Hello friends, here we are going to know about gold loan, what is gold loan, how to take gold loan and everything you want to know.
All of you must have heard about gold loan, but it is also very important to have correct information about it because incomplete information is harmful.
In earlier times there were moneylenders who lent money on interest, people either mortgaged their land or kept jewellery, to get the money on interest. As you must have seen in old Hindi movies.
But due to the policies of the government and the banks providing loans at low interest rates, the moneylender practice is coming to an end. Gold loan is a very easy and easy loan from banks at very low interest rate, the amount of which you get within a day.
So let’s come to all aspects of gold loan like what is gold loan, how to take gold loan, what is the interest rate on gold loan, what is the process of gold loan. Documents seem to know everything in detail.
What is Gold Loan?
The loan taken against gold ornaments or jewelery in a private or government bank or in any non-banking finance company is called gold loan or gold loan.
Taking a gold loan is very easy and convenient as the documenting process of a gold loan is not as complicated as that of a business or home loan.
If your Aadhar card is fully updated and has complete information, then you can take a gold loan by just carrying your gold jewellery, photo and Aadhar card.
Gold loan gets approved in a single day and you also get the loan money instantly. Many private banks and NBFCs approve gold loan within one to two hours and transfer the money to your account.
Gold loan is a secure loan, if your gold is mortgaged with the bank, then your gold is also safe and the bank is not afraid of losing money, that is why the interest rate of gold loan is also very low.
How to take Gold Loan?
To get a gold loan, you must be aware of the documents required for a gold loan, how to get a gold loan, and the process to get a gold loan. So let us know all these one by one.
Required documents for gold loan
Following documents are required to take gold loan =>
Gold ornaments or utensils
To take gold loan, first of all you should have your gold jewelery or utensils because by mortgaging them then we will take gold loan.
Keep in mind that you can take a gold loan only on gold jewelery or utensils and not on gold biscuits or bullion as the Reserve Bank has banned them.
Jewelry receipt (bill) or declaration form
Another thing you should have is a receipt or bill of purchase for your jewelry to ensure that you are the owner of the jewelry.
But it is not that if you do not have a bill or receipt, then you cannot get a gold loan, if you do not have a bill or receipt, you have to fill a declaration form which you get in the bank itself.
Identity proof (ID proof)
After this, you will have to provide identity proof like Aadhar card, driving license, voter ID whatever you have for your identity.
Address Proof (Address Proof)
If your home address is not mentioned in your ID proof, then you will have to provide documents like electricity bill, water bill or rent agreement for the address proof.
PAN card or Form 60
For gold loan, you also have to submit a PAN card, but it is not that the loan will not be available if you do not have a PAN card, in case you do not have a PAN card, you have to fill and submit Form 60, which you get in the bank itself.
Two passport size photographs
Along with all these documents, you should also have two passport size photographs to put in the application form, keep in mind that the photos should not be too old.
Ways to take gold loan
There are four ways to take a gold loan =>
Visiting the branch – The first way to take a gold loan is to go to the bank branch with your gold jewelery and documents, fill the application form and submit the documents.
Gold Loan sitting at home – If you want to take a gold loan sitting at home, then you can do it by calling a non-banking finance company.
You can perk, their employee will come to your home and get all the documents and application forms submitted.
Online Application – For Gold Loan, you can also submit your documents by filling the online form by visiting the bank’s website and complete your KYC.
More Loan on Old Gold Loan – If you have already taken gold loan by keeping jewelery with the bank and if the loan amount is much less than the cost of the jewelery then you can apply online and apply for the remaining amount of jewelery and take a loan in your old loan.
Through SMS or Mobile App – You can take a gold loan by SMS to the bank or finance company or also from their mobile app, but for this, you should have your jewelry already deposited with them like in a locker etc.
Gold Loan Process(Gold Loan Approval Process)
The gold loan approval process is completed in the following steps =>
Gold Checking – In the process of gold loan, first of all the gold of your jewelery is checked that how many carats of your jewelery is because only 18 to 22 carats of gold loan is given in the bank.
Checking the net weight of gold – After checking the gold, the net weight of gold is measured that how much is the weight of pure gold after subtracting the weight of your jewelry, stones, etc.
Checking the ownership of gold – After checking the weight of gold, it is checked whether you are the real owner of gold, for this you are asked for a receipt (bill) of gold and if the bill is not there, the declaration form is filled
KYC Form and Documentation – After making sure that the gold is yours, your documents are checked and you are made to complete the KYC.
Application Form Verification – After checking the KYC form and documents, your application form is checked whether you have filled all the details correctly or not.
Calculation of the value of gold – After checking everything and everything is correct, the value of your pure gold is calculated, how much is the value of your gold, keep in mind that the value of your gold is not from the immediate price of gold Because the price of gold changes daily, therefore the value of your gold is calculated from an average rate of gold.
Finding ITV Loan to Value – After calculating the value of gold, its ITV loan to value i.e. the value of the loan that can be given on your gold is worked out that how much loan can be given on your gold. According to the instructions of RBI, banks can give loans up to 90% of the value of your gold and non-banking financial companies can give loans up to 75%.
Approval and Fund Transfer – Your loan is approved after everything is checked and evaluated and the loan money is transferred to your account by check or fund transfer.
Now you must have known that how to take a gold loan from a bank or financial company, let us now know what are the ways to repay the gold loan.
Ways to repay gold loan
There are three modes of repayment of Gold Loan which are as follows =>
Monthly Installment – Many banks and financial companies offer you the facility of repaying the loan in monthly installments to repay the gold loan. You can make monthly installments of your loan and repay it by paying your installments every month.
Pay only interest – Some banks and financial institutions also provide you the facility that you keep paying only the interest amount every month so that you have to pay only the principal amount at the end of the loan tenure.
One-time payment – This method o loan repayment is available everywhere, in which you do not have to pay the monthly installment of interest and principal, but pay the loan amount along with a lump sum interest at the end of the loan tenure.
So far we have known what is a gold loan, how to take a gold loan, what are the methods of repayment of gold loan, let us now know what is the interest rate of gold loan.
Gold loan interest rate
Government banks, private banks and non-banking financial companies have different interest rates on gold loans which are as follows =>
Name of Bank/Institution Interest Rate Loan Amount
SBI Gold Loan 7.50% p.a. 20 thousand to 50 lakh
PNB Gold Loan 8.75% to 9% p.a. 25 thousand to 10 lakh
Bank of Baroda Gold Loan 9.1% to 9.25% p.a. up to 25 lakhs
Bank of Maharashtra Gold Loan 7.35% p.a. up to 20 lakhs
Canara Bank Gold Loan 7.65% p.a. 5 thousand to 20 lakh
Indusland Bank Gold Loan 10.50% to 16.00% p.a. up to 10 lac
ICICI Bank Gold Loan 10% to 19.76% p.a. 10 thousand to 1 crore
Axis Bank Gold Loan 12.50% to 17.50% p.a. 25 thousand to 25 lakh
HDFC Gold Loan 9.50% to 17.15% p.a. Starting from 10 thousand
Muthoot Finance Gold Loan 12% to 27% p.a. Starting Rs.1500
Kotak Mahindra Gold Loan 10.00% to 17.00% p.a. 25 thousand to 50 lakhs
Manappuram Gold Loan up to 29% p.a. up to 1.5 Crore
Note – The above given interest rate and loan amount information is based on the latest information received by banks and financial institutions, but even after this, if any bank or financial institution has made any change in the interest rate or loan amount limit, then the rate mentioned above There may be a slight difference.
Other questions related to Gold Loanwhat Gold loan can be taken from any branch of the bank?
Yes, you can take a gold loan from any branch of the bank, but if you take a loan from a major or main branch, then you get the loan quickly because there is already a gold checking and valuation person and it will be done in the smaller branch. Have to call, it takes a little more time in smaller branches.
Question Related to Gold Loans
Are there any charges on Gold Loan?
Yes, you also have to pay the cost of gold checking and some processing fees have to be paid along with it, many banks and financial institutions do not even charge processing fees.
What is the tenure of Gold Loan?
The tenure of gold loan has been fixed by RBI for one year, you have to repay your gold loan with interest in one year.
From where should one take gold loan?
It depends on your requirement if you want to take maximum gold loan on your gold at least interest rate then you should take gold loan from government bank because there you can get up to 90% of the value of gold at lowest interest rate Loan is available but it may take two to three days to get loan in government bank.
Whereas non-banking finance companies provide you a loan within one to two hours, but they give you a loan only up to 75% of the value of your gold and their interest rate is also very high.
We have put here all the important facts related to gold loan like what is gold loan, how to take gold loaand how to apply for gold loan, interest rate of gold loan, repayment Efforts have been made to explain the methods etc.
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