SBI gold loan per gram gives you an estimate of the amount of loan you can get against your gold jewelry. You're going to get the mortgage on the idea of the purity and gold fee of your jewels, balanced for the mortgage-to-price ratio.
Gold Loan Calculator
Gold Loan Calculator gives you an estimation of the amount of the gold loan that you can use based on the following factors
Purity and net weight of gold used in jewels: The bank will use its internal value to assess the purity and net weight of gold in your jewels. Gold used in the jewelry should be of purity of 18 to 24 carats. Banks will also decrease the weight of gems and gems in jewelry to calculate the net weight of the jewelry. This value will give its conclusions in writing.
Gold Price: If the value calculates the purity and net weight of gold in your jewels, the Bank can average it by the price of gold in order to determine the value of gold. RBI directed the banks to apply the average price of the last 30 days of 22-carat gold adjusted for gold purity. So, if the gold is pure 20 carats, SBI will apply the 30-day average of 22-carat gold multiplied by a factor of 20/22 to adjust the value of the gold
Loan to Value Ratio: When the value of jewelry is calculated, Institution applies an LTV of up to 75% to calculate your jewel loan amount eligibility. If you are prepared to take a loan amount below your maximum LTV, Bank can offer you a lower interest rate
Tips for obtaining the best golden loan amount per gram.
Banks accept both hallmarked and non-hallmarked jewelry for getting a gold loan. However, you can get the highest gold loan per gram for Hallmark jewels, as it reduces the chances of undervalued by the valuer. As well, some banks charge lower processing fees for hallmarked jewelry.
Through SBI Gold Loan it is adjusting the price of 22-carat gold for the purity of gold. Therefore, always try to borrow against jewelry of higher purity as it will return you the highest amount for the gold loan.
SBI will calculate the net weight of jewelry to calculate the amount of loan against the gold you can get. Always, try to choose jewelry that has minimum gems and stones. Most of the banks will reduce the weight of gems and stones from the total weight of the jewelry. It will draw on the report of its gold assessor to calculate the net weight. Plus the weight of gems and stones in jewelry, plus the net weight and value of jewelry which translates into a lower amount of jewelry loan, you may be eligible to get further, Bank will not accept diamond jewels if the gold used is less than 18K. Most diamond jewelry is made of 16K 18K gold and therefore, will result in a very small gold loan per gram.
Always attempt to obtain the maximum LTV on the value of the gold. SBI is authorized by RBI to charge up to 75% LTV to calculate your eligible gold loan amount.
Advantages of the gold loan?
Faster handling – Gold loans are guaranteed loans that thus have leniency eligibility requirements and limited paperwork. It does not even need a credit score for the acceptance of the loan. As a result, lenders usually disburse the loan in just a few hours.
Higher interest rate – Relative to unsecured loans, such as personal loans, gold loans, which are insured loans, charge lower interest rates. Even if you bind another asset as collateral, the interest rate of the gold loan may be reduced further.
No payment costs – Many banks and NBFCs charge nil processing fees for gold loans. And if the lender charges the processing fee, it is normally 1%.
No foreclosure charges – Some lenders do not charge any prepayment charges, and other banks charge a pre-payment penalty of 1%.
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