Gold Loan
A gold loan is a type of loan that allows individuals to obtain funds by pledging their gold assets as collateral. It provides a quick and convenient way to access cash without having to sell your gold. Gold loans have gained popularity due to their easy availability and attractive interest rates compared to other types of loans.
To avail a gold loan, you need to approach a lender who specializes in providing such loans. The lender will evaluate the value of your gold based on its weight and purity. Once the evaluation is complete, the lender will determine the loan amount you can borrow, typically ranging from 70% to 90% of the gold’s market value.
One of the significant advantages of a gold loan is that it is a secured loan, meaning the lender has the assurance of the collateral. As a result, the eligibility criteria for a gold loan are relatively lenient compared to unsecured loans. Even individuals with low credit scores or a lack of income proof can qualify for a gold loan. This makes it an attractive option for people who may face difficulties obtaining other types of loans.
Gold Loan Benefits
Quick and easy access to funds: Gold loans are typically processed quickly, allowing borrowers to get the required funds in a short period. The loan approval process is relatively simple, as it primarily involves evaluating the value of the gold being used as collateral.
No credit check: Gold loans are secured loans where the gold acts as collateral. As a result, lenders often do not perform extensive credit checks on borrowers. This makes gold loans a viable option for individuals with a poor credit history or no credit score.
High loan-to-value (LTV) ratio: Gold loans offer a higher LTV ratio compared to other types of loans. LTV ratio refers to the percentage of the gold’s value that can be borrowed. Generally, lenders offer loans up to 75-90% of the gold’s appraised value, allowing borrowers to access a significant amount of funds.
Flexible repayment options: Gold loans provide flexible repayment options to borrowers. They can choose from various repayment tenures, ranging from a few months to a few years. Borrowers can select a repayment schedule that suits their financial situation and repay the loan accordingly.
Lower interest rates: Gold loans often have lower interest rates compared to unsecured loans, such as personal loans or credit cards. Since gold serves as collateral, lenders consider it a lower-risk loan, resulting in lower interest charges for borrowers.
No end-use restrictions: Gold loans do not come with any end-use restrictions. Borrowers can utilize the funds for any purpose, such as business expansion, education, medical expenses, or debt consolidation. The freedom to use the loan amount as per one’s requirement makes gold loans versatile.
Minimal documentation: Gold loans require minimal documentation compared to other types of loans. The primary documents required include proof of identity, address, and the gold’s ownership. The simplified documentation process makes gold loans convenient and hassle-free.
Opportunity to retain ownership: When taking a gold loan, the borrower pledges their gold as collateral but retains ownership. Once the loan is repaid, the borrower can retrieve their gold from the lender. This allows individuals to use their gold as collateral while still retaining its inherent value and sentimental significance.
Features of a Gold Loan
- A gold loan may be used to fund a variety of needs, including educational expenses, medical emergencies, vacations, and so on.
- The gold which has been guaranteed with the bank or financial institution serves as insurance or collateral for the loan sum.
- The duration of the contract can be anywhere from 3 months to 36 months.
- Other fees and charges that can apply to a gold loan include processing fees, late payment fees or penalties for not paying interest, valuation fees, and so on.
- Borrowers have three key choices for repaying a gold loan, according to lenders. There are the following:
- Equated Monthly Installments for Repayment (EMI)
- Interest is paid upfront, and the principal loan balance is repaid at the end of the loan term.
- Interest is paid on a monthly basis, and the principal loan balance is repaid at the end of the loan term.
- Several lenders can give a discount on the current interest rate on a gold loan if the borrower repays the interest on time. This rebate can be anywhere between 1% and 2% of the original interest rate.
Gold Loan Interest Rate
Feature | Gold Loan Interest Rate | Processing Fee | Tenure |
Private Gold Loan | 10.50% | 0.25 % – 1.50% | 9 – 24 Months |
Axis Gold Loan | 10.50% | 0.50% – 1.50% | 6 – 24 Months |
Yes Bank Gold Loan | 10.50% | 0.50% – 1.50% | 6 – 36 Months |
SBI Gold Loan | 9.50% | 500/- to 0.50% | 6 – 36 Months |
Kotak Gold Loan | 11.00% | 1% to 2% | 9 – 24 Months |
IIFL Gold Loan | 9.96% | 0%* | 12 – 24 Months |
Muthoot Finance Gold Loan | 6.84% | Nil | 1 – 24 Months |
Manappuram Gold Loan | 12.50% | Nil | 6 – 12 Months |
PNB Gold Loan | 11.00% | 0.70% to 1% | 6 – 12 Months |
Eligibility Criteria and Documents Required
There are certain requirements that are required to be fulfilled to avail a loan against gold:
- The applicant should have attained at least 18 years of age.
- The individual should have his own gold ornaments or articles that can be pledged.
- The gold to be pledged should be 18 carats or above.
- The applicant should have a decent CIBIL score.
Bank | Interest Rate | Eligible loan amount | Lowest EMI/lakh |
Other Gold loan | 9.90% | Rs 50 lakh for 24 months | Rs. 4614 |
Private Bank | 10% | Rs. 15 lakh for 12 months | Rs. 8,792 |
Axis Bank | 15% | Rs. 20 lakh for 24 months | Rs. 4,849 |
Yes Bank | 11.25% | Rs. 50 lakh for 36 months | Rs. 3,286 |
Muthoot Gold loan | 12% | Rs 1 cr. For 36 months | Rs. 3321 |
Mannapuram Gold loan | 12% | Rs 1 cr. For 12 months | Rs. 8,885 |
IndusInd | 7.65% | Rs. 10 lakh for 12 months | Rs. 8,683 |
What are the Documents Required for Gold Loan?
Identity Proof | Aadhar Card/Pan Card/ Passport/ Voter ID |
Residence Proof | Aadhar Card /Pan Card/ Ration Card/ Utility Bills on the name of the applicant/ Rental Agreement of applicant/ Voter ID card. |
Agriculture Proof ( only if applicable) | Agriculture Land Ownership Proof |
How to Apply for a Gold Loan?
- You may be able to apply for a gold loan either online or in person. To apply for a loan online, go to the lender’s website and choose the loan product you want to apply for. If the required option is available on the website, you must then click on ‘Apply Now.’ Following that, you must fill out the online application form with the appropriate information and send it online.
- If you are unable to apply for a loan through the lender’s website, you must go to the lender’s nearest branch. Customers may use their official website to locate the nearest branch of several lenders. Make sure you have a copy of the required documents with you at all times.
- Your application will be checked by the lender after you submit it. You will be given the loan amount if your application is accepted.
- In the event of a financial emergency, a gold loan is a fast and simple way to obtain funds. Make sure you do the necessary research to obtain a gold loan that is appropriate for your needs and repayment ability.
How to Calculate your Gold Loan Interest Rate?
The Rate of Interest is the amount that is charged on the amount of the loan. The Gold Loan Interest Rate depends on the factors stated below:
Internal/External Customer: The loan seekers who have an account in the bank from where they want to avail the loan, then such customers are known as internal customers. Internal customers are given a rebate on the rate of interest charged by the applicant.
Amount of Loan: The loan amount is the major factor that decides the rate of interest that will be charged from the applicant. The Gold Loan Interest Rate is higher for loans with lesser amounts. Thus, the more the amount of loan, the lesser is the Rate of Interest.
LTV Ratio (Loan to Value Ratio) – Furthermore, lending institutions charge a higher rate of interest on the Loan Against Gold with a high LTV ratio. Thus, the more the LTV of the gold jewellery, the higher is the Rate of Interest charged by the applicant.
What are the different Gold Loan Repayment Schemes?
There are three ways to repay the loan amount disbursed by the bank.
- Bullet Repayment: Most people choose this option when it comes to repayment of Loan Against Gold. In this service, the applicant just has to pay the interest rate during the tenure of the loan. Therefore the principal amount has to be paid at the end of the loan tenure. But, this option is provided to the customers availing short term loans. The interest rate is paid on a monthly basis through EMI’s.
- Overdraft Facility: Next, this is a type of scheme that is famous among self-employed people. As people owning a business have fluctuating money requirements. Through this service, one can withdraw money according to their needs.
- That is, the applicant can choose the amount from the total loan amount disbursed for which they want to pay interest. Thus, the interest is applied to the amount that is withdrawn by the customer. Finally, the customer also has an option to renew the loan after the completion of the loan tenure.
- EMI Facility: Furthermore, this is another scheme that customers can choose for the repayment of the Loan Against Gold. In this option, a fixed amount is calculated that the applicant has to pay monthly. This value includes a part of the principal amount and the interest rate. This scheme is becoming popular among people.
Gold Loan Vs. Personal Loan
|
Gold Loan
|
Personal Loan
|
|---|---|
|
A Gold loan falls under the secured loan.
|
A personal loan falls under an unsecured loan.
|
|
There is no need to provide evidence of income or have a decent credit score to get a Gold Loan.
|
A good score, ideally above 700, is expected, and also a minimum of three years of work experience with a steady income is required. In the case of businessmen, a three-year-old company that has been profitable for at least the previous two years is needed.
|
|
Except in the case of a loan taken out for agricultural purposes, the loan may be used for any reason. If money is being used for agriculture, it should be used to raise a crop or invest in farm machinery or other agricultural-related activities.
|
The loan can be used for any reason and has no end-use limits.
|
|
The weight of the gold that will be pledged determines the quantum. Gold should be between 18 and 22 carats. Normally, the quantum will be up to 75% of the gold’s current market price. In certain banks, a price per gram is set according to market conditions, and it is dependent on the gold’s value and weight.
|
The loan is dependent on the applicant’s income.
|
|
A 25 per cent to 35 per cent margin on the market price of gold will be needed. The LTV would be between 65 and 75 per cent of the gold’s market value.
|
There is no need for a margin. A 100 per cent loan would be issued with a debt-to-income ratio of 40 per cent to 60 per cent. After deducting current obligations and the planned EMI, the net take-home compensation should be between 40% and 60% of the gross salary.
|
Who Can All Apply for a Gold Loan?
- First and foremost, the gold should be in the name of the applicant or one of the family members.
- Secondly, the applicant should be an Indian resident.
- Thirdly, The age should lie between 18 years to 70 years (at the time of loan maturity).
- Next, the bank is not concerned about the employment status of the applicant. Thus salaried, self-employed, homemakers, students, anyone can apply for a Loan Against Gold.
Loan Approval – Steps you should follow to Get the Loan Approved Faster
When you want to receive money to purchase a new or used car that you have decided to buy, it is better that you choose a pre-approved loan. To avail of such a car loan, you can simply follow a few steps to receive the required amount quickly.
- Check Your Credit Report: You can always check your CIBIL score report to verify your position in terms of credit score. A credit score of 750 or more can get you a low-interest rate for a car loan. The interest rate for a credit score of 650 to 750 will be slightly higher. If you have defaulted in your CIBIL score report or have a poor credit score, your loan application may be rejected by the lenders.
- Pay Your Bills on Time: Availing a car loan to buy your dream car, you should have a fixed minimum monthly pre-tax income and a manageable DTI (debt-to-income ratio). While it is not possible to change one’s income in most cases, you can improve your DTI by clearing off all your due credit card bills or outstanding dues. To create a good credit profile, you should always pay your outstanding bills on time.
- Look out for Car Loan Options: There are multiple options available in the market through which you can get a car loan to purchase your new or used car. You should check the best car loan interest rates of different car financing firms and banks to find the one that compliments your needs.
- Borrow Minimum Funds: By paying a more significant amount upfront as the down payment for the car, you can reduce the amount that you will need to borrow to match the price of the vehicle you have selected. If you borrow less amount of funds, you will be in a position to repay your loan quickly or as early as possible since a smaller loan amount means lower EMIs.
- Make Sure to Select a Plan That Fits Your Pocket: The repayment capabilities of an applicant significantly affect the approval of a loan that the applicant has applied for. As you decide to get a car loan to buy the car that you want, you should make sure that you choose the best Plan/ Scheme that you can afford.
- Pay Attention to the Terms and Conditions of the Loan: A loan with low monthly Instalments but consists of a longer tenure might not be feasible for you. Before you finalize your Loan scheme, you should always try to opt for the best program with the lowest interest rate and the shortest tenure for the loan possible.
- Get Insurance with Complete Coverage: When offering a car loan, the main point of concern of NBFCs and banks is not to incur any losses or default. Therefore, having full-cover insurance is a requirement for many organizations before sanctioning a loan. It helps recover the balance debt in case of an accident wherein the borrower is at fault or cannot pay it back.
Gold Loan Approval Process
The gold loan process varies depending on the particular lender. The concept of gold loans is simple; you make a promise of your gold records and get a loan amount instead. To do so, you visit the gold lending centre you want to commit to and the required documents. The lender makes checks for the purity of gold and determines its weight on a basis when checking its market value. Gold loans can be allowed up to 80 per cent of the estimated value of the promised gold. Once the price of the promised gold is calculated, the documents are verified. And when all else fails, get your loan approved by the bank.
Nowadays, gold loans can also be used online via a bank or NBFC mobile system or an official website. However, applying for a gold loan online does not mean that you will not have to visit your lender. To get a gold loan online, you will need to visit your lender at least once to submit your gold articles. Once this is done, you can sign up for the borrower customer portal or mobile application and link your bank account with it. So in the future, whenever you need or urgently need money, you can apply for a gold loan and get the loan available out of your bank account anytime, anywhere, in just a few minutes.
FAQ’s for Gold Loan
What is Gold Loan Interest Rate Formula?
Loan Against Gold Interest Rate varies in different banks. Mainly, it depends upon the amount of loan and LTV ratio of the gold.
How to pay Gold Loan Online?
You have an option to pay a gold loan online through online repayment applications.
What are the Chances of Facing Rejection?
The loan is processed for disbursement only after proper verification of the gold supplied. Suppose it is discovered that the gold item is fraudulent, stolen, or missing a bill, or that the documents are not authentic, the odds of rejection increase. Otherwise, because the loan is granted based on gold grade and simple KYC paperwork, there is a trivial risk of it being denied.
Do I Need to be an Existing Customer of a Bank to Avail a Gold Loan?
Some banks may need you to be a current client to receive certain benefits from a gold loan. On the other hand, many other banks do not require you to be a customer to apply for a gold loan. If you search for a gold loan outside your regular bank, reputable non-bank financial companies (NBFCs) are another choice.
Do I Require a Guarantor for a Gold Loan?
No, a guarantor is not needed for a gold loan. In the case of a default, your gold is utilised as collateral.
How does Gold Loan Work?
Loan Against Gold is straightforward to understand as well as easy to avail. The Bank provides you with funds for your gold Jewelry. The amount depends upon the gold weight.
Gold Loan is secured or not?
Yes, Loan Against Gold comes under the category of secured loan because the applicant has to put their gold jewellery into the bank’s locker as security or as collateral.
When don’t you repay a Gold Loan amount?
If the applicant is unable to return the gold loan amount at fixed tenure, the bank is liable to sell his gold Jewelry.
What is Gold Loan?
The gold loan also referred to as ‘Loan Against Gold’, is a type of secured loan that a person can avail by keeping their gold ornaments as collateral security with the lender. Unlike other secured loans like car loans or home loans, a gold loan can be used for any purpose.
How to calculate the Gold Loan interest rate formula?
The gold loan interest rate formula depends upon a number of different factors, which are; loan amount, loan tenure, quality of gold, relationship with the lending bank, and loan to value ratio. Different banks calculate the rate of interest differently.
How to get a loan against gold?
A loan Against Gold is the easiest way to get a Loan, especially in case of any urgent need. All you need to do is to take your Gold Ornaments and walk into the nearest Bank Branch or Non-Banking Finance Company Branch that deals in Gold Loan.
Your Gold is checked for purity and weight, and the market value is determined. You can avail of a loan of up to 75% of the market value of the Gold. Your Gold is deposited in a safe locker, and the money is transferred to your Bank Account or given in cash.
How to calculate Gold Loan interest?
Gold loan interest rates vary depending upon the lending institution, amount of loan availed, loan tenure, loan to value ratio, and quality of gold. One can easily check and compare these rates online.
How does Gold Loan work?
The gold loan works like any other secured loan; you submit your gold along with the required documents with the lender. The loan amount, rate of interest, and other terms are then decided based upon the valuation of your gold. Once everything is finalized, your gold is securely locked away, and the loan amount is either transferred to your bank account or given in cash.
How to take Gold Loan?
To take a gold loa,n you can visit the nearest banking or NBFC branch that offers gold loan service along with your gold and basic documents like Aadhar Card and PAN Card.
What is the Gold Loan interest rate?
Gold loan interest is the monthly amount a borrower pays in addition to the principal loan amount. Different banks and financial institutes offer different rates of interest. On average, this rate varies between 10.50% and 12% per annum.
How to get a Gold Loan license?
If you want to dive into the gold loan business,s then you shall get approval from the RBI. You will need to submit the required documents along with the application form to the RBI and get yourself registered.
Alternatively, you can also register as a Nidhi Company. It is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Its core business is borrowing and lending money between its members.
Lowest Gold Loan interest rate in which bank?
Currently, Other Bank is offering the lowest rate of interest for a gold loan starting at 10.50% per annum. Other Bank grants a loan with an LTV (Loan to Value) Ratio of 75%.
How much Gold Loan can I get per gram?
Depending upon the purity of your gold, banks offer gold loans between ₹ 3,506 to ₹ 4,621 on per gram of gold.
Which bank is best for Gold Loan?
Other Bank currently offers the best gold loan services in India. Starting with the low rates of interest, Other Bank offers various other facilities like a personal locker for your gold, same day disbursement of the loan amount, and the highest LTV ratio, to name a few.
What is a Gold Loan scheme?
A gold loan is a scheme that provides a loan against your gold. Any person in need of quick lump sum money can avail of this facility that is offered by all the leading banks and non-banking financial companies.
What happens if Gold Loan is not paid?
Not paying your gold loan will lead to a decrease in your credit score, making it difficult to avail of a loan in future and also will make you liable to face legal actions by your lender. These legal actions may include prosecution under the law, extra charges and fines, confiscation and auction of your gold.
You should always pay back the loan on time, and if in case you are unable to do so because of some reason, then you should inform your lender of the same and ask for relief.
How to calculate Gold Loan interest in excel?
You can calculate gold loan interest in excel using the following formula; =PMT(RATE, NPER, PV) where RATE refers to the rate of interest which is applicable to the loan amount, NPET refers to the total number of monthly instalments you need to pay or the loan tenure period. PV stands for the principal loan amount.
Which Gold Loan is the best?
Other Bank Gold Loan stands tall and is the best option currently available in the market. Other provides a range of facilities starting with lower interest rates, less paperwork, quick disbursal, the highest LTV ratio, and a personal locker for the safety of your gold.
How is Gold Loan calculated?
The gold loan amount depends upon the purity of one’s gold and the current market gold rate. The rate of interest is then calculated based upon a number of factors including, loan amount, loan tenure, relationship with the lender, and loan to value ratio.
How much Gold Loan can I get?
Most Banking and Non-Banking institutes offer gold loans with an LTV ratio between 65% and 75%. This means a person can avail a loan amount of up to 75% of their gold’s market value. This amount varies between Rs. 10000 to Rs. 50 Lakhs depending upon the purity of one’s gold and the customer’s loan requirement.
How to get a Gold Loan?
To get a gold loan, a person can either walk into the nearest gold loan offering bank branch with their gold and basic documents like Aadhar Card and PAN Card or they can fill an inquiry form.
What is the procedure for a gold loan?
The gold loan procedure is quite simple and straightforward. Borrower visits the lender with their gold articles and basic documents like Aadhar Card and PAN Card. The valuation of the gold is done,e and a loan amount and rate of interest are then offered to the borrower. Upon agreement, the gold is safely locked, and the loan amount is either transferred to the borrower’s bank account or handed over in cash.
What is the gold loan definition?
Gold loan means taking a loan by pledging your gold as collateral security. The loan amount is decided based upon the purity of gold, and an interest rate is fixed accordingly. The average gold loan tenure is between 6 to 12 months, with a maximum being 36 months or 3 years.
Which bank gives the highest gold loan?
Other Bank is currently the best bank to avail of a gold loan. They provide gold loans at an LTV ratio of 75,% which means you can avail a loan amount of up to 75% of your gold’s market value. The gold loan amount in Other starts at Rs. 25000 for urban areas and at Rs. 10000 for rural areas.
What is a gold loan overdraft?
Gold loan overdraft is the overdraft facility availed of your gold loan amount. That is, you can spend as much as you want and whenever you need but up to the allowed credit limit. The rate of interest is charged only on the amount that you use. The payment option in the overdraft facility is in a lump sum, and you can close it anytime.
How to calculate gold loan EMI?
Your gold loan EMI is calculated based upon three parameters, namely, P – principal loan amount, r – the rate of interest per month, and n – loan tenure in months.
The formula used for gold loan EMI is, E = P*r*[(1+r)^n/((1+r)^n)-1]
How to pay a loan against gold online?
A borrower can easily pay their loan EMI online using net banking, credit/debit cards, or UPI on their lender’s website. For some Banks and NBFCs, this facility is also available on Paytm wallet.
Where to take a Loan against gold?
You can take a loan against gold either by going to the nearest gold loan offering bank branch with your gold and basic documents like Aadhar Card and PAN Card, or you can fill an enquiry form and apply online.
How to renew a loan against gold?
The renewal process for a loan against gold is quite simple. When the loan tenure is about to end, the borrower needs to visit the lender along with all the documents and the agreement of their present loan. The lender takes the gold from the locker, and a revaluation of the gold is done on the basis of current market rates. The borrower then needs to fill a renewal form and pay a minimal renewal fee of 0.25%. The loan is then renewed.
Which bank has the lowest interest rate for a loan against the loan?
Currently, Other Bank is offering the lowest rate of interest for a gold loan starting at 9.99% per annum. Other Bank grants loans with an LTV ratio between 70% to 75%.
How to get a loan against gold?
Loan Against Gold is one of the most preferred products by customers for getting funds when in an urgent need. All you need to do is to take your Gold Ornaments to a Bank or Non-Banking Finance Company.
The Gold is checked for purity and weight, and then loan eligibility is calculated. You can avail of a loan of up to 75% of the value of the Gold. You deposit the Gold with the lender, and the money is transferred to your Bank Account.
How to apply for a loan against gold?
You can apply for a loan against gold by visiting any nearest bank branch offering the loan along with your gold and basic documents such as Aadhar Card and PAN Card.
What is the margin in a loan against gold?
Banks maintain a margin of at least 25% in the case of loans against gold. That is, a person can avail a maximum of 75% of their gold’s market value as the loan amount. For example, if your gold is valued at Rs. 1 Lakh in the market, then banks will offer you a maximum loan amount of Rs. 75,000.
What is the gold loan valuation?
Gold loan valuation is the process that is carried out at the lending bank’s branch by an authorised evaluator. The evaluator carries out the valuation of your gold and determines its market value. Based upon this valuation, the bank offers you the maximum loan amount you can avail of and also quotes a rate of interest.
Personal loan or loan against gold which is better?
A loan against gold is better in comparison to a Personal Loan for 3 major reasons.
- First, the Rate of Interest charged is much lower than the interest rate on a Personal Loan.
- Second, it is much faster to get money through a Loan Against Gold. From the time you walk into a branch, the total time required for getting your money transferred to your account is as low as 60 minutes.
- Third, the Loan Against Gold’s eligibility is independent of your income and credit history, which means that anyone and everyone is eligible for it irrespective of whether they are employed or not.
What is Gold Loan Auditing?
Gold loan auditing is the verification process for a gold loan application with the lender. After applying for a gold loan, the lender allows an auditor whose purpose is to verify the details of the applicant and decide whether the loan shall be processed or not.
How to calculate the EMI for a Loan against Gold?
To calculate EMI, you need the following three parameters, namely,
- P – principal loan amount,
- r – the rate of interest per month, and
- n – loan tenure in months.
The formula used for calculating gold loan EMI is, E = P x r x [((1+r)^n)/((1+r)^n)-1]
How to repay the loan against gold?
A loan against gold can be repaid in the following ways. Regular EMI option in which the EMIs include both the principal and interest amount. You can also repay only the interest amount as EMI of your loan, and the principal amount can be paid in full at the time of maturity.
One can also make partial payments of their interest and principal amount as and when they are able to. Another repayment option that banks provide is bullet repayment; in this, you have to repay the entire amount, including both the principal and the interest, at the end of the loan’s term.
How much loan can I get on 10 grams of gold?
Depending upon the purity of gold,d a person can avail of a loan amount between Rs.18,500 and Rs. 27,000 on 10 grams of gold.
When does the loan against gold become NPA?
When a borrower fails to repay their loan amount for a long period of time, the lender marks it as an NPA, Non-Performing Asset. A lender would usually allow one or two slip-ups in loan repayment, but if it continues even after three consecutive months, it is marked as NPA and bars the borrower from getting future loans.
What is LTV in a loan against gold?
LTV is Loan to Value Ratio; it is basically the amount of loan you can get against gold as collateral. In India, LTV for a loan against gold is set at 75% by RBI for all the banking and non-banking financial institutes. For example, if your gold is valued at Rs. 1 Lakh in the market, then at 75% LTV you can avail of a maximum loan amount of Rs. 75,000.
What is the interest rate for an agriculture gold loan?
Agricultural gold loans start at an interest rate of 7% per annum. A person is required to present proof of agricultural land and cultivation along with the basic documents such as an Aadhaar Card and PAN Card that are required.
What is an Agri gold loan?
Agri gold loan is a loan against gold, particularly for farmers, that are available for agricultural purposes. The loan amount disbursed under the Agri gold loan can only be used for agricultural and allied activities. One has to present the proof of agricultural land and cultivation along with the basic documents required for a loan.
What is Gold Loan EMI calculator?
Gold loan calculator is a tool used to calculate the worth of one’s gold and the loan amount one is eligible for based upon the weight and purity of their gold. It is a fundamental tool to get an idea of how much loan a person can avail of against their gold.