A gold loan in India is a secured loan which is offered against collateral of gold | gold ornaments. Under such loan, the borrower has to pledge his/her gold | gold ornaments with the bank who lends the funds as gold loan. Gold loans can be a good source of short term cash in case of emergency. Gold Loan is available at lower interest rate than personal loan. The gold loan interest rates offered by banks is around 12% to 15% as on 20 Oct 2021 whereas the personal loan rates are in the range from 15% to 24% as on 20 Oct 2021
Gold Loan at lower Interest Rate 20 Oct 2021
A Gold loan in India is offered by several banks at a lower interest rate starting at 12% to 15% as on 20 Oct 2021 These loans allow you to repay them in maximum of 1 Years. Banks offer the best Home loan schemes and you can repay the loan through easy EMIs.
While opting for gold loan check the interest rates in various banks and select the best offered rate out of them.
Benefit of Gold Loan
- You need not submit any income proof for taking gold loan as it is given against physical security of your gold | gold ornaments. Most of the banks do not ask you any income proof, still some banks may need some documentary income proof.
- Minimal documentation is required, in most of the cases, only identity proof and address proof is enough.
- Gold Loan is available at lower interest rate than personal loan. The gold loan interest rates offered by banks is around 10.5% as on 20 Oct 2021 whereas the personal loan rates are in the range from 10.5% to 14.75% as on 20 Oct 2021
- Fast processing and approval. Whole process does not take more than 15 minutes in many banks. You have to just deposit gold, sign required documents and receive your loan amount.
- Processing fee is nil or very negligible. Even if there is some processing fee, if you negotiate, it can be waived off easily.
- You can repay the loan and close your loan account anytime.
- Guarantor is not required.