There are various options available to take care of a financial emergency. Such as taking personal loans, investing in financial instruments like the provident fund, mutual funds, etc.
But when it comes to borrowing from a financial institution, instead of taking a personal loan, one can also go for a gold loan. If you are planning to take a loan against gold, here is everything you need to know.
Gold loans are the fastest and simplest way to borrow funds for business or any other personal use. A Gold loan takes by pledging an article of gold by the borrower as collateral. A Gold Loan is a secured loan.
The loan amount is a certain percentage of the gold’s value. It can be repaid in easy monthly installments, and once the loan amount is fully paid, you get your gold articles back.
While borrowing the loan against gold, factors such as purity of gold, the value of gold on a particular day, and many other factors affect the gold loan. A gold loan effectively matches the sudden need for money, be it for your personal use or business purposes.
One can easily get information regarding gold loans from online websites.
Muthoot Finance is well known for providing loans against gold in India. They provide various types of services and thus ensure an affable experience for their customers.
Types of gold loans:
There are two types of gold loans that a lender offers:
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Gold loan
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Realty gold loan
A Realty gold loan is a gold loan exclusively for SBI Housing loan customers. A customer can avail a maximum amount of 20 lakh under this; the interest of loan against gold is 7.25% p.a.
CANARA Bank is offering a gold loan interest rate of 7.35% for 12 months, which is the lowest gold loan rate of interest; therefore, it is one of the best banks for taking a loan against gold presently.
Features of Gold Loan:
Sometimes we are in urgent need of money, so to meet one’s urgent needs, one can opt for a gold loan. If one has enough gold assets, they can go for gold loans by utilizing them as collateral.
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A loan against gold is the quickest and simplest way to meet one’s financial needs in comparison with other loans.
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A gold loan is a secured loan, so there is no need for well credit history.
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The time of loan payment is minimum
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The involvement of paperwork is instant and flawless.
Where to avail of the gold loan?
The loan amount that one can avail of from gold depends upon the lender. It may vary from one lender to another.
For instance, ICICI offers gold loans from Rs 10,000 to Rs 1 crore.SBI offers gold loans from 20,000 to 20 lakh. Whereas Muthoot finance offers a gold loan starting from Rs 1,500, and there’s no maximum limit.
Gold loan interest rate charged by bank and NBFC:
| Bank / NBFC | Gold Loan Interest Rate | Processing fee |
| SBI | 7.00 % to 7.50% | 0.50% + GST |
| Bank of India | 7.40% | Rs. 125 to 300 per lakh |
| Canara Bank | 7.35% RULE | |
| Bank of Maharashtra | 7.35% | Rs. 500 exclusive GST |
| Uco Bank | 8.50% | |
| Indian Bank | 7% floating | |
| Punjab National Bank | RLLR + 1.95 % | 0.75% loan amount |
| Central Bank | MCLR + 0.25% | NIL |
| Punjab Sind bank | 7.50% | |
| Federal Bank | 8.50% onwards | |
| United Bank | 1-year MCLR (9.35%) | |
| Dhanlaxmi Bank | 9.65% FIXED | |
| J & k Bank | One year MCLR + SPREAD=10.00% | |
| Karur Vyas Bank | 10.10% | |
| Indusind Bank | 10.5% to 16% | 1 % |
| Kotak Mahindra Bank | 10% to 17 % | UP TO 2 % |
| HDFC Bank | 8.98% to 17.23% | 1.50 % + GST |
| Bandhan Bank | Competitive rates of interest | 1% + GST |
| ICICI Bank | 10% to 19.76% | 1 % OF LOAN AMOUNT |
| South Indian Bank | 1 year MCLR + 3.65% | |
| Muthoot Finance | 24% TO 26% | |
| Axis Bank | 13.00% | 1 % + GST |
| AU Small finance bank | UP TO 24% | 1% of the loan amount |
| Manana Puram bank | MAX 29% | |
| City Union Bank | 9.50% | |
| Union Bank | MCLR+ 0.50% TO MCLR + 2.65% | |
| Bank of Baroda | 1 year MCLR + 2.65% | 0.50% + GST |
| Karnataka Bank | 849% to 8.79% |
Data source: Economics Times
EMI Calculator for calculating loan against gold:
Want to check your eligibility for availing of a gold loan? Check it by using the gold loan EMI calculator.
You are required to enter your details such as name, email id, contact number, type of gold, the need of amount, and some other details.
You can opt for another Gold Loan EMI Calculator to calculate Your EMI.
