Gold is an indispensable component in the Indian way of life, with residents owning over 20,000 tonnes of this metal. Apart from playing an intrinsic role in festivities and celebrations, gold is one investment which offers financial liquidity, with it easy to avail a loan by pledging gold. SBI offers its patrons a unique product, SBI Personal Gold Loan, through which they can avail a loan against their gold ornaments/coins. This loan can be used to meet any personal financial requirement, with easy repayment options available.
SBI Personal Gold Loan comes with a host of attractive features, some of which are mentioned below.
The interest charged by SBI on its gold loan relies on the base rate in place, with the final interest depending on a number of factors. Interest rates for SBI Personal Gold Loan Scheme range between 13.05% per annum and 17.65% per annum, with SBI having the sole discretion to change or modify rates. Borrowers are expected to check the current prevailing rates before applying for a loan.
Note: Rates mentioned above are as of May 2016 and are liable to change.
Individuals who wish to avail a loan under this Gold Loan scheme need to satisfy a few basic eligibility criteria.
Unlike other banks, SBI charges a nominal fee to process an application, with this amount depending on the quality of gold offered as collateral.
|Gold quality||Processing fee*|
|BIS Hallmarked gold ornaments||0.50 % of loan amount, subject to a minimum of Rs 250 and maximum of Rs 500|
|Ornaments with no Hallmark||
*Note: Applicants will have to pay the applicable GST along with the processing fee.
A 25% margin is applicable on this gold loan.
The minimum loan amount offered under this loan scheme is Rs 20,000.
Loans can be availed either in the form of an overdraft or a demand loan.
Yes, a demand loan has a maximum repayment tenure of 30 months, while it is 36 months for an overdraft.
The repayment process begins immediately, with a borrower expected to pay EMIs a month after the loan has been sanctioned. For example, if the loan was availed in January, loan repayment should begin by February.
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