Best Banks For Gold Loans India
Need money fast? A gold loan can be a great option! You can borrow money by using your gold jewelry as collateral. It's like a quick cash advance, but instead of using your credit card, you use your gold.
The amount you can borrow depends on things like how much gold you have, how pure it is, and the current gold prices. Different banks have different rules, so it's a good idea to compare them before you choose one.
- State Bank of India Gold Loan - Features and Benefits
Tenure: Loan tenure between 12 months and 36 months.
Processing Fee: Low processing fee of 0.5% of the loan amount subject to a minimum of Rs. 500 plus applicable GST
Flexible loan amount: You can avail of loans ranging from Rs. 20,000 to Rs. 50 lakhs.
Flexible loan repayment modes: SBI offers flexible repayment modes for gold loan repayment. A customer can use gold loan, liquid gold loan, or bullet repayment gold loan methods to make payments for SBI gold loans.
Security: Gold items given as security are returned on repaying the loan.
Quick approval of the loan.
Prepayment - Borrowers can prepay their loans without any prepayment charges.
- Kotak Mahindra Bank Gold Loan - Features and benefits
Tenure: up to 4 years
Processing Fee: Up to 2% of the loan amount plus applicable GST.
Quick disbursal
Security of gold: Your gold will be completely safe and secure at the bank
Minimal documentation
High LTV ratio: Gold loans can be availed at a higher loan-to-value ratio
Flexible repayment options: Offers easy and multiple repayment options
Both existing and non-existing customers of Kotak Mahindra can avail of this facility.
Gold loan amount determined based on assessment of pledged gold: The gold loan ornaments or coins pledged by the customer will be evaluated by the bank to determine the eligibility for the gold loan amount
Gold loan facility: Customers can avail of gold loan facility options and decide on the facility available under the most suitable product.
- HDFC Bank Gold Loan - Features and Benefits
Tenure: The bank offers flexible repayment tenures ranging from 6 to 24 months
Processing fees: Up to 1% of the disbursal amount (Including the applicable tax)
Lower interest rates and processing fees: Customers can benefit from low processing fees. A specific set of customers can also benefit from further discounted rates.
Minimal documentation
Waiver on loan foreclosure charges: There are no foreclosure charges after 3 months.
Maximum LTV ratio: A high LTV ratio of 75% of the calculated weight of gold.
Different types of gold repayment schemes: HDFC gold loans can be repaid through different schemes like through regular EMIs, repaying the principal and interest after 1 year which is known as the bullet repayment option, or paying the interest upfront and the principal at the end of the tenure.