HDFC Gold Loan

Overview about HDFC Gold Loan

Gold is a lucrative investment, offering great returns at low risks, with Indians accounting for a major portion of gold purchased globally. A unique advantage of investing in gold is the liquidity it offers, with it easy to avail a loan against it. HDFC Bank offers a specialised gold loan scheme, Sampoorna Bharosa Gold Loan, designed to provide financial aid to individuals in lieu of their gold. Available across all HDFC branches in the country, it is an easy to avail loan which can be used to meet multiple financial requirements.

Features of HDFC Gold Loan

Some of the distinguishing features of HDFC Sampoorna Bharosa Gold Loan are highlighted below.

• Multipurpose loan – Loan amount can be used to meet any genuine financial requirement.
• Quick approval – Minimal documentation results in quick approval, minus any hassles and delays.
• Loan amount – Individuals can avail loan amounts which suit their needs, with HDFC Bank open to consider loan amounts on a case by case basis.
• Prepayment – Borrowers can prepay the loan, without worrying about excessive prepayment charges.
• Competitive interest rates – Interest charged by HDFC Bank on this gold loan scheme is highly competitive, with special rates offered under certain circumstances.
• Transparent – There are no hidden charges, with transparency maintained at all stages.
• Safety – The collateral pledged by individuals is kept safe, with a 3 tier sealing system in place.
• Low processing fee - Borrowers are charged a minimal processing fee, keeping general trends and competition in mind.
• Flexible repayment – The loan can be repaid through flexible EMIs, with borrowers having an option to choose a tenure which suits their repayment needs.

HDFC Gold Loan Interest Rates

Interest rates charged by HDFC on its Sampoorna Bharosa Gold Loan vary depending on the loan tenure, amount and borrower. Current rates range between 9.70% per annum and 20.18% per annum, with the quality of gold also playing an important role in determining this rate. Average rates charged by HDFC Bank fall in the range of 12-13% per annum, making it highly competitive.

HDFC Bank offers special rates to women and existing customers of their products and services.

Note: Rates mentioned above are as of May 2016, with these rates subject to change without any notice. Applicants should check the rates applicable before availing a loan.

Eligibility criteria to avail HDFC Gold Loan

Individuals who wish to avail this gold loan need to satisfy a few basic criteria.

• Income – Applicants should have sufficient income to repay the loan amount.
• Security – Applicants can avail this loan only on providing security in the form of gold.

Documents required for HDFC Gold Loan

HDFC has minimised the documentation process for this loan offering, with a single page procedure in place. The following documents need to be submitted in order to process an application.

• Valid ID proof – Valid government approved ID proof (PAN card, Passport, DL, etc.)
• Valid address proof – Valid government approved address proof (utility bill, passport, Aadhar card, ration card, etc.)
• Application form – Duly filled and signed application form

HDFC Bank might ask for any other documents it feels are necessary to complete application formalities.

Fees and charges associated with HDFC Gold Loan

The table below highlights the various charges associated with this gold loan.

*Note: HDFC Bank may choose to waive the processing fee, at its sole discretion, based on its relationship with a borrower.

HDFC Gold Loan FAQs

1. How long does it take to get a loan application approved?

   HDFC’s Sampoorna Bharosa Gold Loan has been designed as an over the counter loan, with it possible to avail a loan in under an hour, subject to applicants meeting certain basic eligibility criteria.

2. What is the repayment tenure for this loan?

   This loan comes with flexible repayment tenures, ranging between 6 months and 4 years.

3. What is the minimum loan amount offered under this scheme?

   A. The minimum loan amount has been kept at Rs 50,000 for urban markets. Rural borrowers can avail loans below this amount, with HDFC Bank open to offer loans on the basis of individual requirement.

4. Are there any purposes for which this loan cannot be used?

   Yes, this loan can be used only for personal/business use, with HDFC prohibiting the use of this loan to purchase gold, land or market speculations.

5. Is it possible to get a lower interest rate on this loan?

   Yes, existing customers can negotiate interest rates with the bank, availing an opportunity to lower rates.

6. Can one apply for this loan online?

   Yes, individuals can apply for this loan online, by logging onto the official website of HDFC Bank, India.