Gold Loan: What is Gold Loan? How Many Types of Gold Loan
Gold loan is also called loan against gold. The gold is given by the lender to the borrower against the gold. The borrower Mortgage the gold and get a loan from the lender. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold.
Read Gold Loan Kya Hota Hai in Hindi
The gold loan is taken in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday,etc.
BENEFITS OF GOLD LOAN
- Gold loans are good for the borrower.
- The gold loans are secured loans.
- The gold loans have fast progressed.
- It has lower interest rates.
- These loans do not have any processing fees.
- No income proof is needed for this loan.
- Credit score of the borrower is not necessary.
TYPES OF GOLD LOAN
Here we have mentioned various types of gold loans.
MANAPPURAM GOLD LOAN:
In the manappuram bank the borrower can apply for a higher loan amount depending on the purity and net weight of the gold pledged. The guaranter is not required by the lender in this bank.
SBI GOLD LOAN:
The SBI Bank offers three types of gold loans such as Gold Loan, Liquid Gold Loan, Bullet Repayment Gold Loan. The repayment tenure is thirty six months for the gold loan and the liquid gold loan. The repayment tenure for the bullet repayment gold loan is eighteen months. In SBI bank only the person of age 18 years and above can apply for gold loans. This bank can also provide joint and single account gold loans.
ICICI GOLD LOAN:
In ICICI Bank the gold is kept safely in a vault. In this bank for the application of the loan minimal documentations are required. The loan application is approved easily and the loan too.
AXIS GOLD LOAN:
The most important benefit of taking a gold loan from Axis bank is that the gold that is pledged by a borrower is kept in Axis Bank’s bank vaults. The gold loans are given against the gold ornaments and gold jewelleries by this bank.
BANK OF BARODA GOLD LOAN:
In the bank of baroda gold jewellery, gold coins and other gold ornaments are accepted for the gold loan. The bank of baroda only gives gold loans to persons who are 18 years or above that age. Not so much documents are required in this bank, minimal documents are required for the gold loan.
PNB GOLD LOAN:
The PNB bank’s gold loan does not take any prepayment charges. The application process is very convenient. For the loan security only twenty two carat gold is accepted by the bank. The Documentation charges Rs.500.
KOTAK MAHINDRA BANK GOLD LOAN:
In Kotak Mahindra bank the gold loan is very good. The gold in this bank is kept in a safe and secured environment. The benefit in this bank is that minimal documents are required for the gold loan. The gold loan is taken on an instant basis.
FEDERAL BANK GOLD LOAN:
The federal bank gives gold loans on the gold ornaments that have a purity of 22 carats. The loan has instant sanction. The federal bank does not take any hidden charges of the gold loan.
CENTRAL BANK GOLD LOAN:
The central bank gives gold loans by hassle-free process of application. At least twenty two carat gold is accepted for gold loan in this bank. The Repayment tenure not to exceed 12 months from the date on which loan was sanctioned.
DOCUMENTS REQUIRED FOR THE GOLD LOAN
- Identity proof such as aadhar card PAN Card,Driving License,Passport,Voter’s ID Card,etc.
- Address proof such as electricity bill,water bill,etc.
- Income proof.
- Photo identity proof.
ELIGIBILITY FOR GOLD LOAN
The eligibility criteria for the gold loan is given below.
- 18 to 65 years individuals can apply for this loan.
- The maximum amount of gold loan is twenty lakhs.
- A farmer, trader, salaried or self-employed professional, or businessman can get this loan.
INTEREST RATES OF GOLD LOANS
| NAME OF THE BANK | INTEREST RATES |
| Manappuram Bank | 12.00% |
| SBI Bank | 7.50% |
| ICICI Bank | 10.00% |
| Axis Bank | 15.00% |
| Bank of Baroda | 1.75% |
| PNB Bank | 8.60% |
| Kotak Mahindra Bank | 10.50% |
| Federal Bank | 8.50% |
| Central Bank of India | 2% |
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