The Interest Rate of Gold Loan


image

The Interest Rates of Gold Loan is entirely dependent upon various underlying factors: the multiple banks, types of gold ornaments, purities, and others. Gold loan Rates sometimes could also depend upon the Gold Rates.

The rates for the gold changes every day. Gold Rate Today is 49,490.00 Indian Rupee. It daily fluctuates according to the share market price.

Various factors that determine the low gold rates:

Special deals – Keep an eye out for current offers and interest rates from different banks, as special schemes are launched regularly.

Compare bank deals for different loan amounts – Banks usually bid lower interest rates for more significant loan amounts and vice versa. Furthermore, since NBFCs have limited loan amounts of adjustable and swift service, their interest rates are usually higher.

Taken form of loan - In general, loans secured by Gold for agricultural purposes have lower interest rates. Similarly, if you were to use Gold as collateral on an overdraft, you might have to pay a heavy interest rate. Loans against Gold for agricultural purposes are typically sold at lower interest rates. Similarly, if you were to use Gold as collateral on an overdraft, you might have to pay a heavy interest rate.

Loan-to-Value Ratio (LVR) - The interest rate paid is proportional to the loan to value ratio. According to the new RBI circular, banks will lend up to 90% of the Gold as a loan to provide relief to gold loan borrowers.

Holder of a current bank account - Gold loans are occasionally made available to regular bank customers at a low-interest rate. As a result, whether you have a deposit, a fixed-income, or a loan portfolio, you can use it. According to the need of the individual Gold Loans, banks purposes various Gold loans are the holistic option for one who tries to apply for the gold Loans.

Following are the Features of the gold loans:

  • The interest rate on a PNB Gold Loan starts at 8.75 per cent.
  • Charges 0.70 per cent of the loan balance plus taxes as transaction fees.
  • The term of a Gold Loan will range from one month to twelve months.
  • Bank offering the lowest EMI per lakh on a gold loan with the lowest gold loan interest rate of 8.75 per cent and the most extended loan term of 12 months.
  • Prepayment of jewel loans is free of charge.


Eligibility - 

You may apply for a gold loan directly by visiting a branch or filling out an online application form. To get the latest gold loan rate rates and a comparison of all banks. We will provide you with a comprehensive comparison of all banks' gold loan schemes, determine your gold loan eligibility, and bind you to the best gold loan bank. The bank's customer service agents will contact you right away to schedule a branch visit. A loaned executive will also assist you in obtaining a loan, ensuring that the process is straightforward, easy, and fast.

Conclusion:

Gold Loans are loans that could help one in their rainy days. Bank gives the option to the person to choose according to his/ her convenience. The Loan tenures Interest rates and a loan could differ from one bank to another, but the specific factors such as processing fee, interest rates and presuming fees are mainly the same in every bank. Banks, on the other hand, levy a penalty on late payments. The punitive charge percentage will be higher than the current rate of interest or the amount owed. Over and beyond the applicable rate of interest, most banks impose a penalty fee of up to 2% per year. Over and above the applicable rate of interest, certain banks bill up to 24 per cent p.a. in punitive claim. But be cautious when choosing a scheme and make sure to review the penalty rate and other costs.

 

Comments