Gold Loan




Gold is one of the most precious and costly metals in India. Its value in our lives cannot be ignored because every person is attached to it emotionally. However, what is the point of keeping your gold in a closed drawer when it could help you in times of emergency. Taking a loan against your gold can help you to overcome any drastic situation.

Banks provide loan and asks for the security from the person willing for the loan. Minimum of paperwork and a person receive the money immediately. The security asked for is the gold that the individual applied for, owns. This is the collateral asked for by them.Also the interest rates are also affordable as compared to other loans. A gold loan is a loan in which money is provided to the loan applicant on the basis of the quality of the gold that the person owns. An added advantage of these Loans is that the person applying for these loans can even have a poor credit score. The banks do not ask for the income proofs or the previous credit history of the customer.

 

Features & Benefits

 

SL Particulars Bullet Repayment Without Bullet Repayment
1
Maximum Loan
2,00,000.00 Above 2,00,000.00
2
Maximum Repayment Period
1 (one) year 3 (three) years
3
PAN Requirement
Not necessary Must for every case
4
KYC Requirement
Fully Fully
5
Interest Charging method
Monthly (Compounding) Monthly (Compounding)
6
Repayment type
BULLET REPAYMENT of Principal & Interest on maturity. At the option of borrower (i) EMI Payment (ii) Principal Payment on due date and interest on monthly basis.
7
NPA
3 months after default i.e. 1 year

(i) 3 EMI default (ii) Non - servicing of interest for 3 months.
8
Purpose of Loan
1. House Building 2. House Repairing 3. Education 4. Personal consumption like marriage, birth day of near relative. 5. Travel 6. Consumption

9
Types of Gold which can be pledge
22 carat Gold Ornaments without stones. The gold bar can be taken for loan if proper purchase voucher is obtained.

10
Proof of ownership of Gold
1. Up to one lac loan: declaration by owner 2. Above 1 lac loan: i) Declaration by owner supported with declaration of surety/ witness, or any of the following ii) Purchase voucher, or iii) Asset declaration given to employer, or iv) Tax Balance Sheet, or v) Any other relevant document which can be legally relied upon.

11
Quantum of Loan: Fair Value- Last 3 month’s average value of gold. The bank may fix additional margin according to purity of gold
65% of Fair Value

i) Loan upto 2 years 50% of Fair Value. ii) Loan upto 3 Years 40% of Fair Value.
All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks – will observe public holiday on second and fourth Saturdays from September 01, 2015; and will observe full working days on Saturdays other than second and fourth Saturdays (referred to as working Saturdays in the Press Release). Consequent to this, the Reserve Bank of India has announced the following changes in its functioning with effect from September 1, 2015.


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