Gold Loan

Gold Loans

A need for money that we do not have in our bank accounts is not unusual nor uncommon. A debt consolidation requirement, a medical emergency, family events, and home renovations, are some of the reasons that we may need extra funds that we do not have. In such circumstances, people often opt for loans of varying kinds, one of which is the gold loan. In India, gold is commonly worn as accessories and items of jewelry. Owing to the value of gold, it makes for valuable collateral when in need of money from legitimate lenders. Read further to know more about the terms and conditions that relate to gold loans.

Gold Loan Processing Fees and Interest Rates

Gold is a widely valid form of collateral for bank loans and loans from NBFCs in India. As such, gold tends to be a popular form of collateral to acquire loans with an emphasis on quick and almost instantaneous loan approval. Bearing in mind that you do have purchase receipts for the gold you intend to use as collateral for a loan and other required documentation, a bank or an NBFC will be happy to lend you money based on the value of gold. As usual, loan repayment comes with interest rates that ensure a profit for the bank and processing charges that are deducted from the loan amount extended to you. Listed below are the interest rates and processing charges for gold loans from leading banks and NBFCs in India.

• Please note that processing fees are a one-time deduction from the loan extended to you and a percentile of the loan amount.

Gold Loan Amount and Repayment Tenure

The loan is extended to you in the case of gold loans from Indian banks and NBFCs is strictly limited taking into consideration the weight and value of the gold you intend to use as collateral. Even so, different banks and NBFCs have a threshold for how much money they are willing to dispense as gold loans and the repayment tenure for said loan. Listed below are the maximum loan amounts you can avail of and the corresponding repayment tenures and EMIs set by Indian banks and NBFCs.

In conclusion, acquiring gold loans is easy and almost always instantaneous, as long as you have receipts for the gold you intend to use as collateral, and proper address and identification proofs.