India has been in a love affair with gold from centuries that it earned its name as Golden Sparrow. Over the years India’s infatuation with gold has grown stronger and stronger, with India being the top consumer of gold in the world.
Gold in India is respected in many forms; as it is religiously significant, a family heirloom, gifting option, status symbol and a nice form of investment. People decorate their brides with gold till they surrender under the weight. Tons of gold is given as offering in temples. People love to flaunt their jewelry and possessions; the more gold a lady has the wealthier she is. Quantity of your gold is proportional to your social status. With an investment point of view, in small towns and villages people are unaware of different investment options. So in the case of limited investment options, possession of gold is sort of a given. When in utmost financial crisis, gold is mortgaged or sold to improve one’s family conditions.
As the name suggests, it is the loan given against gold. Many nationalized and private banks and other financial institutions provide this loan against idle lying gold ornaments at attractive rates. Many people nowadays are opting for this loan to meet their certain requirements and also it is better to obtain loan against your gold rather than stuffing it in their bank lockers. While opting for gold loan check the interest rates in various banks and private finances. Following lists the features associated with different gold loan providers in India.
Muthoot Finance Gold Loan
- Quick loan disbursal and fast processing with minimal documentation.
- Loan amount varies from ₹ 1,500 to ₹ 1 crore.
- Pre-payment option without any penalty.
- In-house gold evaluation and safe custody.
- Interest rates vary from 14% to 24% depending on various schemes offered.
- Loan repayment tenure up to 15 months.
Manappuram Finance Gold Loan
- Quick loan disbursal and fast processing.
- Provides loan at higher points based on purity, net weight of gold.
- Loan amount varies from ₹ 1,000 to ₹ 1 crore.
- Minimum Requirements: Only one recent ID-Voter ID/ Ration Card/ Driving License/ Passport.
- Interest rates vary from 12% to 26% depending on various schemes offered.
- Loan repayment tenure up to 12 months.
HDFC Bank Gold Loan
- Quick loan disbursal.
- Loan value starts from ₹ 50,000. Loan below ₹ 50,000 is also provided for rural markets.
- Documents required: Passport/ Driving license/ Voters’ ID card/ Aadhaar Card and PAN Card with 2 passport size photographs.
- Interest rates vary from 11.5% to 13% depending on various schemes offered.
- Loan repayment tenure from 6 months to 48 months.
SBI Gold Loan
- Loan value ranges from ₹ 20,000 to ₹ 20 lacs.
- Documents required: Proof of identity, Proof of address, application form along with two passport size photographs.
- Interest rates vary from 12.55% to 16.65% depending on various schemes.
- Loan repayment tenure is up to 30 months (for Demand loan) and 36 months (for Overdraft).
ICICI Bank Gold Loan
- Quick and easy processing.
- Loan value ranges from ₹ 10,000 to ₹ 15 lacs.
- Documents required: Proof of identity, Proof of address, two passport size photographs and Proof of land holding in case of agriculture loan of more than ₹ 1 lac.
- Interest rates vary from 10% to 16.5%.
- Loan repayment tenure ranges from 6 months to 12 months.
Axis Bank Gold Loan
- Same day loan disbursement and safe keeping of your ornaments.
- Earn 150 eDGE loyalty points on loan disbursement.
- Loan value ranges from ₹ 25,000 to ₹ 20 lacs.
- Documents required: ID, address, age and signature proof, Application form. 2 passport size photographs and PAN Card.
- Interest rates vary from 14.5% to 17%.
- Loan repayment tenure ranges from 6 months to 36 months.
So above mentioned are some of the options available in the market. Each one ups the other with some feature or the other. As far as you are not emotionally linked to your gold ornaments this is the best option. However, nothing like this can help you during your difficulties and with the fall of dollars and euros, it is believed that loan against gold is a safe bet.