gold loan interest rates: 5 banks offering lowest gold loan interest rates

Gold – it’s one thing that’s out there in nearly all Indian households. And with the gold that you just personal you possibly can apply for a gold loan and get the cash to your identified bills and even unanticipated obligations. Most banks supply gold loans for patrons. Do remember the fact that the interest rates on gold loans will fluctuate from financial institution to financial institution.

Here is a take a look at 5 banks that provide the lowest gold loan interest rates.

Maximum Loan to Value ratio supplied by banks

Banks’ most worth differs primarily based on the loan to worth ratio. For insurance, HDFC Bank gives most loan-to-value ratio of 75% of the gold’s current market value. Therefore, essentially the most you might borrow is Rs 75,000 if you find yourself mortgaging gold valued at Rs 100,000.

What is gold loan?

A gold loan is a loan that’s secured by your gold jewelry. A gold loan is once you give the financial institution your gold in alternate for a selected sum of cash.

Gold loan debtors can purchase as much as 80% of the market worth of your gold as a loan; the loan is given after testing your gold belongings for purity. A marriage, a baby’s training, an organization growth, or every other comparable endeavours could also be funded utilizing the cash obtained from Gold Loans.

Banks and NBFCs

According to the HDFC Bank, “When it involves deciding on a reputable lender, there are broadly two choices from which you’ll be able to select. You can take the gold loan both from a financial institution or an NBFC (Non-Banking Financial Company).

NBFCs may very well be extra liberal with regards to evaluating your gold, and the method is straightforward and hassle-free. But the interest rates provided by NBFCs are usually increased than these supplied by banks. Some banks, nonetheless, like HDFC Bank, not solely supply Gold Loans at decrease interest rates but additionally guarantee a minimal and simple documentation course of and clear prices.”

Documents to undergo avail gold loan

According to the ICICI Bank, these are the paperwork wanted to avail gold loan are –

1. Two passport-size pictures

2. Identity proof with a photograph. (Any of the next: Driving Licence/Passport/Voters’ ID Card/Aadhaar Card/Ration Card)

3. Address proof (Any of the next: Driving Licence/Passport/Voters’ ID Card/Aadhaar Card/Ration Card/Job Card Issued by NREGA)

4. For direct agricultural exercise, proof of land holding is required if the loan is above Rs 1 lakh.

5. For all allied agricultural actions, supporting paperwork are required if the loan is above Rs 5 lakh.