IIFL Gold Loan gives you the flexibility of finance and repayment. You can borrow for up to 11 months and get maximum funds based on LTV. The Loan to Value Ratio is up to 75% of the asset’s market value. But you can apply for as little as Rs. 3,000 for your personal or any other kind of expenses. There are no part-prepayment charges. You can submit gold jewellery and bank-sold gold coins as collateral. The interest rate starts from 9.24%, which is one of the lowest among competitors.
In this post, we will discuss IIFL gold loan features, eligibility criteria, interest rate, factors that influence the rate of interest, documents required, loan application process, and FAQs.
Here are the features:
Here are the eligibility norms:
The IIFL Gold Loan interest rate charged is related to various factors;
The calculation of jewel loan interest rate depends on the below-mentioned aspects.
The loan amount sanctioned depends on the weight and purity of the jewellery pledged with the financial institution. IIFL gold loan interest rate calculation takes into account the loan amount to determine the rate of interest. The institution will offer an amount depending on per gram of gold of specific purity. The loan amount is also influenced by loan to value ratio, which can be up to 75% of the gold’s actual market value. A higher loan amount may attract a lower rate of interest, and vice-versa.
The period of the loan is one of the important factors to determine the rate of interest. Higher rates are usually charged for shorter tenure loans and vice-versa. However, the tenure primarily depends on your repayment capacity and the gold’s purity, weight, and of course, the loan amount. A suitable tenure is chosen in a way that you will be able to pay off the EMIs on time. A longer tenure will cause an increased interest pay-out, but smaller instalments every month, and vice-versa.
You should check with IIFL for their repayment options. Sometimes, you may be allowed to repay the interest amount in instalments through the tenure with complete repayment of the principal amount at the end of the tenure. Or else, you may have to pay interest and principal component in parts and parcel every month till the end of tenure.
A sound and healthy relationship with IIFL will help you secure additional benefits and a quick loan procedure. The financial institution may trust its existing customers because of its proven repayment track record and already submitted documents. In this case, there are higher chances of receiving the best interest rate, compared to new customers. The NBFC is likely to trust a customer who has already made successful repayments on time with the institution, to offer discounted rates of interest.
Though in a jewellery loan, your repayment capacity is not a primary concern since gold pledged acts as sufficient security, the NBFC may offer a better rate of interest if your repayment capacity is good. It indicates to the lender that you may not default at repayments and pay the instalments in time.
Below given is a list of documents needed to apply for the loan:
You need to attach 2 recent passport-sized photographs with duly filled and signed loan application forms.
PAN card is mandatory. Besides that, you can submit any of the proofs for identity such as a Driving Licence, Passport, Job Card issued by NREGA, Voter ID Card, Aadhaar card, etc.
You can submit an electricity bill, telephone bill, trade license, Ration Card, Passport, lease agreement, purchase agreement, etc.
To apply for a jewellery loan with a financial institution, you can either choose an online or offline method of loan application as mentioned below.
Visit the official website of IIFL and look for an online loan application facility for a loan against gold. If such a facility is available, you will be able to submit the loan application on the website itself by attaching the necessary documents’ soft copy. After dropping the application, you will be contacted by one of the customer executives to discuss the procedure further. You will be able to even track your loan application online. However, for the gold valuation process, you may have to visit the nearest branch office.
Visit the nearest branch office in your area and enquire for jewellery loan details and schemes. A customer executive will run you through the necessary details and suggest schemes best suited for your requirements. If interested, you can fill up the loan application form at the branch itself. It is best to carry necessary documents and gold to be a pledge for valuation, in case you plan to apply for the loan.
After gold valuation and application procedure are done, a loan amount and other aspects, such as interest rate, tenure, and other terms and conditions will be finalized. If the terms are agreeable, you can ask for the loan agreement and sign it. After the loan process is complete, the funds will be transferred to your bank account the same day.
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Here are the jewel loan FAQs:
If you have an Aadhaar Number, then you can get an e-KYC procedure done than physical KYC to avail of a jewel loan. The bank executive will perform the same on a tablet. And you will not have to submit any other papers for the loan.
The bank will verify the Aadhaar Card through fingerprint scanning or OTP through UIDAI. After the authentication, the loan application will be prefilled to make the process of the loan quicker.
You can repay through the new IIFL Loans Mobile App. This is available for Apple and Android phones. On the app, you can also go through the account summary and statement, submit a query, access an interest certificate, and a lot more.
You can pay the dues online at the official website of IIFL. The online payment system by the NBFC is safe, easy, quick, and convenient. You may also visit the branch to pay the principal or interest amount instantly.
A part-release of the pledged asset is possible. But this happens when you pay back a part of the dues. And depending on this repaid amount or the value of gold, you can request for partial release of gold jewellery.
You can opt for preclosure and close the loan account before maturity. Depending on the period when you choose to foreclose and the amount, you may have to pay a nominal fee from none to Rs. 150. The charges are applicable for the foreclosure if you do so before 3 months. There are no charges afterwards.
Disclaimer : Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of IIFL for gold loans.
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