Allahabad Bank Gold Loan Interest Rates

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Allahabad Bank gold loan interest rate starts at 10.20% to 12.45%. This bank is one of the leading loans against gold providers and offer funds up to Rs. 25 lakhs. Now, you need not worry about cash shortage as you can get rid of your financial woes with jewel loans. You can use the fund for any reason like business, personal reason, work capital need, agriculture, education, trade, home repair, wedding, vehicle repair, medical emergency, etc.

At, Loanbaba.com you will get all the details about Allahabad Bank jewel loan interest rate and the loan scheme.

Allahabad Bank Gold Loan Interest Rates Details Updated on 8th April 2020

Allahabad Bank Gold Loan Rate and Scheme

Details

Rate of Intereste

MCLR up to a year + 4.25%

Eligibility Criteria

Candidates from 18 - 70 years old

Loan Amount

Rs. 5000 to Rs. 25 lakhsc

Tenure

6 months to 60 months

Processing Charges

Varies between 0.4% - 1% of the total loan amountd

Foreclosure Fee

1% of the outstanding principal amount GST applicable if the foreclosure happens before 6 months

Gold Valuation Charges

Rs. 500 + GST

Pre-closure Fee or Prepayment Penalty

1% of the outstanding loan amount + GST

Allahabad Bank Gold Loan Interest Rates 2019 Information

The bank offers jewel loans so that you can fulfil their financial requirements. In return, you have to pay an interest amount along with the principal borrowed to the bank. The actual rate of interest shall vary depending on the type of loan. The rate of interest applicable can be understood using the following case studies.

Case 1

If you opt for a loan for agricultural purposes, you are likely to be charged the following interest rates on your gold loan

  • For loans up to Rs. 50,000 – Base Rate of 10.2% applies. Thus, if you opt for loan lesser or equivalent to the amount of Rs. 50,000, interest rate will be as per the base rate.
  • Loan of Rs. 50,000 to Rs. 2 Lakhs – Base Rate +1% (11.20%) shall be charged. Thus, if your loan value ranges between Rs. 50,000 to Rs. 2 Lakhs, you will be charged an interest on the base rate plus 1%.
  • Loan of Rs. 2 to Rs. 5 Lakhs – Base Rate +2% (12.20%) shall be charged. Thus, if your loan value ranges between Rs. 2 and Rs. 5 Lakhs, you will be charged an interest on the base rate plus 2%.

Case 2

If you opt for a jewel loan due to domestic or medical consumption needs, the interest rates charged will be as follows:

  • For loans up to Rs. 3 lakhs – Base Rate 10.2% plus 2.25% (12.45%) applies. Thus, if you choose a loan less or equal to Ra. 3 lakhs, he will be charged at 2.25% plus the base rate.
  • Loans between Rs. 3 and Rs. 5 lakhs – Base Rate plus 4%, i.e., 14.2% shall be charged. Thus, if you choose a loan of Rs. 3 lakhs to Rs. 5 lakhs INR, 4% plus the base rate will be applicable.

Case 3

If you take a loan for business needs, the interest rates charged will be as follows:

  • For loans up to Rs. 3 lakhs – Base Rate of 10.2% plus 2.25%, i.e., 12.45% applies. Thus, if you apply for a loan lesser or equivalent to the amount of Rs. 3 lakhs, interest of 2.25% plus the base rate will be applicable.
  • Loans between Rs. 3 to Rs. 25 lakhs – base rate and 4%, i.e., 14.2% shall be charged. Thus, if you take a loan of Rs. 3 lakhs to Rs. 25 lakhs, interest of 4% plus the base rate will be applicable.
Gold Value Rate Per Gram of Gold
22 Carat Rs. 1100
20 - 21 Carat Rs. 850
18 - 19 Carat Rs. 750

Allahabad Bank Gold Loan

Below-given are details about jewel loan by the bank.

  • Anyone who is above 18 years of age and up to 70 years old can apply for this loan.
  • A margin of 25% is maintained by the bank for the loan scheme.
  • Both gold coin and jewellery can be placed as collateral for the funds.
  • Tenure is maximum 5 years.
  • As a borrower, you have to bear the actual gold valuation charges.
  • Funds cannot be used for speculative purposes.

Allahabad Bank Gold Loan Interest Rate Calculator

Allahabad Bank gold loan rate of interest stars from 10.20%. Several factors determine the rate of interest charged by the bank. These factors include the loan tenure, amount, weight and purity of the gold. Old customers of the financial institution may get a lower rate of interest as compared to the new customers.

Below-provided are the aspects that Allahabad Bank gold loan interest rate calculator may take in account to fix the rate.

  • Loan Amount

    It is the gold asset’s purity and weight that decides the loan amount as well as the interest rate. The more the weight and purity of gold, lower will be the rate and higher the loan amount.

  • Relationship with the bank

    The bank may offer best rate of interest to existing customers sharing a good relationship with it given regular and on time repayments and investments. It is however better to check with the financial institution itself to know the rate of interest applicable on jewel loan as per your individual profile.

  • Loan Tenure

    As you may already know, a lower tenure applies higher interest rates and a longer tenure attracts a lower interest rate. So, enquire about the best tenure for the loan as per your financial position.

  • Loan to Value Ratio

    LTV or loan to value ratio of gold loan is up to 75% of the current market value of the gold asset, as per the RBI norms. Banks may offer a lower LTV as well, but not higher. Greater the LTV, lower the rate, and vice-versa.

Documents Required for Allahabad Bank Gold Loan

Below-given are the documents required to apply for gold loan at Allahabad Bank.

1. Residential Proof: Electricity Bill / Ration Card/ Passport Copy/ Telephone Bill.

2. ID Proof: Voter ID Card/ Passport photocopy/ Driving License.

3. Carry two passport size photographs.

4. Land ownership proof.

How to Apply for Allahabad Bank Loan against Gold?

Follow the methods listed below to apply for loan against gold by the bank.

  • Online Method: Loan application for jewellery loan can be dropped on the official website of the bank. Choose from the various jewel loan schemes and go through the eligibility criteria and other details. Fill up the loan application form and upload the needed documents. The customer care executive will communicate with you. Gold valuation will be done in the bank’s premises.
  • Offline Method: For loan application offline, you have to visit the nearest bank branch. A bank executive will run you through the details of jewel loans and help you understand the best suited scheme for your requirement. You may want to apply for the loan there itself. Ask for a loan application form, fill the details, and sign it.

    Do not forget to attach the hard-copy of the documents and pasting your recent passport-sized photograph on the form. Your loan application will be reviewed and gold collateral evaluated for weight and purity, before the disbursal process is initiated.

  • Disbursal Process: The fund will be credited to bank account within a few hours or a day. Depending upon the loan application approval, time taken for the disbursal will vary. Since jewellery loans are meant to get over financial emergencies, the disbursal is usually instant after loan approval.
  • addFAQs

    1) What is the nature of gold loan at the Allahabad Bank?

    You can use the funds for non-agricultural and agricultural purpose, besides domestic and medical needs, personal and business needs.

    2) How much loan can you take?

    If you need funds for agricultural purpose, you can get between Rs. 5,000 and Rs. 5 lakhs. The quantum of finance for consumption, domestic purpose, and personal need is Rs. 20,000 to Rs. 5 lakhs. The amount of loan for business purpose is between Rs. 50,000 and Rs. 25 lakhs.

    3) What is the repayment scheme?

    The bank offers an EMI repayment scheme. Here, you have to pay both the interest and principal component through the loan tenure, every month. The maximum tenure for the loan is 12 months. It is best to not default on the loan so as to maintain a good credit score and not lose the ownership of the collateral gold asset.

Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of Allahabad Bank for gold loan.

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