How Does The Gold Loan Work?

How many types of gold loans are there?

The lender offers three types of gold loans – Gold Loan, Liquid Gold Loan, Bullet Repayment Gold Loan.

The Gold Loan is offered by SBI for a 36-month term.

For this loan type, the repayment of the principal and interest will occur on a monthly basis after disbursal of the loan amount..

What is the disadvantage of gold?

The primary disadvantages of investing in gold are:Gold appears to have no yield.Large amounts of bullion may incur some storage fees.Gold ETFs may incur brokerage fees (like shares)Gold can be volatile on a short-term basis (again, like shares)

How do gold loan companies make money?

thousand. The lender will charge you a high rate of interest on you, which is the main source of income for the lenders. When you repay the loan amount, you will have to pay around Rs. … In such cases, the EMIs that an applicant has already paid for so many years are their profit along with the total value of the gold.

Who can apply for 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 60 years of age.

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 carat45,0463,37820 carat40,9513,37818 carat36,8562,764Mar 24, 2020

Is gold loan a good option?

It is largely observed that availing loan against gold is a far better option than availing personal loan. … Your gold ornaments are a good security for a bank. Bank knows the fact that in case of non-payments of dues it can auction the gold and realise its dues.

Which bank is better for gold loan?

Check and Compare Gold Loan Interest Rates of Various Bank in IndiaBanksInterest RatesSBI Gold Loan7.75% – 8.50%Muthoot finance12.00% to 24.00% p.a.Manappuram14.00% – 26.00% p.aHDFC Bank10.50% – 15.95% p.a3 more rows•Nov 15, 2012

What are the documents required for gold loan?

We need one document of identity proof (such as ration card, driving licence, PAN Card, Voter ID card, passport etc.) and one document of residential proof. There are no end-use restrictions in gold loans.

Can I sell my gold to Muthoot Finance?

You can visit a Muthoot Fincorp Gold Point near you to sell gold for cash. If you want to hold on to your jewellery, you can avail a Muthoot Fincorp gold loan at affordable interest rates.

Which loan is better personal or gold loan?

Gold Loan Is Cheaper Than Personal Loan in India. Gold loan Is cheaper than personal Loan because financial institution is taking Gold as collateral. … The difference between the two is that in case of personal loan, you do not have to give any kind of collateral whereas a Gold loan is backed up by your Gold.

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

SBI Gold Loan CalculatorEligibility CriteriaSBI Gold LoanGold Loan per gramRs. 2,770 to Rs. 3,386 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan AmountRs. 20 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows

How much gold loan can I get per gram?

Gold Loan Per Gram – SBI, Manappuram, HDFC, Axis, Yes BankGold Loan per gramRs. 2,620 to Rs. 3,202Loan Amount EligibilityRs. 1,000 to Rs. 2 CrLoan as percent of gold valueUp to 75%Purity of gold18 carat to 22 caratType of goldGold jewelry and gold coins of banks of up to 50 grams2 more rows

What are the collateral required to avail loan against gold?

Collateral For gold loan, you need to pledge gold articles in the form of jewellery and coins. Conversely, for LAP, you are required to mortgage your commercial or residential property.

What is the procedure of gold loan?

To get a Gold Loan, you can walk into any ICICI Bank branch offering Gold Loan with your jewellery and avail of a Gold Loan for any value from Rs 10,000 to Rs 15 lakh quickly. With our simple and easy documentation process, the loan can be availed of across the counter quickly.

What happens if gold loan is not paid?

If you do not repay bank will sell gold in auction and recover principal and interest . It charges financial charges if there is delay in repayment . If default continues, dpending upon the terms and conditions of the agreement, it may auction the gold after giving due notice to the customer.

Does gold loan affect cibil?

Prompt repayment of any loan can boost your credit score significantly, and Gold Loan is no different. Hence, a Gold Loan taken and repaid early or on time will have a more positive impact on your credit score rather than taking an unsecured personal loan.

What is the maximum tenure for gold loan?

12 monthsPurpose and tenure of loan: Gold loans are generally short-term loans, with maximum tenure generally being 12 months. Hence you must borrow only if you are sure you can repay during this term. Else, your gold may be auctioned by the lender.

Which type of loan is best?

There are two main types: federal student loans and private student loans. Federally funded loans are better, as they typically come with lower interest rates and more borrower-friendly repayment terms.

Why do people take gold loans?

The reason why people prefer to take a loan against gold rather than selling gold is due to the following reasons. … Also, banks provide gold loans at a lower interest rate with no requirement of credit score or income proof. Thus, it is easy to avail of gold loans.

Is taking gold loan Safe?

But if you don’t have the confidence of returning the principal and interest in time, then you should avoid taking a loan against gold,” advises Manglik. Also, gold loans are good in a rising market. However, if gold prices correct drastically during the loan tenure, banks may ask for the payment of the difference.

How much gold loan can I get per gram in HDFC?

HDFC Gold Loan CalculatorEligibility CriteriaHDFC Gold LoanGold Loan per gramRs. 2,761 to Rs. 3,374 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan AmountRs. 50 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows