Quick Answer: What Is A Gold Loan?

What is the eligibility for gold loan?

Gold Loan EligibilityEligibilityProfession – Farmer, Trader, Salaried / Self-Employed professional, or businessman Age – 18 to 75 years of ageDocuments RequiredKYC documents to establish identity and address.

Passport, Driving license, Voters’ ID Card, Aadhaar Card, PAN Card are acceptedLoan AmountRs.

1,500 Onwards3 more rows•Oct 21, 2020.

How is gold loan calculated?

At the lowest gold loan interest rate of 9.90%, the minimum EMI works out to be ₹ 2,531 per lakh loan amount for 4 years. Banks will take average price of gold of last 30 days to estimate the value of the gold to calculate a borrower’s gold loan eligibility. The current average gold rate per 10 gram is ₹ 49,770.

How do gold loan companies make money?

Apart from these factors, it needs to be remembered that these gold loan companies also raise funds through deposits which are essentially long term money. By raising long term funds at lower rates and deploying them into short term gold loans, these gold loan companies earn an above-market spread.

Who can avail gold loan?

In order to apply for a Gold Loan, you must be: A farmer, trader, salaried or self-employed professional, or businessman. Between 21 and 70 years of age.

Can I get loan on gold coins?

Borrow Less Against Gold Banks are allowed to offer loan against gold ornaments and other jewellery and specially-minted gold coins sold by banks. However, they cannot lend for purchase of gold in any form.

How does a gold loan work?

How does gold loan works? The entire process of gold loan is quite similar to other secured loans. In this, you take your gold articles to a lender along with the required set of documents. … As per the loan agreement, you pay off the principal amount along with the interest amount and get the pledged gold articles back.

Is gold loan a good option?

As longer loan tenure converts into higher interest cost, opting for a gold loan might be a more cost-effective option for those confident of repaying their loan within one or two years. Personal loan would be a better choice for those seeking a bigger loan amount and longer tenure.

How much gold loan can I get per gram in Muthoot Finance?

Muthoot Finance Gold Loan Key FeaturesMuthoot Finance Gold Loan Interest RateStarting 7.0% per annumMuthoot Finance Gold Loan Rate Per GramRate Per Gram Today is ₹ 5,121Maximum Loan AmountUp to Rs. 1 CroreMinimum Loan Amount90% LTV on Your Gold Market PriceGold RequirementMinimum 18 Carat4 more rows

Which bank gives highest value for gold loan?

Gold Loan Interest Rates ComparisonBankGold Loan Interest RatesMax TenureManappuram Gold Loan Rates12.00%12 monthsHDFC Bank Gold Loan Rates9.90%24 monthsYes Bank Gold Loan Rates10.99%36 monthsICICI Bank10.00%12 months8 more rows

What is meant by gold loan?

Gold loan or loan against gold is a secured loan in which a customer pledges his/her gold ornaments as collateral with a gold loan company. The company, in turn, gives a loan amount as per the market value of gold to the customer.

How can I pay gold loan?

4 Ways You Can Repay Your Gold LoanPartial Payments. A gold loan has a number of advantages and one of these is that the repayment is quite flexible. … Regular EMIs. The regular EMI option is a very convenient and popular repayment method, especially among the salaried class. … Interest paid as EMI and the principal amount later. … Bullet Repayment.

Is cibil score required for gold loan?

Good Credit Scores are not critical for Gold Loans RBI has made it mandatory for banks to do a CIBIL score check before giving out any loans to customers. … Gold Loans, on the other hand, require you to provide a fairly liquid tangible asset, ie, Gold, as collateral.

What happens if gold loan is not paid?

Gold is Auctioned Since the gold has been pledged as collateral against the loan, failure to repay (three consecutive payments or more) will ultimately lead to the gold being auctioned off by the bank or the financial institution. This is now a non-performing asset and will be sold off for recovery.

What are the 4 types of loans?

There are 4 main types of personal loans available, each of which has their own pros and cons.Unsecured Personal Loans. Unsecured personal loans are offered without any collateral. … Secured Personal Loans. Secured personal loans are backed by collateral. … Fixed-Rate Loans. … Variable-Rate Loans.

Where can I get a low interest loan?

5 best low-interest personal loans available todayLendingTree – Compare Rates from Multiple Lenders. If you are looking to get your best interest rate on your personal loan, it is critical that you compare offers from multiple lenders. … Earnest. … SoFi. … Upstart. … LendingClub.

What is the benefit of gold loan?

Low-Interest Rates A generic comparison between gold loans and personal loans shows that gold loans come with lower interest obligations. A gold loan is sanctioned at interest rates that range between 11-13%, but a personal loan is a sanction on interest rates that range between 16-22%.

Which type of loan is best?

Unsecured personal loans. Personal loans are used for a variety of reasons, from paying for wedding expenses to consolidating debt. … Secured personal loans. … Payday loans. … Title loans. … Pawn shop loans. … Payday alternative loans. … Home equity loans. … Credit card cash advances.

What is the rate of gold loan per gram in SBI?

SBI Gold Loan CalculatorEligibility CriteriaSBI Gold LoanGold Loan per gram₹ 2,696 to ₹ 3,295 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan Amount₹ 20 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows

What are the 5 types of loans?

If you’re looking for some temporary cash or want to diversify your credit profile, here are five other common types of loans:Auto loans. Most people need to borrow money to buy a new or used car, which can take years to pay off. … Personal loans. … Credit cards. … Cash advances. … Small business loan.

What are the benefits of taking gold loan?

What are the advantages of the gold loan?Faster processing – Gold loans are secured loans and thus includes lenient eligibility criteria and minimal documentation. … Lower interest rate – As compared to unsecured loan such as personal loan, gold loans, which is a secured loan, charge a lower rate of interest.More items…•

How much is gold loan per gram in muthoot?

Muthoot Gold Loan Rate Per Gram by Gold PurityGold PurityGold rate per gram- average of past 30 daysMuthoot best Gold Loan per gram22 carat₹ 48,810₹ 3,29520 carat₹ 44,373₹ 3,29518 carat₹ 39,936₹ 2,696Aug 20, 2020