Compare Gold Loan by Different Banks

Gold loan is a new and emerging concept in the banking industry. There are a lot of people who own gold jewellery or ornaments which are lying idle at home or in the bank vault. A gold loan basically helps you unlock the value of these precious metals by allowing you to avail a loan against them. The process of availing a gold loan is rather simple. You can approach any bank or non-banking company which provides a gold loan with your ornaments. The bank or lender will carry out a valuation of the ornaments and check them for purity, weight, etc. In some cases, you might also be required to show proof of your ownership of the gold ornaments being pledged by you. Once the ornaments have been verified, the loan amount will be sanctioned to you. Thus, we recommend our viewers COMPARE BEFORE APPLY FOR GOLD LOAN .

Bank Name  Interest Rate Range (%)  Lowest EMI Per Rs. One Lakh Tenure (Months)  Loan Amount (Min - Max)  For More Detail & Apply
 10.55 - 10.55  Rs. 3,807 3 - 30  20,000 - 20,00,000  Apply
 12.00 - 24.00
Rs. 3,321 7 Days - 36  1,500 - 1,00,00,000  Apply
 14.00 - 26.00
Rs. 34,114 1 Days - 3  1,000 - 1,00,00,000  Apply
 11.00 - 14.95  Rs. 4,661 6 - 24  50,000 - 50,00,000  Apply
 10.00 - 16.10 Rs. 8,792 6 - 12  10,000 - 15,00,000  Apply
 12.50 - 12.95  Rs. 8,908 6 - 12  1,000 - 75,00,000  Apply 
 11.75 - 11.75  Rs. 8,873 12 - 12  10,000 - 10,00,000  Apply
 14.50 - 17.00
Rs. 3,442 6 - 36  25,001 - 20,00,000  Apply
 9.24 - 12.00
Rs. 9,516 3 - 11  3,000 - 10,00,000  Apply
 9.75 - 10.75  Rs. 8,780 12 - 12  Upto - 10,00,000  Apply

 

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Charges associated with Gold Loan:

  • Loan processing charge: While some of the service providers may waiver these charges, some banks do charge a processing fee.
  • Valuation Charge: These are the charges to be paid to the valuator. These charges are also specific to the service provider and those having in-house valuators do not charge any extra amount for valuation.
  • Late payment penalty: Most of the service providers charge late payment penalty and this too can vary from one institution to the other.
  • Pre-payment penalty: Most of the service providers do not charge a penalty for repayment before the loan tenure is over. But some may still have this charge in place.
  • It is advisable to check with the loan provider before taking the loan. These charges could change the amount that you may finally receive. 

 

Advise On Gold Loans

  • Go for gold loan if you are confident of returning the money in time otherwise, you will be penalized and all your pledged gold will come under the control of bank or finance company.
  • While opting for gold loan check the interest rates in various banks and private finances. If you go for private lenders then better to go with one who has been in this business for many years.
  • As far as you are not emotionally linked to your gold ornaments this is the best option. However nothing like this can help you during your difficulties and with the fall of dollars and euro many think gold is the only safe thing left. 

 

Documents required For Gold Loan

  • Identity proof such as passport, voters ID or driving license.
  • Address proof such as electricity bill, ration card, telephone bill etc.
  • For signature proof you need to submit your passport copy, driving license or any other document with your sign.
  • 2 passport size photographs. 

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FAQ on Gold Loan

The eligible amount for a gold loan is calculated using the following parameters: • Net weight of the jewellery • Purity • Prevailing gold rate • Scheme chosen
No. Our lending partners accept only gold jewellery. We do not accept gold coins and bars.
No. Our lending partners accept only gold jewellery. For example, we do not accept gold coins and gold bars. Only Jewellery of 18 carats and above is accepted, subject to valuation reports.
Apart from Interest rates, there are two types of loans charged by the banks: • Gold loan processing fee: Most banks charges minimum processing fee from NIL to 1.01% on jewel loans. To get lowest fee, comparison on gold loan rates, • Gold loan prepayment and foreclosure: Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your jewel loan partially before time, it is called part prepayment. In case you decide to prepay the entire loan amount is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to some percentage of the outstanding amount. So, check carefully if the low rate of interest is coming with high prepayment or foreclosure charges. Note that some loans cannot be paid before time.
You can make part-payment, but the gold jewellery will be released only after the entire outstanding amount is repaid.
Yes, banks charge penal fee for late payment. The percent of penal charge can be over and above the existing rate of interest or above the overdue amount. Most banks charge penal fee up to 2% p.a. over and above applicable rate of interest. Some banks also charge up to 24% p.a. as penal interest over and above applicable rate of interest. So be careful while selecting particular gold loan scheme and do check the penal fee and other charges
As gold loans are secured loans so they have low rate of interest. The rate of interest varies with LTV and the loan tenure.