Andhra Bank Gold Loan Interest Rates

Andhra Bank gold loan interest rate starts at 10.70% onwards. The bank offers gold loan to its existing as well as new customers at an interest as low as that mentioned. The rate of interest applicable to a borrower may vary with purity of gold pledged, quantum of loan availed and amount of margin furnished. Being a multi-purpose loan, you can use the funds for various needs such as marriage, an event, travel, medical emergency, home repair, education, big-ticket purchase, etc.

At Loanbaba, you will get to know details about Andhra Bank gold loan rate and loan scheme.

Andhra Bank Gold Loan

Details

Loan Amount

Rs. 10 thousand to Rs. 2 crores

Interest Rate

10.70% onwards

Tenure

3 months to 12 months

Processing Fees

Nil

Prepayment Charges

Nil

Andhra Bank Gold Loan Interest Rates 2019 Information

As per the current rate of 10.70%, the lowest monthly installment for a lakh of rupees is Rs. 8,824. You can use the EMI calculator on our website to understand the exact EMI (equated monthly installment) amount on a loan against gold. The rate of interest on the jewel loan will depend upon an individual’s profile and other factors, such as relationship with the bank, personal credit history, purity and weight of gold, etc.

  • Check out the various repayment schemes offered by the bank. Is it a lump-sum payment method? Is it EMI method? Bullet repayment scheme?
  • The longer the tenure, the smaller will be the EMI. However, you will end up paying more of interest amount compared to that on a shorter tenure.
  • So, when selecting loan tenure, keep in mind your financial situation, and choose a tenure that is comfortable for your pockets. Sometimes, a longer tenure is required to manage the EMI amount.
  • But if you can repay faster, then you should do so. After all, many banks do not charge a prepayment penalty on foreclosure of gold loan.

Besides checking the EMI amount, you can also check Andhra Bank gold loan eligibility criteria and our free-to-use eligibility calculator to understand if you can avail the loan

Andhra Bank Gold Loan

A loan against gold in India caters to several needs of a person. You can take it for resolving financial emergencies, as disbursal is quick. Funds can be expected in as less as a few hours. Andhra Bank ensures a speedy process of loans against gold. Below-mentioned are features of Andhra Bank gold loan and rate of interest.

  • The rate of interest applicable on the loan starts from 10.70%.
  • One can avail the loan for tenure between 3 months and 12 months.
  • The prepayment charges are NIL in this case.
  • The bank does not charge any processing fees and prepayment penalties on this loan.
  • One can avail a loan ranging from Rs. 10 thousand to Rs. 2 crores.

Andhra Bank Gold Loan Interest Rate Calculator

Interest rate applicable on Andhra Bank Gold Loan starts from 10.70%. The rate of interest applicable on this loan depends upon loan tenure, the amount of loan availed and the margin offered to the bank. The rate of interest applicable on Andhra Bank Gold Loan to its existing customers is lower than that applicable to new customers.

Here is what the Andhra Bank Gold Loan Interest Rate Calculator takes into account to determine the rate of interest on jewel loan.

  • Loan amount: The value of loan granted to you depends upon the value of the gold (jewelry) pledged by you with the bank. The bank has predetermined per gram value of loan, depending upon the gold purity. The bank charges a lower interest rate where the quantum of loan availed is high. Hence, rate of interest levied on Rs. 10,000 will be higher than rate of interest levied on Rs. 20 lakhs.
  • Relationship with Bank: The bank offers special rate of interest to its existing customers. If any customer has a good track record in the past, he/ she may be charged with a lower rate of interest.
  • Loan tenure: Like most of the banks, Andhra Bank also charges a higher rate of return on lower loan amount and vice versa. Hence, interest rate applicable on loan with period of 3 months will be higher than loan with 12 months tenure.
  • Loan to value (LTV) ratio: As per RBI guidelines, in case of gold loan a bank cannot finance more than 75% of the value of gold pledged with the bank (LTV). Loans with higher LTV ratio are considered more risky than loans with lower LTV ratio. Hence interest rate applicable on loans with lower LTV ratio is lower than on loans with higher LTV ratio.
  • Purpose of loan: Banks offer gold loans for various purposes including retail (personal needs) and agriculture. Since, lending under agricultural scheme helps the individual bank in achieving its priority sector target imposed by RBI, the bank offers 1 to 2 percent concession in rate of interest on loans opened under agriculture scheme.

Documents Required to Apply for Andhra Bank Gold Loan

The documentation requirements for gold loan application at the bank are mentioned below:

  • All you need to furnish to the bank is gold for evaluation, which has to be kept as security.
  • You need to submit identity proof and address proof. PAN card, passport, Aadhar card, Driving license, or Voter card can be furnished as identity proof.
  • In case of address proof one can submit one of the documents: Aadhar card, utility bills, voter card, rent agreement or bank account statement.

How to Apply for Andhra Bank Gold Loan?

You can apply for the loan against gold by directly walk-in to a nearest bank branch. An executive will brief you about the gold loan scheme and the best plan for the same. You will have to fill the loan application form and bring the gold jewelry/coin for evaluation. After approval of a gold amount, the same will be disbursed to your bank account the same day or the next day, depending on the disbursal time taken by the institution.

FAQs on Andhra Bank Gold Loan

Below-given are frequently asked questions on Andhra Bank Jewel Loan Interest Rate and loan scheme.

  • addFAQs
    1. Does a prepayment charge apply on the jewel loan?
    2. You can foreclose your Andhra Bank Gold Loan anytime without any prepayment charges. So, if you come into funds, do not delay repayment, but repay soon so as to save on interest payments.

    3. What kind of gold items are accepted and rejected as a security?
    4. The bank accepts gold ornaments ranging from 18 carats to 24 carats with minimum weight of 50 grams. You cannot furnish gold bars, ladies Mangal Sutra or ETFs (Exchange Traded Funds) as security under this scheme.

    5. Can you apply for Andhra Bank Gold Loan online? Is there an online payment facility available?
    6. No, there is no facility of applying for gold loan online in Andhra Bank. But, the bank gives its customers an option of repaying the loan online.

    7. Does the bank provide Agricultural Gold Loan?
    8. No, there is no such specific scheme; however you can avail gold loan for your agricultural needs under the same gold loan scheme. The bank may consider on special concession on the interest rate applicable.

    9. What is the maximum loan amount?

    Depending upon the value of gold jewelry pledged you can avail a loan of up to Rs. 2 crores. Your repayment capacity also has a hand in deciding the loan amount you are eligible to get.

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

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