new Delhi. During financial crises, any person has a variety of options. They can also redeem their investments in financial instruments such as personal loans or future funds, mutual funds etc. When it comes to taking a loan from a financial institution, in addition to a personal loan, the option of gold loan is much better if you are planning to take a gold loan, then it is very important to know about many things here. Let us tell you that the Reserve Bank of India had raised the loan limit from 75 per cent to 90 per cent by 31 March 2021 to meet the requirement of money in view of Kovid in the month of August.
What is a gold loan and where do I get it?
Gold loan is to take money in exchange for gold. Which is considered a secured loan. Where the money can be raised in the form of loan from bank or NBFC by giving gold jewelery such as gold and gold ornaments. The borrower is given a loan as collateral against this gold. This loan
In addition to banks like SBI, ICICI Bank, HDFC Bank etc., non-banking finance companies (NBFCs) also provide gold loan facility to individuals. NBFCs offering gold loans include Muthoot Finance, Manappuram Finance etc.
Minimum and maximum gold loan amount
Loan amount depends on individual and bank rules. For example, ICICI Bank offers gold loans between Rs 10,000 and Rs 1 crore. Whereas State Bank of India gives gold loans between Rs 20,000 and Rs 20 lakh. Whereas, Muthoot Finance offers gold loans starting from a minimum amount of Rs 1,500 without any maximum limit.
Gold loan period
The duration of the gold loan is also as per the lender’s rules. Where HDFC Bank offers gold loans with tenure ranging from three months to 24 months. The maximum period for repaying SBI Gold loan is 36 months. Muthoot Finance offers a variety of gold loan schemes that come with different tenures.
How much do banks and NBFCs charge on gold loan
|Bank or nbfc||Gold loan interest rate (in percent)|
|SB I||7 to 7.50|
|BOI||7.40 to 7.45|
|Canara Bank||One year ACLR 7.65|
|Bank of Maharashtra||7.50|
|Indian Bank||8.50 to 8.75|
|Laxmi Vilas Bank||8.80|
|PNB||8.60 to 9.15|
|Central Bank of India||7.15 to 9.20|
|Punjab and Sindh Bank||8.10 to 9.35|
|Federal Bank||Starting at 8.50|
|United Bank||One year ACLR 9.35|
|Karur Vysya Bank||10.10|
|IndusInd Bank||10.5 to 16|
|Kotak Mahindra Bank||10.5 to 17|
|HDFC bank||9.90 to 17.90|
|Bandhan Bank||10.99 to 18|
|ICICI Bank||10 to 19.76|
|South Indian Bank||11.90 to 12.40|
|Muthoot Finance||12 to 27|
|AU Small Finance Bank||Up to 24 percent|
|Manappuram Finance Limited||Maximum 29|
|City Union Bank||1 year MCLR 14.25|
|Union Bank||MCLR + 1.65% to MCLR + 1.65%|
|Bank of baroda||BRLLR + SP + 1.75%|
|Karnataka Bank||According to MCLR guidelines|
Which documents are required?
The bank or NBFC asks you to provide various documents to take a gold loan. Generally the required documents include proof of your identity like PAN, Aadhaar etc. and proof of address like Aadhaar, passport, voter-ID card etc. and your photograph.
What are the charges?
For loans such as home, auto and personal loans, the borrower usually has to pay the processing fee / fee to get the loan. While taking a gold loan, in addition to the processing fees, an applicant may be asked to pay for the valuation of gold which will be used as collateral by the lending institution. For example, HDFC Bank charges Rs 250 as the assessment fee for loans up to Rs 1.5 lakh and Rs 500 for loans.