Gold loan in India is very common since people prefer pledging their gold for money. There can be various purposes of availing a gold loan. These include starting a new business, paying off medical bills or any other purpose that need immediate funds.
Gold loan is easy to avail and the loan amount can be disbursed in a day or so. But, the interest rate on a bigger amount of gold loan can be very high. Don’t be surprised if you end up paying the interest rate on the gold loan which is double the total value of your gold. Usually the interest rates on gold loans are pocket-friendly if you apply through nationalised banks, NBFCs or private banks. Immediate funds can be arranged via a gold loan for your child’s education or wedding, etc. Usually, the interest rates on the gold loan may range from 13 to 16%.
These are the types of gold loans which is offered to only farmers as well as agriculturists for funding the production of crops. These can also be provided for any types of agricultural investments or allied activities against the farmers gold ornaments. Here, the loan is offered for a maximum of 3 years and the rate of interest ranges from 8% to 10%.
Any loan which is offered to borrowers who are not farmers or agriculturists are termed as Non-agricultural gold loans.
Quick processing – Since Gold loans are a type of secured loans, the eligibility criteria and the document is quite lenient and minimal. You do not even need to have a good credit score for such loan approvals. This is the reason why, the gold loan disbursement takes place in a couple of hours. Besides, if you have a pre-approved eligibility for an online gold loan, you may even receive the gold loan amount in your bank account in just a few minutes
Lower interest rate – Gold loan being a secured loan, the interest rates are quite lower than unsecured loan like personal loan, gold loans, which is a secured loan, charge a lower rate of interest. Also, if you attach another asset as collateral, the gold loan interest rate can be lowered further
In order to utilize the Gold Loan EMI Calculator, all you need to do is furnish the below mentioned details.
Once you submit the above mentioned details, the EMI calculator would very quickly calculate the instalment amount that you need to pay monthly (considering the ongoing gold rates) to be paid by the borrower
Mentioned below is the list of documentation that is needed for application of Gold loan in India:
Duly filled application form
Latest photograph in the prescribed size.
Valid Identity proof:
Valid Address Proof:
Gas Connection Bill
Electricity Supply Bill
Water Supply Bill
You should be above 21 years of age when you apply for the loan.
To apply for a gold loan in India, you should have a steady source of income. Therefore, even pensioners and employees of the bank may avail the benefit of a gold loan
You can make the gold loan EMI payment either via ECS or by cash
Yes, you can renew your gold loan amount after completion of a year.
Yes, most of the banks and financial institutions that offer gold loan have motion detector as well as gold vault and CCTV that ensures safety of your gold
Yes, there is a facility of making part-payments for your gold loan. However, remember that your gold would be released only after you clear the entire outstanding amount
If you miss the interest payment, you will be charged a penalty which may be around 2% p.a. above the regular interest rate
Using a Gold loan calculator will help in following ways:
• Saves time from any tedious and faulty calculations.
• It integrates the recent gold rates into the calculation.
• Offers flexibility for trying out various options for finding the Gold loan which is suitable for your requirement.
• Gives you enough time for making required adjustments in your monthly budget in order to make regular EMI payments of your gold loan.
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