Gold Loan India
Gold loan in India can be availed against individual gold jewelry/ ornaments like necklaces, earrings, watches, bangles, bracelets, pendants, coins, etc. The gold pledged by you against the loan acts as collateral for the loan which makes the loan secure. The value of loan to be sanctioned depends upon the weight of gold one is pledging and market rate per gram. In case of sudden financial requirements, one can easily get financial assistance by just mobilizing their personal asset.
Some of the loan against gold to look for in India is: Kotak gold loan, HDFC gold loan, Axis gold loan, Muthoot gold loan, and gold loan Manappuram besides others. At loanbaba.com, you can know the best gold loan provider in India and gold loans interest rates in India.
Features of loan against gold in India
Purpose of Gold Loan India
The purpose for the loan can be any. The sanction of your gold loan in India does not depend on the purpose for which the funds would be used. Not every lender will ask the reason for which you are interested in taking loan against gold. The purpose can be like medical emergencies, short-term investment, educational expenditure, holidays, etc.
Security of Gold Loan
The gold pledged with the bank/ NBFC itself acts as the security for the loan and the loan is thus fully secured. Hence there is no requirement of any collateral security.
Loan against Gold Tenure
Gold loan can be repaid up to a maximum of 2 years.
Fees for Gold Loan in India
The various fees which can be applied on gold loan are- penalty for non-payment of interest, processing fees, charges for late payment, valuation fees, etc.
Gold loan features different repayment options as per the requirement of the individual borrower. They are:
EMI-Equated Monthly Installment
One has an option of paying the interest in lump-sum and then clearing the principal amount in one go at the end of the loan period.
One can also opt for paying the interest portion on monthly basis while clearing the balance (principal) afterwards in a single installment.
Rebates on Loan against Gold
The lenders (banks and NBFCs) offer discount on the interest rate of gold loan in India if borrower agrees to pay the interest portion regularly. The rebate can be up to 2% on the prevailing rate of interest.
Top providers of Gold loan in India
- Axis Bank: Axis Bank has a unique scheme which flaunts for its speedy delivery. The bank assures immediate disbursement of the loan. The amount of loan that can be availed under this scheme is between Rs. 25,001 and Rs. 2,000,000. Edge loyalty points can be earned on this transaction.
- ICICI Bank: This scheme features minimal documentation. As per the bank, one can get the gold loan under this scheme with minimal documentation requirements and convenient procedure. The quantum of loan which can be granted per gram of gold is comparatively high under this scheme. The maximum loan which can be sanctioned under this scheme is Rs. 1,500,000.
- Muthoot Finance: This NBFC features gold loan at minimum rate of interest. One can avail any amount of gold loan in India at Muthoot Finance with a minimum of Rs. 1,500. Muthoot Finance also features variety of schemes for gold loan suitable for different types of customers.
- HDFC Bank: The bank offers gold loan in India under the name “Sampoorna Bharosa” at an attractive interest rate which features instant delivery of the loan. The minimum amount of loan under this scheme is Rs. 50,000.
- Mannappuram Finance Limited: This NBFC offers gold loan at a lower rate of interest with instant delivery. The company has various gold loan products in India to satisfy various needs of different customers.
- Kotak Mahindra Bank: The bank features quick disbursement of loan with minimal requirement of documentation. The amount of loan sanctioned per gram of gold is quite high as compared to the gold loan.