Federal Bank Gold Loan

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Federal Bank Gold Loan Details Updated on
Loan Amount Rs. 1,000 to Rs. 150 lakhs
Tenure 6 months to 12 months
Interest Rate 8.50% onward

Federal Bank Gold Loan is for a 12 months period. You can get a loan of up to Rs. 150 lakhs. The acceptable assets to pledge are gold jewellery and bank-sold coins (up to 50 grams). You require only the basic KYC documents to apply for the jewel loan. The bank offers loans to different sectors of society for personal/business/agriculture purposes. There are various repayment alternatives to suit the needs of the borrowers.

In this post, we will discuss Federal Bank gold loan features, eligibility criteria, interest rates, types of jewel loans, documents required, and frequently asked questions.

Features of Federal Bank Gold Loan

Here are the features:

  • You can take a loan against gold on 22-carat gold jewellery.
  • The loan amount is up to Rs. 150 lakhs.
  • The loan to value (LTV) ratio is up to 85% of the pledged gold’s market value.
  • The bank offers higher per gram rates, a low rate of interest, and no hidden charges.
  • You will receive an instant sanction on your loan request.
  • Minimal paperwork and fast loan processing are the special benefits.
  • Get advantage of flexible tenure and convenient repayment (lump sum or EMI).

Eligibility Criteria for Gold Loan Federal Bank

Here are the eligibility norms:

  • Any person over 18 years of age can apply for a jewel loan.
  • You can apply for the loan for personal/business or agriculture purposes.
  • You must possess a gold asset of purity 22 carats.

Federal Bank Gold Loan Interest Rates

Here are details for Federal Bank Gold Loan Interest Rate:

  • The lowest gold loan rate by the bank is 8.50%.
  • The rate is fixed and not floating.
  • This may change at the discretion of the bank.

Types of Federal Bank Gold Loans

Here are the different types of jewel loans by the bank:

1. Doorstep Gold Loans

  • The bank has an association with partners to provide customers with doorstep delivery for a loan against gold.
  • The partners are M/s Rupeek Fintech Pvt Ltd and M/s Oro Corp Technologies Pvt Ltd.
  • You will receive the loan at your convenience at the comfort of your home.
  • The bank has a hassle-free process for approval and disbursement.

2. Digi Gold Overdraft

  • You have to hand over the gold asset to the bank. The institution will securely store the asset against which you can get up to 72% of the gold’s market value.
  • This type of loan is available for personal purposes only. The quantum of finance is Rs. 1,000 to Rs. 150 lakhs.
  • The repayment options are lump sum or bullet payment.
  • You can withdraw/deposit funds as per your requirement. You can also utilize the money on any day.
  • You need to pledge gold assets of at least 22-carat purity and avail of higher per gram rates.
  • With minimal paperwork, you can expect quick disbursement.
  • The bank may allow partial release/replacement of gold jewellery during the tenure.
  • For the asset, you may also get an alternate locker facility. This may include free insurance coverage.

Documents Required for the Loan Application

Here are the documents you need to apply for a jewel loan:

  • Duly filled and signed loan application form
  • Existing customers do not need to provide any paper.
  • Proof of signature
  • Recent passport-size photographs
  • Proof of Identity: Passport/Aadhaar Card/PAN Card/Driving Licence
  • Proof of Address: Aadhaar Card/Lease Agreement/Voter ID Card/Utility Bill/Trade Licence

Apply for Gold Loan

Frequently Asked Questions about Gold Loan Federal Bank

Here are the Federal Bank Gold Loan FAQs:

  • Interest is applicable only on the amount you use.
  • You can transfer funds, shop online, pay bills directly from the funds.
  • You will receive facilities such as net banking, mobile banking, and ATM card

The doorstep gold loan by Ghaziabad. M/s Oro Corp Technologies Pvt. Ltd. Is available in Chennai.

This service for jewel loan by M/s Rupeek Fintech Pvt. Ltd is available in cities such as Coimbatore, Mumbai, Hyderabad, Chennai, Bangalore, Jaipur, Ludhiana, Surat, Indore, Pune, Chandigarh, Lucknow, Kolkata, New Delhi, Mysore, Ahmedabad, Vijayawada, and Rajkot.

Under the Special Gold Loan Scheme, one can avail of the minimum loan amount of Rs.1000/- to the maximum loan amount of Rs.75 lakhs. Not only this, the borrower by availing of this scheme can enjoy a higher amount per gram of their gold. The bank will pledge only 22-carat gold which will also act as collateral. It includes jewellery, ornaments, and coins.

One year is the repayment period. You can opt to repay the loan in instalments or in a lump sum, whichever is suitable. The bank will not charge penalties for paying off the loan in a lump sum. The interest is payable only on the amount you use. You can go for the partial withdrawal of the loan.

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