Gold Loan Interest Rate - SBI, Muthoot, Manappuram, HDFC Bank, All Banks

These loans are usually taken for short term requirements. Generally, these are used for children education, marriage and other financial emergencies in the family. Usually rate of interest on jewel loan is relatively low as it a secured loan for banks and NBFCs.

Gold Loan has the following benefits:

• Allows you to utilize your jewel holdings in times of urgent expense requirements and emergencies
• Low interest cost compared to personal loans
• Easy loans with no income proofs and no CIBIL checks required.
• Also allows first time borrowers and borrowers with bad credit to get loans.
• Helps improve CIBIL score, as timely repayment is recorded in your CIBIL reports
• Instant loans with turnaround time of few hours to 1-2 days
• Loan amounts of up to Rs 50 lakh also available
• No end use restrictions. The loan can be taken for any personal or business expenses
• No proof in the form of invoice or purchase bill of the jewelry required

We do not see any significant dis advantages of taking a gold loan except that you need to part away with your gold holdings and take them to the nearest branch of the lender for valuation and depositing it with the bank. RBI has specified strict guidelines for ensuring complete safety of your ornaments when they are pledged with a bank or a NBFC.
In addition to this, for salaried employees working with reputed companies taking a personal loan might be easier and come at a low rate of interest compared to gold loan.

You may not want to take a gold loan if:

• You are a salaried employee working with a large reputed company and have other easy loan options available
• You need a loan of more than Rs 50 lakh
• You need loan for longer tenures of more than 4 years
• You have other collateral to offer in the form of working capital, stock, property, securities etc.

You can apply in several ways.

• You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website.
• The facility of tracking your loan is available with the bank.
• You can also compare gold loan interest of all banks online at MyLoanCare and apply for jewelry loan through our website. We will assign a customer representative officer to you who will assist you in the loan process. You will get a call from our customer representative officer within a few minutes of filling the application form on our site, who will assist you with rest of the gold loan process. Before applying for a gold loan, calculate your eligibility with gold loan calculator.

Once you apply for a gold loan online through myloancare:

• you will be contacted by bank representatives who will explain the process, documents required and also schedule a convenient appointment for you to visit their nearest branch.
• Once your appointment is scheduled, you need to visit the branch with your jewelry. Your jewelry will be tested and valued by appointed valuers at the bank. If the jewelry passes the test and is in line with the specifications mentioned by you will applying, you will get the loan required. If the jewelry is found to be of lower purity or lower weight, you may be offered a lower loan amount.
• Also, remember that even if one piece of jewelry is fake, the bank may refuse to offer any loan to you.
• Once the jewelry is valued and loan amount is agreed and sanctioned, the bank will seal your jewelry in a packet in your presence and under CCTV recording. These packets are multi-layered to ensure complete safety of your ornaments.
• The jewels are than kept in bank safes in strong rooms maintained by the banks.
• The bank will simultaneously issue you a disbursement letter with loan amount and other details which have to be signed by you and the bank's representative.

The popular perception is that gold prices will never fall significantly in India. However, there have been situations, when gold prices in India have fallen rapidly. RBI allows a maximum LTV of 75% of the gold pledged. It also requires the lenders to maintain this LTV on an ongoing basis. Banks safeguard this LTV by extending EMI loans and also bullet loans where regular interest is paid every month. However, in case of sharp decline in gold prices, banks may do the following:

• The financial institution might ask for more collateral or gold to maintain the LTV
• The financial institution might request the borrower to partly pay a nominal amount which goes towards the principal
• In rare cases, if the borrower fails to make this payment, the gold can be auctioned after giving due notice period and multiple reminders to the borrower.

For an Indian, jewelry is extremely precious and close to heart. Yet, in times of need, you might need to mortgage them to meet your urgent expenses. At such times, you need to ensure that you get the maximum gold loan per gram. It is advisable to choose the mortgaged jewelry with the help of following guidelines:

• Specially minted gold coins of banks of up to 50 grams or 22 carat gold ornaments will offer you the best rates.
• If you offer hallmarked jewelry, you will be charged a lower processing fees and hence, your cost of loan will be lower.
• Lower purity gold ornaments of 18 and 20 carat will get your lesser amount of gold loan.
• Ornaments with a lot of other stones including diamond, pearls, ruby etc might not fetch you a good loan amount as banks deduct the weight of these stones to calculate the net weight of gold and hence, the loan amount you will be eligible for can reduce depending on the net weight.
• Avoid pledging your mangal sutras, as many banks as a policy do not accept mangal sutras as a valid mortgage, with the exception of few banks who accept mangalsutras without black beads as a valid security.
• Try to use larger pieces of jewelry in place of smaller items of gold

If any individual fails to pay his EMI, interest or principal repayment on time, he is sent a follow-up reminder by the bank. Banks also levy a late payment fees as penalty on the borrower. In case of genuine borrowers, the banks may also offer an option to extend the tenure of the loan or renew the loan facility. If the borrower fails to repay the loan in 3 to 6 months, he will be treated as a default customer and the bank will send him a legal notice asking him to pay his dues, failing which the bank has the right to confiscate the jewelry kept with them and auction it, if required.

These are generally taken for shorter time period. Generally the tenure is from 6 months to 36 months.

Yes, you need to have at least one functional bank account in your name. It is even better if you have an account with the same bank from which you would like to get a loan.

Yes, you can apply for jewelry loan jointly with a co-applicant (either be your spouse or your parents).

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her s CIBIL rating as well.

Yes, banks charge penal fee for late payment. The percent of penal charge can be over and above the existing rate of interest or above the overdue amount. Most banks charge penal fee up to 2% p.a. over and above applicable rate of interest. Some banks also charge up to 24% p.a. as penal interest over and above applicable rate of interest. So be careful while selecting particular scheme and do check the penal fee and other charges

Generally banks and NBFC's offer quick disbursement of jewel loan within an hour of walk-in at specialized loan branches. MyLoanCare can help you connect with your nearest bank branch. Play safe with your valuables and visit the branch only after your appointment is confirmed by us.

The documents required for availing gold loan are:-

• Two passport size photograph
• Identity proof (PAN card/ passport/ Aadhaar card/ voter id card)
• Address proof (Electricity bill/ telephone bill/ bank statement)

All existing customers get access to customer netbanking portal by login their user id and password.