5 banks offering lowest gold loan interest rates

Rate this post

Gold – it is something that is available in almost all Indian households. And with the gold that you own you can apply for a gold loan and get the money for your known expenses and even unanticipated obligations. Most banks offer gold loans for customers. Do keep in mind that the interest rates on gold loans will vary from bank to bank.

Here is a look at 5 banks that offer the lowest gold loan interest rates.

Maximum Loan to Value ratio provided by banks

Banks’ maximum value differs based on the loan to value ratio. For insurance, HDFC Bank offers maximum loan-to-value ratio of 75% of the gold’s present market worth. Therefore, the most you may borrow is Rs 75,000 if you end up mortgaging gold valued at Rs 100,000.

What is gold loan?

A gold loan is a loan that is secured by your gold jewellery. A gold loan is when you give the bank your gold in exchange for a particular sum of money.

Gold loan borrowers can acquire up to 80% of the market value of your gold as a loan; the loan is given after testing your gold assets for purity. A wedding, a child’s education, a company expansion, or any other comparable endeavours may be funded using the money obtained from Gold Loans.

Banks and NBFCs

According to the HDFC Bank, “When it comes to selecting a credible lender, there are broadly two options from which you can choose. You can take the gold loan either from a bank or an NBFC (Non-Banking Financial Company).

NBFCs could be more liberal when it comes to evaluating your gold, and the process is simple and hassle-free. But the interest rates offered by NBFCs tend to be higher than those provided by banks. Some banks, however, like HDFC Bank, not only offer Gold Loans at lower interest rates but also ensure a minimal and straightforward documentation process and transparent charges.”

Documents to submit to avail gold loan

According to the ICICI Bank, these are the documents needed to avail gold loan are –

1. Two passport-size photographs

2. Identity proof with a photo. (Any of the following: Driving Licence/Passport/Voters’ ID Card/Aadhaar Card/Ration Card)

3. Address proof (Any of the following: Driving Licence/Passport/Voters’ ID Card/Aadhaar Card/Ration Card/Job Card Issued by NREGA)

4. For direct agricultural activity, proof of land holding is required if the loan is above Rs 1 lakh.

5. For all allied agricultural activities, supporting documents are required if the loan is above Rs 5 lakh.

Leave a Comment

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

Please consider supporting us by disabling your ad blocker on our website