Life is full of surprises. An unexpected expense can knock your door any. At this immediate situation you can use your asset and fulfil your financial need. You jewellery could be your cash cow. You can `always pledge your Gold to fulfil all types of needs. Ornaments, coins etc can be pledged to get Gold Loans .
Top 5 Banks offering Gold Loans
State Bank of India Gold Loans
State bank of India offers gold loans to individual who is at least 21 years of age and the owner of gold ornaments. The quantum of finance is minimum 10,000/- to maximum 20 lacs. Repayment period of 30 months is provided to the borrower. Processing fees of minimum Rs.256/- to Rs. 1022/- is charged on hallmarked and non hallmarked jewellery. The rate of interest is 12.20% which is 3% higher than the base rate. Special rate is offered to SBI account holders.
Central Bank of India Gold Loans
Central Bank of India offers demand loan or overdraft against pledge of gold ornaments of 22ct gold purity or gold coins sold by the bank. The quantum of finance is minimum 10,000/- to maximum 20 lacs. The loan tenure period is of 36 months. In case of OD facility the limit is renewed annually. Processing fee of 0.25% is charged from the borrower. Rate of interest in case of demand loan is 10.65% and in case of OD facility is 11.65%. The maximum limit to loan per gram is Rs.2000/- per gram of gold ornaments or 70% of the current market price of 22 carat gold whichever is less.
Hdfc Bank Gold Loans
HDFC BANK is the only bank in market which gives gold loan without any documentation. Bank gives over the counter loan disbursement. HDFC Bank gives gold loans @ 12.50% to its customers. Bank charges minimum processing fee of 0.50% of the loan amount. Option for nil processing fee is also available with HDFC Bank. Foreclosure charges of 1% is taken from the customer. Nil FC option is also available with the bank.HDFC Bank has a special Sampoorna Bharosa Gold Loan Scheme. In this scheme gold loans for than 50,000/- is also available in rural market. Enjoy any time liquidity on your loan against gold. It can be repaid without any foreclosure charges. Under this scheme lower interest rates is offered to the customers. Also if you an HDFC customer you get great interest rates. Special rate are available for Preferred, Imperia & Classic and women customers.
Federal Bank Gold Loans
Federal Bank offers Gold Loans @ 13.00% to 13.50%. Customers can avail loan amount up to 75 lacs. Bank gives hassle free processing within few minutes. No hidden charges or heavy penalties are taken from customers .Repayment tenure is of 12 months. Borrower can repay the loan in instalments or lump sum amount. As a security 22ct gold ornaments will be pledged.
Axis Bank Gold Loans
Anyone between the age of 18 to 75 years can apply for gold loan in Axis Bank . It offer gold loans which ranges from 25,001/- to 20, 00,000/-. Same day loan disbursement facility. Rate of interest is on a higher side as compared to the lenders. Axis bank charges 14.50 % to 17% p.a. Processing fee of 1% is charged. Bank collects Rs.500/- towards the valuation charges. Customer can foreclose the loan any time without paying any charges. Axis bank offers flexible tenure ranging from 6 months to 36 months.
Other than the above banks NBFC’s like Muthoot Finance and Manappuram Finance are the two very active players in loan against gold jewellery .Mortgaging gold jewellery has a history attached to it. Remember Lalaji in bollywood movie used to mortgage gold of helpless villagers and in return lend money to them to meet their urgent financial needs. This role is now taken over by the banks and other financial institutions. The lenders charge the interest on gold loans on the basis of the ratio of the loan to the value of the gold ornaments which is popularly known as LTV Ratio. We at letzbank.com help you to get the best deal in the market. Allow us to give our quick and prompt service to you. Just logon to Letzbank and avail our unique services.
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