Check the best banks offering the lowest interest rates
- Gold Loan based on EMI: repayment of principal and interest will start from the month following the month of disbursement.
- Liquid gold loan: an overdraft account with transaction facility and monthly interest must be served.
- Bullet Repayment Gold Loan: Repayment of principal and interest at the latest at the end of the loan / at the closure of the account.
New Delhi: Gold in India is not a metal but it is more than that. It not only holds ornamental value, but also is the first choice for investment and savings for many people. Beyond buying the gold for investment or savings, people often opt for gold loans, which are a type of loan that is rapidly gaining popularity.
Here are the banks gold loan interest rates they offer:
Gold loan a viable option to meet short term financial needs!
Buy gold jewelry? You need to know these things about punching
Documents needed to get a gold loan
Submit one of the following:
Passport (not expired)
Driving license (not expired)
Voter ID card
Aadhaar card issued by UIDAI
PAN card (permanent account number) (accompanied by one of the documents mentioned above) or form 60
A passport size photo
Agri Allied Occupation Documentation (in case of bullet refund for agricultural clients)
What ornaments or coins can be pledged for a gold loan
According to the Kotak Mahindra Bank FAQ, “Only acceptable gold ornaments from 18 to 22 karat and only bank minted coins (24 karat) up to 50g per customer can be funded. Unfunded items/items such as hairpins, cufflinks, gold watch, gold bracelet, gold idols, gold utensils, jewelry with more than 50% off, mangalsutra thread, white gold, diamond jewelry, costume jewellery, Ginni, gold bars cannot be accepted.”
Method of repayment of the gold loan
The borrower can use the following methods to repay a gold loan:
Gold Loan based on EMI: Repayment of principal and interest will begin the month following the month of disbursement.
Liquid gold loan: An overdraft account with transaction facility and monthly interest must be served.
Bullet Gold Loan Repayment: Repayment of principal and interest no later than loan termination/account closure.