You can avail a loan from a bank or an NBFC by pledging your gold. You can pledge your gold coins or gold jewelry and avail a gold loan from a bank. The gold has to be of purity 18-24 carats.
You can pledge only gold jewelry to avail a gold loan from an NBFC.
In India tradition demands that gold be collected and accumulated in the family. This means you can easily avail a gold loan with this family gold. You get an LTV (Loan to value) ratio of 75%.You get INR 75 for every INR 100 you pledge.
Gold and gold jewelry as collateral, mean lower Interest rates compared to a personal loan. Processing time is very quick.
Banks do not check for income and salary proof. Unemployed persons can also avail a gold loan. Banks do not check credit history.
You get up to 75% of the value of the gold or gold jewelry, pledged for the loan. Speedy sanctioning of loans.
You pay only the interest on the loan amount borrowed. Principal repaid at the end of the tenure.
If you reside in a rural area you can easily avail a gold loan from an NBFC (Non Banking Financial Company).
The documentation is much faster if you avail a gold loan from an NBFC rather than a gold loan from a bank.
Remember: The NBFC charges you a higher rate of interest on the gold loan than a bank. The interest charged by the NBFC could be around 22-24%.
Another benefit you get from availing a gold loan from an NBFC, is you have to only pay the interest amounts regularly on the gold loan.
You pay the principal (Borrowed amount) back, at the end of the term (tenure of the gold loan) and reclaim your pledged gold jewelry.
There are no processing charges and pre payment penalty, if you avail a gold loan from an NBFC.
Loan against gold ornaments is a product designed to provide liquidity against gold ornaments without having to sell them. Gold ornaments lying idle can be put to productive use by availing loan against gold ornaments. Loan will be sanctioned on submission of all the required documents and satisfactory assessment of gold ornaments. Few banks and NBFCs have started providing Gold Loans.
Gold loans typically are for the duration of one year and the duration can be further extended at the prevalent rate of that time. During the period you are supposed to pay the interest regularly.
You can avail Loan Upto Rs.20,00,000 & Upto 60% of value of gold
No EMI, service only Interest and enjoy the Loan facility
Lower Interest Rates
Simple documentation and fast processing
Overdraft limit varies depending on the market rate of gold
Interest rate is payable only on amount of the overdraft that you use
Minimum age of Applicant for loan application should not be less than 18 years
Maximum age of Applicant for loan application should not be more than 65 years
Gold ornaments should be of 18 carat purity and above
Gold Jewellery should be owned by you or any of your family members
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Nominal processing fees, as applicable, is payable at the time of disbursement of loan.
Normally it takes maximum 1 day from the time of filling application form for the loan to be disbursed.
You can make part-payment but the ornaments will be released only after the entire outstanding amount is repaid.
Yes, the loan can be prepaid without any prepayment charges.
You can repay the loan by cash, cheque, DD or funds transfer from an account. The ornaments would be released on realization of money by the Bank.
In the case of default in repayment, penal interest (as the case may be) will be charged around 2% per annum over the normal rate of interest.
The gold will be generally auctioned between 6-15 months after exhausting all means of recovery. However it changes from one bank to another bank depending upon their loan policies. To know more about Gold Loan, call us on 080 67974000
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