Gold Loan Overdraft Scheme


A gold loan is a rapid and sure-shot answer for any medical emergency, higher education for your child, company investment, family trip, or destination wedding. In comparison to other forms of lending, secured loans have lower interest rates COVID-19 pandemic-induced nationwide lockdown has had a tremendous influence on the country's economy, causing financial instability for many people and businesses. Some people have little choice but to tap into their savings, sell their belongings, or take out loans to pay their financial obligations in order to cope with this uncertain circumstance. Another advantage of taking out a gold loan is that it comes with features like flexible eligibility requirements, little documentation, and speedy loan disbursement. All of these qualities make the Gold loan a popular choice among customers in need of immediate finances.

Comparison Between A Gold Loan With Overdraft Facility And EMI Options

 Gold loans are available in a variety of programmes, depending on your financial needs. The ‘Gold Loan with an EMI option' and the ‘Gold Loan with an Overdraft facility are the two most common and popular plans. 


1. A Gold Loan With The Facility Of Overdraft:- A gold loan with the facility of overdraft works similarly to a credit card. You can spend according to your needs and requirements up to your credit limit based on the value of your gold loan. Only the amount consumed is subject to interest. The interest rate is variable and fluctuates from year to year. Smaller emergency needs and normal business capital requirements are best served by a gold loan with an overdraft facility. When you deposit gold as collateral with your lender, they open an overdraft account to which the loan amount equal to the value of the gold offered is credited. Some banks allow you to withdraw the amount of your gold loan from any bank's ATM using your debit card. Some even allow you to link it to your savings account or create a new overdraft. Canara Bank Gold Loan is a new gold loan scheme with a lower interest rate of 7.85 per cent for a variety of industries.  In the case of overdraft facilities, the interest rate is significantly greater than typical. In addition, unlike a gold loan with an EMI option an overdraft facility payment option is a lump sum payment tan be stopped at any time.

2. Gold Loan With The Facility Of EMI Option:- A credit facility in gold loan with an EMI option. You need to pledge your gold as collateral for the loan amount. When you choose a gold loan with an EMI option the loans interest rate and term are set in stone. This service is provided by NBFCs and banks. Banks normally provide a minimum of 80% of the worth of gold. A walk-in credit facility is a gold loan with EMI options. You simply go to the lender‘s local branch and promise your gold to fill out the relevant paperwork. You obtain a fixed amount loan for fixed-term with recurring payment in the forms of EMIs based on the lender institution’s regulations. This service is provided by both NBFCs (Non-Banking finance companies) and banks.  Banks normally lend at least 80% of the gold‘s worth as a loan. NBFCs, on the other hand, will lend you up to 60% of the value of the gold. There is also a limit to the amount of money a lender can lend.SBI, Manappuram, HDFC, Axis, Yes Bank - Gold Loan Per Gram The current gold loan rate per gramme for 22-carat gold is 3,350, and for 20-carat gold it is 3,045. The decision between a gold loan with an EMI option and a gold loan with an overdraft facility is based on your preferences and financial needs. With an overdraft, you simply have to pay interest on the amount borrowed. In the case of a gold loan with an EMI option. However, the interest computation is different. For making planned expenses, a gold loan with an EMI option is the ideal option.