Bank of Baroda Gold Loan is a multipurpose loan product that will offer a financial advantage to people who own gold in form of ornaments, coins or jewellery. Borrowers can get loan against gold and they can use the loan amount to meet personal and business credit requirements. Bank of Baroda Gold Loan is also offered as an optimized variant to traders at competitive interest rates.
Bank of Baroda offers two types of gold loan - for traders and for individuals. The variants of Bank of Baroda Gold Loan are as follows.
All individuals who own gold in the form of ornaments, coins or jewellery can apply for this loan. A maximum of Rs. 10 lakh will be offered under this scheme which can be used for personal monetary needs.
This type of gold loan is offered exclusively to all sections of traders including partnership firms, proprietorship firms, individuals and joint borrowers who hold a license. A maximum of Rs. 2 lakhs will be offered under this scheme which can be used business related expenses.
Given below are some of the important features and benefits of Bank of Baroda Gold Loan.
|Scheme / Feature||BoB Gold Loan - General||BoB Trader’s Gold Loan|
|Maximum Limit||Rs. 10 lakhs||Rs. 2 lakhs|
|Minimum Limit||Rs. 0.25 lakhs||Rs. 0.5 lakhs|
|Repayment Tenure||Maximum 36 months||Maximum 60 months in case of loans and maximum 12 months in case of overdraft facility (subject to annual review)|
|Processing Charges||0.50% of the loan amount, plus GST||0.5% of the loan amount, minimum of Rs. 250 plus GST|
|Margin||Advance against gold ornaments, gold coins and jewellery will be 25% for loans up to Rs. 3 lakhs and 35% for credit facilities over Rs. 3 lakhs.||Advance against gold ornaments, gold coins and jewellery will be 25% for loans up to Rs. 2 lakhs.|
The rate of interest for Bank of Baroda Gold Loans are as given below.
|Gold Loan Scheme||Rate of Interest|
|Bank of Baroda traders loan against security of gold||One year MCLR + Strategic Premium + 2 per cent|
|Advance against security of gold||One year MCLR + Strategic Premium + 3 per cent|
The eligibility criteria for Bank of Baroda Gold Loan schemes are described below.
|Gold Loan Scheme||Eligibility Criteria|
|Bank of Baroda - Advance against security of gold||All individuals who comply with KYC norms and are owners of gold can apply for Baroda advance against gold ornaments.|
|Bank of Baroda traders loan against security of gold||All individuals, proprietorship firms, joint borrowers and partnership firms who are engaged in trading and owns a valid license (for all applicable cases) can apply for Baroda trader’s loan against security of gold.|
A customer has to submit the following documents to apply for a Bank of Baroda Gold Loan.
Bank of Baroda Gold Loan is a term / demand loan. However, the nature of Bank of Baroda Traders’ loan is overdraft / loan.
You can use the loan to meet the working capital requirements and for purchase of machinery & equipment for development of your business.
Yes, you will have to pay a nominal charge of 0.5% of loan amount as processing fee.
You can use the loan amount for all general purposes like education, travel, house repair, hospitalization etc. However, you cannot use it for speculative purposes like investment in a risky avenue.
The borrower can take up to 36 months to repay Bank of Baroda Gold Loan.
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