Bank of Baroda offers gold loan in the form of demand loan to those who own gold jewellery/ornaments at an interest rate of 2.00% plus strategic premium plus one-year Marginal Cost-Based Lending Ratio (MCLR). The bank charges 0.50% plus service tax as a processing fee on the gold loan. The maximum loan that can be availed as Bank of Baroda gold loan is Rs.10 lakh and the loan must be repaid within 12 months.
|Interest Rate||1-year MCLR + Strategic Premium + 3.00%|
|Processing Fee||0.50% plus service tax|
|Minimum Loan Amount||Rs.0.25 lakh|
|Maximum Loan Amount||Rs.10 lakh|
|Repayment||Up to 12 months|
Anyone who owns gold jewelry or ornaments can avail a gold loan from Bank of Baroda. The loan will be in the form of a demand loan and can be used for any purpose except for speculative purpose.
You can determine how much loan you are eligible for by using the Gold Loan Calculator tool that is available on the website of many lenders and third-party websites. You just need to enter the weight of your gold ornaments or jewelry and the tool will calculate and display the loan amount you are eligible for. Some of the lenders may also ask you to enter the type of gold, repayment tenure, and your details such as name, contact number, etc., in the gold loan calculator tool.
A customer must submit the following documents to apply for a Bank of Baroda Gold Loan.
The gold loan from Bank of Baroda will be offered in the form of a demand loan.
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 12 months to repay Bank of Baroda gold loan.
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