Gold Loan in Mumbai
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Gold Loan in Mumbai is offered to residents of the city, who need funds urgently for any expense. Banks and NBFCs in Mumbai have attractive offers on gold loans. They charge nominal rate of interest. The loan amount can be used for desirable purpose. Loan tenure is flexible and you can get maximum amount as per the gold weight and purity. The procedure for sanctioning a Gold Loan is transparent and the financial institutions help several customers meet their financial needs with the funds. You can get the funds in as less as 45 minutes, or the same day of the loan approval.
At loanbaba.com, you can apply for a gold loan with top banks and NBFCs in Mumbai.
|Gold Loan in Mumbai Details Updated 11th December 2019
Rs. 1 lakh to Rs. 1 crore
6 Months to 2 Years
10.50% - 13.50%
Why Apply for a Gold Loan in Mumbai?
Mumbai being the capital of Maharashtra and financial hub of India attracts people from all over the country to seek a living here. Many big financial institutions like Bombay Stock Exchange (BSE), Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), and National Stock Exchange (NSE) have headquarters in the city. Similarly, many other reputed organizations like mutual fund houses, nationalized banks and insurance companies have their head offices in this city.
The city has a diverse population in terms of ethnicity, culture, and more. It also has Bollywood- Indian Hindi film industry. Many migrants come to this city every year from other states of the nation which makes it to be multi-cultured city. And to meet monetary expenses, people take a loan against gold, which can be availed by anyone – a homemaker, salaried individual, a self-employed individual, a professional, businessperson, etc.
Features of a Loan against Gold
Below-mentioned are the features of gold loans.
Mumbaikars seek a loan against gold for needs such as wedding, travel, start-up, big-ticket purchase, home renovation and repair, education, etc.
There are no income criteria or hidden charges. Funds can be used for any personal or business requirement.
To obtain the funds, you have to pledge own gold jewellery or bank-purchased coins of at least 20 carats to 22 carats.
The pledged gold assets receive free security from the bank/NBFC. After you repay the loan, the lender will return the pledged asset in a few days.
Banks/NBFCs determine the loan amount per the weight and purity of the gold and the LTV (loan to value ratio), which is 75% maximum of the gold’s current market value.
As compared to other loans, a gold loan online is considered to be very easy, quick and convenient source of funds to fulfil immediate financial needs.
Factors to Consider Before Applying for Mumbai Gold Loan
Below-given are things to keep in mind when applying for the loan:
- Loan to Value Ratio: As per the norms of the Reserve Bank of India (RBI) a borrower can get up to 75% of the gold’s market value at present, as the loan amount. But the lending institution may offer a lower LTV as well depending on the purity of the gold, individual profile of the borrower, purpose of the loan, etc.
- Type of Gold: Only gold jewellery and bank-purchased coins of 18 carats to 20 carats acceptable as collateral. The loan amount depends on the content of gold in the jewellery. Any other material in the jewellery is not considered in calculation of the loan amount. Mangalsutra is usually not accepted as collateral, as well as gold-plated ornaments, gold bars, biscuits, chunks, wires, etc.
- Repayment Options: You can avail bullet repayment facility for a loan against gold. Here you can pay the entire principal borrowed at the tenure’s end. And every month till the end of tenure, you have to pay monthly instalments that will only contain the interest component. You can also avail the EMI option, wherein the monthly instalments till the end of tenure will comprise interest and principal component.
Why Apply for a Gold Loan at Loanbaba?
Below-given are reasons why you should choose Loanbaba to apply for a gold loan in Mumbai:
- Compare Gold Loans: Loanbaba gives information about gold loan offers from banks and NBFCs in Mumbai, so you can compare loan amounts, interest rates, charges, fees, tenures, repayment options, etc, across the lenders. You can go through the eligibility criteria and know the best fit offer for your needs.
- Free-to-use Financial Calculators: After knowing details such as tenure, loan amount, interest rate, you can calculate the monthly EMI expected by the financial institution. You can use loan EMI calculator on Loanbaba for free. The website also has a loan eligibility calculator, using which you can know the exact amount you are eligible to borrow. But the ultimate amount will depend on gold purity and weight, and based entirely on your repayment capacity.
- Apply Online: After comparing the gold loan offers, you can drop an online application on the website stating your loan requirements. The customer support team will interact with you to get the most suitable deal, and send your application to the respective financial institution for processing. A lending decision will be taken by the bank/NBFC soon thereafter.
- Get Quick Approval: After approval of your loan application, the gold asset to be pledged is evaluated for weight and purity. Upon this, a lending decision is taken as to how much loan amount will be sanctioned, the interest rate, and tenure. After the loan agreement, the amount will be disbursed to your bank account.
- Doorstep Customer Service: Loanbaba offers doorstep service when necessary and complete support through loan application. Your queries regarding a loan against gold in Mumbai will be taken care by a team of experts. The website does not charge any service fee on any services it provides.
Frequently Asked Questions about Loan against Gold
Below-mentioned are the FAQs about gold loan:
Only minimal documentation is needed for a loan against gold. You have to submit your PAN card, and any government recognized identity proof, address proof, along with your recent passport-sized photographs.
To apply for this loan, you must be over 18 years of age.
While both these loans have no restriction on the end-purpose of funds, they are yet distinct. A gold loan is secured in nature, while a personal loan is collateral-less. The former has tenure up to 2 years, and the latter up to 5 years. The interest rate on the former is also lower than on a personal loan.
There are special gold loan schemes for farmers and agriculturists. The rates of such schemes are subsidized, lower by 1% or 2% than the standard rate of interest. Here, the fund can be specifically used for farming or agricultural activity only, and the borrower has to serve the proof of land.
The financial institution has the right to auction the gold to recover outstanding due in case you default on the loan.
You can repay the loan through any method of money transfer such as a post-dated cheque or an online transfer.
Though a hard credit check is not mandatory, lenders expect the borrowers to have at least 600+ CIBIL score to attain a loan against gold.
You do not have to bills against the gold, until specifically asked by the financial institution. Billing proof may be required if the loan amount is big.
No, you do not need a guarantor to apply for this loan.
Several banks and NBFCs have special loan against gold schemes for women, especially female entrepreneurs. Such schemes come at a discounted interest rate and have other facilities over the standard schemes.
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