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Gold Loan in India
Lenders including Banks and Non-Banking Financial (NBFCs) companies offers Gold Loan in India with a very affordable interest rates starting from 9.00 percent and goes up to 18 percent. The maximum tenure for the loan is up to 36 months. If you have gold jewellery as an asset, that earn no income as they lie idle at home or a Safe custody of Bank, you can unlock the value of these assets by taking a loan against the gold-jewellery. When pledges gold (including jewellery, ornaments and bank-issued coins) as collateral for taking a loan, it is known as a gold loan. Compare and apply online for gold loans for multiple lenders including HDFC Bank Gold loan, ICICI Bank, Axis Bank, SBI Gold Loan and for other leading banks of India.
Gold Loan Rate Per Gram by Purity – Eligibility Calculator
A lender can offer you a Gold Loan restricted up-to 75 percent of valuation of your gold. Below is the table with estimation of Gold loan per gram, a bank will offer you against gold jewellery of different purity levels – 12, 20 or 22 Carats.
|Gold Purity||Gold Rate/Gram- Last 30 Day Average||Eligible loan amount Gold Loan/Gram||Lowest Gold Loan/Gram|
The above table shows the method by which a lender will calculate your loan eligibility per gram gold loan for gold of different purity.
- Gold loan per gram offer of loan provider for 18 carat jewelry will be between Rs. 2,489 Rs. 2,872
- Gold loan per gram offer for 20 carat jewelry will be between Rs. 2,766 to Rs. 3,510
- Gold loan per gram offer for 22 carat jewelry will be between Rs. 3,042 to Rs. 3,510
Gold Loan Interest Rates Jul-2020
|Interest Rate||9.00 % to 18.00 %|
|Processing Fees||From 1 to 2.00% + GST|
|Tenure||Minimum 3 Months to 36 Months|
|Loan Amount||Rs. 25, 000/- to 3.50 Crore|
|Minimum and Maximum Age||Minimum Age 18 years & Maximum Age 70 years|
|Gold Value to Loan Amount||From 60 to 75 percent of current market rate of Gold|
|Eligible Purity of Gold||18 to 22 Carat Gold Only|
Features and Benefits of Gold Loan
- Interest Rates Gold Loan – Banks and other financial institutions offer lower interest rates on Gold loan compared to mortgage loans, Personal loans or unsecured business loans.
- Money taken as Gold loan can be used for multiple purposes- No end-use binding loan taken, lenders usually don’t track, end use of the money taken as gold loan. most often borrowers take gold loan for expansion of business to personal use like marriage in family or higher education of a family member.
- Special Scheme – Banks and other FIs, offer special schemes to farmers on gold loan like moratorium of interest payment and bullet payment options.
- Minimum Documentation – Gold loan can be given up to certain loan amount without any financial documents of the loan applicant/s. For example, HDFC Bank offers Gold Loan up to Rs. 15 Lakh without any financial documents of borrowers.
- No Foreclosure Charges – Leading gold loan lenders offer zero foreclosure charges after 3 months/ 3 EMIs are paid on loan.
- Loan up to 80 percent of Valuation– Lenders offer loan up to 80 percent of the valuation of the gold, subject to purity of the gold.
- Secured Loan -Gold loans are secured loans as the gold being offered is taken as collateral and can be taken by the lender if the loan is not paid back.
- Short Term Loans - Generally, a lender offers it for a tenure of up to 36 months maximum.
Gold Loan Rate of Interest
- Gold loan rate of interest varies from 9.50 percent and goes up to 18 percent.
- Rates offer under the scheme are reducing and calculated annually.
- In some of the lending institutions interest rate depends on size of the loan amount, you may get a lower rate of interest for higher loan amount.
- Gold Loan offered by Banks is a secured type of loan, money is given to you by pledging your gold and keeping it in Banks safe custody.
- Loan Amount can be funded from Rs. 25000 to up to Rs. 3.5 Crores.
- Maximum tenure a bank or NBFC offers for a gold loan is 36 months.
- No income documents required for gold loan up to Rs.10-15 lakhs, for higher loan amount banks may ask for your financial statements.
- Over the counter loans (OTC) - you can walk-in to a bank’s branch with the gold to be provided as security, post submitting the application form and gold, it will take 45 minutes to maximum 1 or 2days for the money to get disbursed into your account. Generally, it takes little more time for a loan amount above Rs. 10 to 15 Lakhs.
Gold Loan Eligibility Criteria
- Age of Gold Loan Applicants – minimum age required is 18 and maximum is up to 70 years.
- Eligible Profiles– Farmers, traders, salaried, self-employed professionals or businessmen can apply for gold loans.
- Gold Purity – Gold ornaments should range between 18 to 24 carats.
Gold Loan – Documents Required
|Document||Salaried Individuals||Self-Employed Individuals/Professionals|
|Identity Proof||PAN Card/ Valid Passport/ Driving License.||PAN Card/ Valid Passport/ Driving License.|
|Residence Proof||Valid Passport Copy/ Electricity Bill/ Rental Agreement||Valid Passport Copy/ Electricity Bill/ Rental Agreement|
|Income Statements for Loan Above Rs. 15 Lakhs Loan Amount||-3 Months’ Salary Slips -Form 16/ ITR||Income Tax returns, computation of income, Balance sheet with Profit & loss account.|
|Bank Statements||6 months Bank statements of salary account||12 months’ bank statements of current account/Business profile etc.|
Gold Loan – How It Works?
Unlike home loans or loan against property, a gold loan is a short-term loan and the repayment period can range from one month to maximum three years. You offer the lender your gold to take a gold loan from Banks/NBFC - the lender gives you a loan against your ornaments after the evaluation of its purity. The lender will usually not give you the loan up to the full value of the loan, but generally you can get up to 80% of the value. You pay only interest on the loan during the term of the loan and at the end of the tenure, you repay the loan and can take your gold back from the lender. Due to rise in gold prices, the gold loan has become quite popular among the middle-class Indians in urban and rural India. Many nationalised banks, private lenders and financial institutes have started providing this loan at attractive rates of interest. This loan is a good option for instant cash requirements and does not depend on your credit history or income
Gold Loan – Fees and Charges
Other charges associated with gold loans are as follows:
- Processing fee -lenders charge some part of the loan amount as the processing fee. This fee can be anywhere between 1-2% of the loan amount plus GST on fees amount.
- Valuation charge -These charges are to be paid by the borrower of gold loan paid to the valuer of gold to be offered as security. These charges are specific to the borrower by the lender at the times of sanction of the loan.
- Late payment penalty - Most of the service providers charge late payment penalty on delayed paid of interest of the loan or EMI.
- Pre-payment penalty-Most of the lenders do not charge penalty for repaying the loan before the tenure, but we advise borrowers to conform the same before taking the disbursement of the loan.
Gold Loan Lowest EMI
Your gold loan EMI on loan depends upon the factors like loan amount, interest rates and loan tenure. At the lowest interest rate of 9.50%, the lowest EMI works out to be Rs. 2,560 per lakh loan amount for 4 years:
- The higher the loan amount, higher will be the EMI
- Higher interest rates lead to higher EMIs
- EMI reduces in case of high loan tenure and lower loan amount
Gold Loan Process
The process of getting a loan against gold is as follow:
|Simple Steps||Actions||Details and Descriptions|
|Step 1||Check Eligibility and Select Bank||Before applying for a gold loan, we advise you to check your gold loan eligibility, you can check your eligibility at www.MyMudrafinancial.Com a loan comparison site. Gold loan eligibility is calculated on the basis of weight of gold, purity of gold, LTV ratio and current market value of gold. Select the bank that offers the maximum loan amount at lowest interest rates, processing fees and foreclosure charges before yours proceed.|
|Step 2||Apply for Loan||After you finalised the bank, you can apply for a gold loan offline by applying at www.MyMudrafinancial.Com, the bank's and MyMudrafinancial representative will call you to confirm the details and fix an appointment for you at the Bank Branch.|
|Step 3||Bank Branch Visit||You walk into the Bank Branch with basic KYC documents and gold.|
|Step 4||Loan Application Form Submission and Documents Verification||
-Bank Officials will verify the required documents.
-Get loan application filled up
- Verify the required documents
|Gold Purity Check||After the documents verification, you have to submit the gold to the bank. The designated authority of the banks checks the purity of the gold (18 to 22 carat) and weighs it based on the market value of the gold|
|Step 5||Loan Disbursement||Post Verification of the documents and purity check of the Gold, Bank authorities will get an agreement signed by you after which the loan is disbursed into your bank account.|
Gold Loan FAQ’s
- What is the interest rate applicable on gold loan?
Interest rate of any loan varies from lender to lender, since it is a secured loan it comes with lower interest rates compare to Personal or small business loan. the interest rate varies from 9.50 to 18 percent.
Why to Choose Gold Loan?
During the time of emergency requirement of funds, gold loan can be raised within 30- 45 minutes of application for the same. Below are the key points why choose Gold Loan?
- Gold loan is easier to get approved and money into your account within 45 minutes’
- Gold loans are multipurpose-loan where the amount can be used for any need as there are no restrictions on the usage of this loan.
- Borrower also get high loan to value as the banks consider 75% of the gold value as the loan, some of the NBFCs go up to 90%.
- These are short term loans as the tenure ranges from few days to years depending upon the borrower’s repayment capability.
- Most of the lenders do not charge any pre-payment penalty on gold loans.
- These types of loans are preferred over other loans as they require minimal documentation.
- Flexibility of repayment - the loan can be repaid in many ways as per the convenience of the borrower making it popular among other loans.
- Flexibility on foreclosure charges.
Points to Check Before Taking a Gold Loan
Below are the very important points you should keep in mind before going for a gold loan:
- An asset like gold has an emotional value in India. Providing it as collateral means taking a risk of losing your gold in case to you fail the pay the loan. Think carefully about your repayment ability before you apply for a gold loan.
- There are several lenders offering attractive loans. Study various lenders and choose one with a good reputation. Gather all the gold loan information available in the market before going for any lender.
- Check the quality of the loan as gold above 18K value is accepted by the lender. If your gold fails, the purity test you loan might get rejected by the lender.
Why Apply for a Gold Loan with My Mudra FinCorp.Com?
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|Online to Offline Services||My Mudra FinCorp, offers its services online and offline - with the help of its direct teams, lending partners and associates. MyMudraFinCorp has capability to serve you in 1400 plus Cities of the country.|
|Compare Loan Offers Before Applying||Before applying online for any loan, unlike other loan portals or loan comparison sites, MyMudraFinCorp helps you to understand every single detail of the loan. It helps you read complete information of the product you are interested to apply and borrow. Only after you are completely satisfied with the features and benefits of the loan product you can apply online for a loan.|
|Special Schemes & Offers||My Mudra FinCorp, offers special schemes, benefits and other advantages to its customers. Check with MyMudraFinCorp representative for the same.|
|Other Terms & Conditions||Other Terms and Conditions as per Bank and NBFCs terms, conditions and policies.|