Gold loans are safe and secure loans where gold jewelry is used as a guarantee. You initiate your gold jewelry with the bank and get a loan. The loan expanse is usually a percentage of the gold’s value. You can repay the loan through monthly installments. After the refund, you get back your gold jewelry. Nationalized banks, private banks, and other monetary institutions provide these loans at reasonable interest rates. Typically, borrowers use this loan to meet a rapid financial goal, such as a wedding or a child’s education.
What Are The Forms That YouNeed To Submit Gold Loan?
Here are some essential documents required for gold finance.
- Two passport size photographs
- ID Proof including Driving License or PAN Card or Form 60/61 or Passport Copy or Voter ID Card or Aadhaar Card or Ration Card.
- Anyone document needs to be submitted such as address Proof of Driving License or Voter ID Card or Ration Card or Aadhaar Card or Passport Copy or registered lease agreement with not older than 3 months utility bills in the name of the landlord
- Proof of landholding in case of a farming loan of more than 1 Lakh
Top 7 Platforms To Avail A Gold Loan
Short term money heads can be frightening as one has very few choices like credit cards, personal loan or gold loans for funding. Choosing for gold loans is a much better selection as compared to credit cards and personal loans that transfer a higher rate of interest. Here is the list of the best platform to benefits a gold loan in India.
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HDFC Bank Gold Loan
The gold loan from HDFC Bank is in the method of a term loan, overdraft or based on EMI. You requisite minimal KYC documents and your HDFC gold loan amount will be disbursed in 45 to 60 minutes.
Pros
- It has quick processing and disbursal
- The period up to 48 months
Cons
- It has 1.5% processing charges
- Up to 2% foreclosure charges
2. Axis Bank Gold Loan
Axis gold loan amount starts from Rs. 25,001 to Rs. 20 Lacks with same day loan disbursal. You can make the application online, on the phone or by visiting the office.
Pros
- It has NIL part payment charges
Cons
- Higher rate of interest
- 1% processing charges
3. State Bank of India Gold Loan
The gold loan from SBI begins from Rs. 20,000 to a supreme of Rs. 20 Lacks. You can take three types of gold loans in a specific bank.
Pros
- It has the lowest interest rate of 9.75%
- It also has NIL part payment charges
Cons
- 65% LTV for bullet repayment loans
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4. Manappuram Finance Gold Loan
You can get the loan processed at your home by Manappuram finance provides doorstep gold loan service. The gold loan application can also be completed online, after dropping gold and getting a ticket from the nearby branch.
Pros
- The loan ranges start from Rs. 1000 to Rs. 1.5 cores
- It has NIL prepayment fines
- Little loan processing fees
Cons
- Most of the schemes have 90 days tenure
- It has a higher rate of interest
- 3% per month late payment charges
5. Muthoot Finance Gold Loan
Muthoot Finance provides gold loans through several schemes for a loan amount ranging from Rs. 1500 to no upper limit depending on the security offered.
Pros
- The loan ranges begin from Rs. 1500 with no upper limit
- There are no NIL prepayment consequences
Cons
- Most of the schemes have less than 360 days of tenure
- It has a higher rate of interest
6. ICICI Bank Gold Loan
You can opt has two gold loan schemes of 6 months and 12 months from ICICI bank. The loan amount can range from Rs. 10,000 to Rs. 15 Lacks. You would get gifts from brands like Provogue, Tiny watch or Lee Cooper Bag on applying for a loan over Rs. 1 Lakh.
Pros
- It has a gift on loan availed
- You can apply application through missed call
Cons
- 6 and 12 months fixed tenure structures
- 1% foreclosure charges
7. Punjab National Bank Gold Loan
PNB provides gold loans without any loan higher limit for creative purposes like agricultural or similar and other activities.PNB has a 25% border for loans with payment of interest as and when charged selection and 35% for bullet payment option.
Pros
- PNB has NIL prepayment charges
- 1% concessional amount for agriculture activity
- NO upper loan amount for agricultural activities
- A lower rate of interest
Cons
- Maximum lease of 12 month
- LTV of 65% for shot repayment option
