Other Priority/Non-priority Sector
Rs. 10 lakhs above to Rs. 25 lakhs
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.
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.
Here are the features of Vijaya Bank/Bank of Baroda Gold Loan Interest Rates:
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.
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.
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.
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.
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%.
Here is information on the jewel loan schemes:
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:
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Below-given are frequently asked questions for the jewel loan:
This loan is generally sanctioned for one year but can be renewed annually. The bank looks upon the account usage and renews the limit for a further period of one year.
The bank accepts 18 carats and above gold jewelleries or other gold ornaments bearing hallmarks, as security for this loan. The approved jewel appraiser of the bank reports for the quality of gold and the hallmark sign.
The bank has fixed its limits per gram of gold to be sanctioned. The credit limit of the borrower is determined based on these predetermined limits.
The margin requirements are 25 to 35 percent. But the loan to value ratio may depend on the gold weight/purity, the purpose of the loan, RBI, and bank norms from time to time.
The benefits of the jewel loan are mentioned below.
Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of Vijaya Bank/Bank of Baroda for gold loans.
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