Gold loan eligibility criteria is easier to meet than a personal loan as maintaining a credit score can be a headache and in India, a ton of people don’t even use credit cards but everyone does have at least some amount of investments in gold loans due to cultural traditions. Gold loan is a secure and fast way of securing loans when in a financial emergency. Gold loans have very basic criteria such as the gold article and basic KYC information such as Adhar card and pan card. Address proof of the clients such as ration card or electricity bill or lease signed for rentals.
Although based on the bank, you are also required to provide salary slips, proof of profits if you are self-employed. Some banks don’t even require proof of employability.Useful for self-employed personnel This loan is also useful for farmers, traders, businessmen, etc. Minimum 18-carat - Although a catch is that the gold needs to be of at least 18-carat purity. No gold loan can be secured without this mark. Loan values tend to be between 80-90% of the market value of your gold. If you have spare gold it can be a great way to get a loan and meet your financial emergencies.
Security- Banks generally provide insurance for the security of the object sometimes at an added value or with the loan itself. The articles are kept in a safe but the insurance is generally counted as necessary.Failure to repay - This is the most important part of a gold loan as the bank holds the right to sell the article upon the disability of the person to pay back the loan. Interest rates on gold loans
SBI gold loan - SBI provides gold loans of from Rs. 20,000 to Rs. 50 lakh. They have three types of gold loans
Gold loan
Liquid gold loan
Bullet repayment gold loan
The gold ornaments are verified for their authenticity. Processing fees are 0.25% of the loan amount along with 25rs. Plus GST. if applied through YONO there are no taxes applicable.
A loan is provided to anyone above the age of 18. Anyone employed or self-employed including pensioners can apply for the loan. No proof of income is required.The repayment period ranges from 12 months to 36 months.The repayment period starts from the month after the repayment.Documents required are just ID proofs such as Adhar card, pan card or driving license. Witness Letter incase of illiterate borrowers is required. DP notes and delivery letter are required at the time of disbursment. Gold ornaments take delivery letter and arrangment letter at the time of disbursment. Gold loans interest rates vary from 7.50% to 7.30% for SBI housing loan customers.
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