Vijaya Bank Gold Loan Interest Rate and Bank of Baroda Gold Loan Interest Rate are based on MCLR and the purpose of the loan. The rate of interest may vary with the loan amount, loan scheme, tenure, loan to value ratio, gold weight, and purity. The interest rate is subject to change periodically. A gold loan can help meet any financial requirement, be it for business or personal. You can use the funds for any activity such as agriculture, home repair, business expansion, medical emergency, education, travel, big-ticket purchase, etc.

• You can repay the loan in 2 years or up to 30 months as per the erstwhile scheme.
• Currently, the repayment tenure is up to 12 months.
• The margin applicable in this loan is 25 to 30 percent.
• Applicants need to be aged between 18 years and 70 years.

NOTE: Vijaya Bank was amalgamated with Bank of Baroda with effect from 1 April 2019. On this page, you will get details on erstwhile and current jewel loan schemes. We will also inform you about gold loan features, eligibility criteria, interest rates, and FAQs.

Vijaya Bank/Bank of Baroda Gold Loan Interest Rate Features

Here are the features of Vijaya Bank/Bank of Baroda Gold Loan Interest Rates:

• The erstwhile Vijaya Bank gold loan interest rate was between 11% and 17% per annum.
• Currently, for agriculture jewel loans up to Rs. 3 lakhs, the interest rate is 1-year MCLR.
• For loans over Rs. 3 lakhs and up to Rs. 10 lakhs, the interest is 1-year MCLR + S.P.
• For other priority sectors and loans up to Rs. 3 lakhs, the rate of interest is 1-year MCLR + S.P.
• For other priority sectors and loans above Rs. 3 lakhs and up to Rs. 10 lakhs, the interest rate is 1-year MCLR + S.P + 0.25%.
• The interest rate is 1-year MCLR + S.P + 0.25% for agriculture loans above Rs. 10 lakhs and up to Rs. 25 lakhs.
• The interest rate is 1-year MCLR + S.P + 0.50%. for the same loan amount limit for non-priority as well as priority sectors.

Vijaya Bank/BOB Gold Loan Interest Rate Calculation

Several factors account for determining a rate of interest, such as purity and weight of gold, loan amount, tenure, and other aspects, as mentioned below.

• Loan Amount

The loan amount will depend on the purity and weight of gold, so does the interest rate. The higher the purity of gold assets, the lower will be the rate of interest, and vice-versa.

• Relationship with the Bank

The bank may provide concessions on the standard interest rate to existing customers. But new customers can also avail affordable rates if their repayment capacity is excellent, and the gold purity the highest.

• Loan Tenure

A shorter tenure comes with a higher rate of interest and a longer period applies a lower rate of interest. Thus, it is wise to note the rate of interest over a loan period and select tenure based on your repayment capacity.

• Loan to Value Ratio

As per norms of RBI, you can get finance up to 75% of the gold’s market value. But the bank may offer a lower LTV as per the loan scheme. Lower rates of interest will apply to the lending of higher LTV, and vice-versa. In the current pandemic situation, the LTV may increase up to 90%.

Details About Bank of Baroda/Vijaya Bank Gold Loan

Here is information on the jewel loan schemes:

• Purpose: The main objective of Vijaya Bank Gold Loan is to finance against the security of gold ornaments and jewellery for domestic as well as productive reasons, like;
• Agriculture and allied purposes for the cultivation of crop and investment such as in technology, minor irrigation (watershed development), purchase of livestock, etc.
• Term loan or working capital finance (Cash Credit) to Traders, self-employed professionals, small businesses, and other small and medium scale enterprises.
• Eligibility: All individuals over 18 years of age who own 18 carats and above gold ornaments and jewellery are eligible to be financed under this scheme.
• You can avail of funds in a term loan scheme as well as CC/ OD.
• Quantum of Loan: Up to Rs. 25 lakhs
• A guarantor is not required for the loan.
• If you submit minted gold coins as security, then the total weight cannot exceed 50 grams in this case for a single borrower.
• A margin at the rate of 25 percent to 35 percent is maintained by the bank to calculate the loan amount.
• Processing fees: The bank does not charge any processing fees or documentation fees for this loan in most of the cases as special concession is given. The processing fee + GST may apply for loans over Rs. 3 lakhs.

Documents Required to Apply for the Jewel Loan

Vijaya Bank/BOB gold loan eligibility is not only about meeting the age criteria, gold loan weight, and purity, but also able to submit the required documents as follow:

• Any one of the Identity proofs: Passport, Aadhaar Card, PAN Card, Driving License, Voter’s ID Card
• Any one of the Address proofs: Aadhaar Card, Rent Agreement, Bank Statement, Voter’s ID card, Utility Bills, etc.