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Prominent NBFCs/Banks Offering Gold Loan in India:
Gold Loan is a secured loan type where individuals can get financial assistance by pledging their gold as collateral. It will allow people to make use of their gold kept inside the locker and get funds for helping them during their financial crisis.
The funds which you receive can be used for any purposes like purchasing your dream home, paying off your current debts, or for your working capital investment. As per RBI guidelines, the loan amount which you will be sanctioned will depend on certain aspects.
Features of Gold Loan:
There are certain features which you should know before you opt for a gold loan like:
● Specific gold loan schemes are sanctioned only for some regions of the nation.
● When you fail to repay your loan, your gold ornaments will be auctioned.
● You can avail of a gold loan against physical gold ornaments including, gold coins. Both banks and NBFCs won’t give you a credit against gold ETF and gold bonds.
● Repayment of the gold loan can be made in any branch of the financial institutions, irrespective of where you get your loan.
● When you pledge gold ornaments with metals, stones, and gems, then only the gold value will be calculated for the loan amount.
List of Top Banks/NBFCs Offering Gold Loan In India:
1. Shriram City Union Finance Gold Loan: Shriram City Union Finance offers gold loan schemes for borrowers. The tenure and the gold loan amount depends on the plan the individuals prefer to choose. The gold which you pledge as collateral will be safe and secured until you repay the loan. Some prominent features of Shriram City Gold Loan are:
○ The Gold Loan interest rate starts at as least as 6% till 20%, depending on the gold you pledge and the loan amount you choose.
○ There is a very minimal processing fee and prepayment fee.
○ The gold loan tenure is flexible.
○ You can get a customized repayment schedule for your gold loan.
2. Muthoot Gold Loan: Muthoot Finance offers many gold loan schemes. You can choose the tenure and amount of loan you want, depending on your financial situation. Your gold items will be safe. Here are certain features of Muthoot gold loan:
○ Allows partial repayment.
○ You can avail of a minimum of Rs.1,500 with no maximum limit on gold loan.
○ Prepayment can be done without any penalty.
3. HDFC Gold Loan: HFDC bank offers a gold loan with the scheme “Sampoorna Bharaosa Gold Loan” for their borrowers. This special scheme offers and interest rates for existing account holders of the bank. HDFC bank offers a gold loan with features as below:
○ HDFC gold loan charges 1.5% plus GST as a processing fee.
○ Women customers have special and lower interest rates.
○ When you foreclose your account within three months, then you should pay foreclosure charges of 2% plus additional GST.
4. ICICI Gold Loan: If your age is between 18 to 70 years, you can opt for an ICICI bank gold loan and only when your gold purity is above 18 karats. The loan is easy to approve and gets disbursed instantly. Gold loan features for ICICI are:
○ Customers should pay 1% of the loan amount as the processing fee.
○ You should also pay 6% per year when you pay dues after the particular due date.
5. Canara Bank Gold Loan: Canara bank provides gold loan under a scheme named “Swarna Loan” with which when you pledge your gold ornaments and have an account in the bank you will be submitted with the loan. The main features of this gold loan are:
○ The interest rate varies depending on the loan amount you choose. When you get a loan up to Rs.5 lakh, then your interest rate will be 9.85% whereas when it’s above that, it will be 9.95%.
○ Appraising charges for the jewel, a document regarding the gold valuation given by a jeweler should all be provided to the provider.
○ The minimum and maximum amount of the loan which you can avail will range from Rs.1,000 to no maximum.
6. Axis Bank Gold Loan: When you are between the age of 18 to 75 years, and you have any gold jewelry which is above 18 karats, then you can avail of a loan. The axis bank gold loan offers features like:
○ The minimum loan amount you can get is Rs.25,001.
○ This loan type comes with flexible repayment options like monthly EMIs, paying loan amounts, and interest together at the loan end.
○ No part payment charges during the loan tenure.
○ You will have to pay 1% of the loan amount as a processing fee.
7. Manappuram Gold Loan: Manappuram Finances provides you higher loan to value ratio for those who want to avail maximum loan amount against their pledged gold. The main features are:
○ There is no bank account need for a transaction less than Rs.1 lakh.
○ No prepayment penalty when you repay your loan before the tenure end.
○ Don’t have any minimum or maximum lock-in period.
8. Federal Bank Gold Loan: An individual can get a gold loan from the federal bank for personal, business, or agri purposes when you give them a gold purity of 22 karats.
○ You can get a loan amount as less as Rs.1000 to a maximum of Rs.150 lakhs.
○ You can get a loan amount which is 82% of the market price of the gold for Agri purposes and 75% for other purposes.
9. Bank Of Baroda Gold Loan: Bank of Baroda provides gold loan for both priority and non-priority sectors when you are pledging gold of purity 18 karats
○ There are no prepayment / preclosure charges for your gold loan.
○ No processing fee for a gold loan up to Rs.3 lakh when taken for agriculture purposes.
10. SBI Gold Loan: SBI offers a gold loan when you have a steady income. It has loans specifically for SBI housing loans and when you are into agriculture.
○ The minimum loan amount you can get is Rs.20,000 to up to Rs.20 lakhs.
○ You will pay up to 0.50% of the loan amount as processing fees for the loan.
Harper Harrison is a reporter for The Hear UP. Harper got an internship at the NPR and worked as a reporter and producer. harper has also worked as a reporter for the Medium. Harper covers health and science for The Hear UP.