Capital Local Area Bank Loan Against Gold

The purpose of loan against gold offered by Capital Local Area Bank is to make the funds available for consumption or domestic or medical purposes. The advance can however not be used for speculative purposes.

Eligibility criteria for availing gold loan scheme

Only individuals can apply for Capital Local Area Bank Loan against Gold scheme.

Features and benefits of Capital Local Area Bank Loan against Gold

The features of loan against gold from Capital Local Area Bank are as follows:

1. If you are taking a term loan, the maximum loan offered is Rs.10 lakh and it is subject to a maximum of 70% of the valuation of the gold as per the approved valuer.
2. If you are taking an overdraft facility, then the maximum loan amount is Rs.5 lakh subject to the repayment capacity.
3. Margin is set at 30% of the security for term loan and 40% for the overdraft facility.
4. The security offered is the pledge of the gold that is duly valued by an approved valuer.
5. Third party guarantee is required.
6. The interest rate offered is:

   Product	Average rate of interest	Minimum rate of interest	Maximum rate of interest
   Loan against property	14.16% per annum	12.5% per annum	14.75% per annum

Note: The interest rates can be changed at the discretion of the bank. Please check the interest rate at the branch before applying for loan against gold.

Documents required for Capital Local Area Bank Loan against Gold

While applying for the Loan against Gold from Capital Local Area Bank, you will have to submit the following documents:

1. Income proof
2. Identity proof such as driving license, PAN card, Passport, Aadhaar Card
3. Residential proof Voter ID, Passport, DL, etc.
4. Other documents as expressed under the scheme.

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score