan?
Yes, customers can extend the gold loan if they are not able to repay the loan within the tenure. However, there are few lenders who allow gold loan extension and few also name it gold loan renewal.
How to choose the best gold loan, when there is a lot of option available?
Yes there are a lot of options available in gold loan, but you need to choose carefully. Some offers different interest rate, tenure and loan amount, so you need to choose the best deal out of all with all the proper care. Also check the service is well before taking loan.
Is taking gold loan risky of difficult as compared to other loans?
No that’s not the case at all. Taking gold loan is the easiest job to do. You just need to be eligible and you must have all the documents. When it comes to risk, every loan has some risk, but banks give enough time to you to repay the loan amount.