How beneficial is it to take a gold loan?
Gold loans are available by some government and private sector banks. You can take cash by pledging gold ornaments, coins etc. After that, after paying the money, the pledged jewelery or gold customers can withdraw. Interest has to be paid on the amount of gold loan. Gold loan has lower interest rate than personal loan and other loan. You will not need a credit history for this. No certificate or guarantee is required to take a gold loan. This loan is available immediately.
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You can take gold loan from bank and NBFC. However, there is a big difference between the two. Bank can offer better rate of interest than NBFC. At the same time, NBFCs give loans mainly against gold, they can give loans quickly and immediately. Not all bank branches can have this facility.
For example, suppose a borrower has a 20 gram gold necklace that he wants to pledge. Both the bank and NBFC provide 75% of the value of gold to the borrower. If a bank tells you the value of 10 grams of gold is ₹ 46,500, then NBFC can give it more value. Lenders accept a minimum of 18 carat purity. Most lenders cannot consider gold below this purity. However, you can pledge jewelery and gold coins.
In this, you will get many repayment options. You can choose any of them. You can pay in the same EMI or you can pay interest only during the loan term and the lump sum principal payment at the end. Banks charge interest on monthly basis in bullet repayment. These are for short tenures of six months to a year.
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Know gold loan interest rates
Manappuram Finance – 12.00% interest rate and loan amount – 1500 to 1 crore 12
Muthoot Finance – 11.99% interest rate, loan amount – 1500 to 50 lakhs
Punjab National Bank – 8.65% interest rate and loan amount – 25000-10 lakhs
State Bank of India – 7.50% interest rate and loan amount – up to 20000-20 lakh rupees.
Axis Bank – 13 interest rate and loan amount – up to Rs 25000-20 lakhs
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Keep these things in mind
- Discipline regarding gold loan repayment is important. If you do not pay on the scheduled time, then the lending bank can impose a penalty of 2-3 per cent.
- If you do not pay the EMI of more than three gold loans, then more penalties may have to be paid.
- The document on which the finance company signs you at the time of giving the loan, mentions the condition that if you do not repay the EMI of the loan for 90 days, then the bank pledged your gold to recover your outstanding amount after the grace period Can sell
- Many financial institutions charge processing fees while giving loans. Penalty is charged on pre-payment.
- Processing fees can be up to a maximum of 0.5-2 per cent of the loan amount. Many banks also take money in the name of valuation charge. Before applying a loan, find out about it.
Documents required for gold loan
- PAN / Passport / Aadhaar / Driving License or any other identity card.
- For address proof, you have any one of Aadhaar card / electricity bill / telephone bill / water bill / ration card.
- Many banks ask for passport or driving license to check your signature.
- Along with this, passport size photo is also necessary.