SBI Gold Loan: Features, Eligibility, Interest Rates, Documents
SBI Gold Loan: SBI is India’s largest lender and ranked among the leading banks in the country. It offers various loans to its customers for meeting their different financial needs. SBI has total assets of above Rs.2529394.00 Crore. SBI is the only Indian bank which is ranked under 500 list of Forbes. SBI is the most searched bank in India. With a base of 17000+ branches SBI is accessible from most of the places in India.
SBI’s Gold Loan is flexible loan scheme of Gold Loan/Loan against Ornaments. The loan amount ranges between Rs. 10,000 to Rs. 20 Lakh. It charges interest rate of 12.50%. Bank’s existing customers can avail a loan upto Rs. 20 Lakhs by pledge of gold ornaments including gold coins sold by Banks. The loan amount can also be used for personal expenses like marriage, education of child, building a property, going on a leisurely vacation, etc. To avail a gold loan you are required to complete minimal paper work.
Features of SBI Gold Loan:
- Only the existing customers can avail this loan and cannot be sold to anyone else.
- The process of sanctioning the loan and disbursing of the amount is fast and simple.
- The rate of interest charged on the loan is low
- The applicant ends up receiving 75% of the value of his gold as bank maintains a margin of 25% of the value of gold.
- The maximum tenure for repaying the loan installments is 30 months for demand loan and 36 months for overdraft.
- The security required for availing the loan is the gold ornaments including gold coins which are issued by the bank
Eligibility Criteria For SBI Gold Load:
- The applicant must be above 21 years of age at the time of applying for the loan. So anyone who is aged 21 years and above can easily avail the loan if he or she matches the other mandated criterion.
- Anyone with a steady source of income can avail the loan which also includes bank employees and Pensioners.
Documents Required for SBI Gold Loan
Individuals who wish to avail a loan under this Gold Loan scheme need to satisfy a few basic eligibility criteria.
- Age– A borrower should be at least 21 years old in order to qualify for this scheme.
- Income– An applicant should have a steady source of income. He/she could be employed in any profession, having sufficient means to repay the loan.
- SBI customer– An applicant should be an existing customer of SBI, having maintained banking transactions with them in the past.
- Security– This loan can be availed only by offering gold as collateral.
- Gold owner– The gold pledged as security should belong to the borrower.
Documents required for SBI Personal Gold Loan
- ID Proof– A valid, government approved ID Proof (PAN card, DL, Voter’s ID, etc.)
- Address proof– A valid, government approved address proof (Utility bill, Passport, DL, etc.)
- Photographs– Two passport size photographs of applicant
- Form – Duly filled and signed application form
SBI Gold Loan Interest Rate:
|Interest rate||2% + 1 year MCLR = 11.05%|
|Minimum Loan Amount||Rs 20000|
|Max Loan Amount||Rs 20 Lacs|
|Gold Loan Margin||25%|
|Maximum Re payment tenure||30 months|
|Processing fees of hallmarked jewellery||0.5% of loan sanctioned|
Processing fees of non hallmarked jewellery
|For Loan amounts not exceeding Rs. 25000 – Rs. 250 + ST
For Loans amounts > Rs. 25000 – higher among 0.5% of loan amount sanctioned + ST or Rs. 500
*The above table is indicative and subject to periodic revision. Currently the bank charges a rate of interest on gold loan which is 2.00% above the 12 months MCLR. The MCLR is currently 9.15% per annum making the interest rate chargeable on gold loan equal to 11.15% per annum.
Fees and charges associated with SBI Personal Gold Loan
Unlike other banks, SBI charges a nominal fee to process an application, with this amount depending on the quality of gold offered as collateral.
|Gold Quality||Processing fees|
|BIS Hallmarked gold ornaments||0.50 % of loan amount, subject to a minimum of Rs 250 and maximum of Rs 500|
|Ornaments with no Hallmark||
SBI Personal Gold Loan FAQs
- What is the margin on a SBI Personal Gold Loan?
A 25% margin is applicable on this gold loan.
- What is the minimum amount I can borrow against my gold?
The minimum loan amount offered under this loan scheme is Rs 20,000.
- How can I avail this loan amount?
Loans can be availed either in the form of an overdraft or a demand loan.
- Are the repayment tenures different for Demand Loans and Overdrafts?
Yes, a demand loan has a maximum repayment tenure of 30 months, while it is 36 months for an overdraft.
- When does the repayment process begin?
The repayment process begins immediately, with a borrower expected to pay EMIs a month after the loan has been sanctioned. For example, if the loan was availed in January, loan repayment should begin by February.