Syndicate Bank has designed a unique product, SyndSwarna, a gold loan scheme to aid borrowers during financial emergencies. This loan primarily caters to borrowers from the non-agriculture background who wish to avail immediate financial credit against their gold. Given the fact that most Indian households have gold investments, this is ideal to cater to any immediate financial requirement.
SyndSwarna comes with a number of key features, some of which are highlighted below.
The interest charged by Syndicate Bank on its SyndSwarna loans are relevant to current market trends, with the rates changing accordingly. The current interest stands at 11.2% per annum (Base Rate + 1.5%), making it one of the lowest among contemporaries. These interest rates are subject to change at the sole discretion of Syndicate Bank and borrowers should check prevailing rates before applying for a loan.
Note: Interest rate mentioned here are as of May 2016, with rates expected to change.
Applicants need to satisfy a few basic criteria before they avail SyndSwarna finance.
Individuals who wish to avail a loan under SyndSwarna need to submit the following documents.
Syndicate Bank can ask for any additional documents as per its needs and requirements.
The table below highlights the various fees and charges associated with SyndSwarna.
|Type of fee/charge||Amount|
|Processing fee||No processing fee|
|Late payment penalty||2% more than the actual interest rate. Here it amounts to 13.2%|
Note: Charges mentioned in the table are subject to change. Applicants should check prevailing charges at time of application.
The quantum of finance depends on the purpose, with a maximum of Rs 10 lakhs provided for non-priority needs. Individuals who wish to use funds for business purposes can avail loans up to a maximum of Rs 20 lakhs.
Interest is compounded on a monthly basis, with the final interest payable at the end of 1 year.
A bullet repayment scheme is in place for this loan, with the principal and interest to be paid at the end of 1 year.
The amount one can avail as loan depends on the purity of gold. Borrowers can currently get loans upto 66% of the value of gold kept as security. For example, if one pledges gold worth Rs 1 lakh, they can avail a loan of Rs 66,000 (approximately).