You can get a loan against gold easily and at a better rate, because in this the bank does not have the fear of losing its money. But the question is, where to take gold loan.
It is believed that gold can give you great financial help in difficult times. Many times such situations arise when you need more money at once. In such a situation, in case of emergency, you can take a gold loan using the gold kept at home. You can get a loan against gold easily and at a better rate, because in this the bank does not have the fear of losing its money. But the question is, where to take gold loan. Let us know at what rate the top 5 banks are giving gold loan.
Gold loan interest rates in top-5 banks
1- HDFC Bank
If you take a gold loan from this private bank, you may have to pay interest ranging from 8.50 percent to 17.30 percent. This interest rate may be different for different periods and different amounts. At the same time, you will have to pay 1 percent of the total loan received as processing fee.
2- Central Bank of India
If you approach Central Bank of India for gold loan, you will have to pay interest ranging from 8.45 percent to 8.55 percent. You can take gold loan ranging from Rs 10 thousand to Rs 40 lakh. At the same time, you will have to pay 0.50 percent of the total loan amount as processing fee, which can be between Rs 250 to Rs 5000. Currently, you will not have to pay any processing fee on home loans taken till March 31, 2024.
3- UCO Bank
If you take a gold loan from UCO Bank, you will have to pay interest ranging from 8.60 percent to 9.40 percent and also a processing fee ranging from Rs 250 to Rs 5000. Your processing fee will be decided according to different amounts.
4- Indian Bank
Indian Bank can also be approached for gold loan. Here you may have to pay interest ranging from 8.65 percent to 10.40 percent for the loan. According to the bank’s website, you will not have to pay any processing fee on Jewel Loan (Non-Priority) or OD against Gold Jewels.
5- State Bank of India
If you take a gold loan from SBI, you will have to pay an initial interest rate of 8.70 percent. You can take a gold loan of minimum Rs 20 thousand and maximum Rs 50 lakh. There will be no processing fee on loans up to Rs 3 lakh and above that you will have to pay different prices for different amounts and loans.
When should one take gold loan?
You can turn to gold loan in many situations. Let us know 3 special circumstances in which you should take a gold loan.
1- In case of serious illness
If any member of the family falls seriously ill, a huge amount of money is spent. However, it is wise to prepare ourselves for these situations in advance. Take a health insurance policy and keep some emergency fund with you. But when all this does not work, then as a last option, you can choose to take a loan against the gold kept at home and can meet the hospital expenses with this because the value of anything is more than that of a person in your family. Can’t happen.
2- If you have to deal with wedding expenses
A lot of money is spent on marriage. Many times there is a need to borrow from others. In this situation you can use the gold kept at home. Compared to other loans, the process of gold loan is a little easier. It is easily available with less hassle and less paperwork.
3- For higher education
If your child or you are going out for higher education and are not able to get an education loan for some reason, then you can choose the option of gold loan as a second option.
What are the benefits of gold loan?
- Compared to other loans, the criteria for gold loan is quite easy. Credit score etc. does not matter much because the loan amount is given to you according to the value of your gold.
- In times of emergency, you need money immediately, in such a situation gold loan is helpful for you because it is available even at short notice.
- Gold loan is cheaper as compared to unsecured loans like personal loan, property loan, corporate loan.
- In case of gold loan, the borrower is given flexible repayment options to repay the loan.
Keep these things in mind
To take gold loan, age should be between 18 years to 75 years. The purity of gold kept as collateral should be 18 carat or more. One more thing to be noted in the matter of gold loan is that if you are not able to repay the gold loan within the stipulated time, then the lending institution has the right to sell your mortgaged gold. Apart from this, if the price of gold decreases, the lender may also ask you to pledge additional gold.
