Gold Loan 2023 : While customers are not getting personal loans due to high demand in the banks, the loan is easily provided by banks to their customers. There are many banks and financial companies that are providing this loan to their customers for a maximum of 50 lakh. The most interesting thing about a gold loan, you can apply for a gold loan in any bank for any purpose including education, medical, family function, etc.
It is legal to apply for a gold loan for your financial purposes so you will easily get easily high amount loan from the bank under the Gold Loan Scheme 2023.
If you are also interested to apply in this loan, then you can read this article where we provide you with its eligibility criteria, important documents, the application procedure, and the interest rates on it.
What is gold loan ?
Its is kept in the category of secured loan. That means you need to deposit security deposit on that. In a way, you pledge your gold in the bank and get loan amount in return.
In comparison to Personal Loan, you get to see many types of facilities in this, about which we will talk further in the article.
However, it is important for you to know that when you pledge gold to take a loan in the bank, you are not given the entire estimated amount of gold. Generally, 75 percent of the amount of gold is provided to you as loan.
However, its is a precious metal, hence you have to pay very low interest on it.
Features of a Gold Loan
- The loan may be granted within ten minutes.
- The documentation process is simple, and most lenders will only request address evidence and identity proof.
- You can pay only the interest part initially and pay the principal sum when the loan matures.
- Your credit history need not be good to opt for a this loan.
- Loan Amount Per Gram of Gold Several lenders provide you loans on pledging gold at attractive interest rates. The loan amount varies depending on the weight of gold that you pledge.
- The loan amount per gram is a number that varies across banks.
Benefits of Gold Loan
- You do not need a good credit score to take a the loan. If you want, you can take it even against bad credit score.
- When taking a gold mortgage, the estimated amount of income and expenditure is already covered by the bank, hence your old or poor credit score is not taken into consideration.
- It is possible that you can easily get a loan even with a bad credit score.
Gold Loan Interest Rate 2023 [Low-interest rates]
If you have a proper source of income either you are generating your income from self-business or you are getting a salary, the bank will easily provide you at low-interest rates so you can purchase the gold or Jewellery or you can use this amount for financial purposes. The interest rate starts from 8.45% in the Central Bank, however, it will increase according to the condition of the customer.
Kotak Mahindra Bank is offering this loan with interest rates between 8% to 24%. SBI bank is charging a minimum 8.7% interest rate and they will also charge only 0.5% processing fees which is affordable for the customers.
However, if you are planning to purchase a the loan from any bank you should research it manually by visiting the official website or contacting the branch manager. The interest rates will vary according to the credit score, banking history of the applicant, amount of the loan, tenure of the rep payment, etc.
Gold Loan Amount 2023
Different banks are providing loan amounts according to their offers, SBI is offering a loan of 20,000 Rs and the maximum loan is 50 lakh in SBI. However, Canara Bank is offering a maximum of 35 lakh rupees loan on gold. While some banks are offering a maximum of 25 lakh loans. So you can apply according to your needs.
Eligibility Criteria for Low-interest rates Gold loan
- The age of the applicant should be between 18 years 70 years. However maximum age will be defined according to the different banks.
- The applicants should have a regular source of income.
- If you are purchasing gold then you should focus on the quality of the world as many of the banks are providing these loans to purchase 18 carat + gold loan.
- You will get the tenure of the loan between 12 months to 60 months according to the amount you are asking.
- The bank will also charge additional charges including interest rates, processing fees, documentation charges, etc.
Important documents required for gold loan
- The Aadhar card of the applicant.
- PAN card number and details.
- Bank passbook.
- The document to support gold purchase or jewelry purchase.
How to apply for a Low-interest rates Gold-loan 2023 ?
- If you want to get a Gold loan from the bank then you have to visit the branch to apply in the loan scheme manually.
- You have to contact the employees and manager of the bank and after that, you have to discuss the loan amount which you want to get from the bank.
- The employee will check your eligibility and verify your all details after that you will get a loan offer from the bank.
- If you agree with the terms and conditions you can contract the loan document between the bank and you.
- If you want a higher loan amount from the bank, then you have to submit collateral which will be submitted after repayment of the loan amount.
Gold-loan interest rates comparison chart
Below are the different interest rates provided by different banks on the gold. You can check them :-
|Name of the Bank||Interest Rate||Loan Amount|
|Axis Bank||17% p.a. onwards||Rs.25,001 to Rs.25 lakh|
|HDFC||11% p.a. to 16% p.a.||Rs.25,000 onwards|
|Canara Bank||9.60% p.a.||Rs.5,000 to Rs.35 lakh|
|Muthoot||10.5% p.a. to 22% p.a.||Rs.1,500 onwards|
|SBI Bank||8.70% p.a. – 9.80% p.a.||Rs.20,000 to Rs.50 lakh|
|Kotak Mahindra||8.00% p.a. – 24.00% p.a.||Rs.20,000 to Rs.1.5 crore|
|Induslnd Bank||11.89% – 16.00%||Up to Rs.20 lakh|
|Manappuram||10.90% p.a. to 26.00% p.a.||As per the requirement of the scheme|
|Bank of Maharashtra||9.30% p.a.||Up to Rs.25 lakh|
|PNB||8.65% p.a. – 9.25% p.a.||Rs.25,000 to Rs.25 lakh|
|Bank of Baroda||9.15% p.a. onwards||Up to Rs.50 lakh|
Why to choose a gold-loan ?
- Loans can be availed at low interest rates since collateral is being supplied.
- Aside from gold jewellery, no other security or collateral will need to be provided.
- The funds can be used for various purposes like a car loan or home loan.
- Minimal documents will need to be presented.
- Your credit history does not need to be good to avail the loans.
Factors affecting Gold-Loan Interest Rates
- If the price of gold is high in the market, the value of the gold ornaments or coins being pledged by you will also be high.
- Lenders will offer you a lower interest rate in such cases since the risk associated is low and if ,for some reason, you are unable to make the equalized monthly installments (EMIs), the lender can easily recover the outstanding amount by selling/auctioning the gold ornaments.
- Inflation : If the rate of inflation is high, the value of currency devalues and hence, people tend to accumulate more gold.
- Gold acts as a hedge against inflationary conditions particularly when they persist for a longer period. This, in turn, pushes the prices of gold higher and in such times if you wish to avail a loan, you may get lower interest rates from loan providers.
- Relationship with the bank : Most lenders offer this to their existing customers, although, in some cases, individuals who have no history with the bank can also avail the loan.
- However, existing customers of banks/lending institutions are typically in a better position to bargain for a lower interest rate.
FAQ’s : Low- Interest Rates Gold Loan 2023
Is my credit score have any impact on the interest rate of gold loan ?
No, loan providers will not take into account your credit score when you apply for this. If you are above 18 years of age and have documentation to prove your ownership of the gold, you can apply for it.
How to repay the loan availed ?
You can choose to repay this amount either by cash, funds transfer, demand draft (DD), or check.
How to calculate the loan interest amount ?
You can calculate the loan interest amount by decreasing the principal amount from the balance that is outstanding.
What are the eligibility standards to avail a gold loan ?
Indian citizens who are between the ages of 21 years and 60 years and are farmers, business individuals, salaried employees, and self-employed persons can avail a this loan.