Due to the COVID-19 pandemic, businesses have endured losses, and families have been shattered. Millions of people losing their jobs have become the talk of the town. In such times, tiding over financial problems is quite challenging. However, if you have idle gold lying in your home, you can use it to finance your needs, such as medical emergencies, education, wedding, travel, debt consolidation, etc.
Getting a gold loan is the best way to manage your finances when you do not have any other means. It is an unsecured loan that requires you to pledge your gold items as collateral. It offers the quickest way to access funds to cater to your financial requirements. So, if you are searching for a ‘gold loan near me’ on the internet, there are several banks and non-banking financial institutions that offer gold loans at affordable rates.
Benefits of getting a gold loan
- It is the most secured loan available in the market as your gold jewellery is pledged as collateral.
- You can determine an interest rate specific to your needs through an online gold loan interest rate calculator.
- Since your gold acts as collateral, there is minimum documentation involved to get a loan.
- Anyone with legal possession of gold can apply for a gold loan to meet their financial needs.
- Generally, a gold loan gets approved within just hours after the valuation of the gold items and submission of the relevant documents.
- The value of the loan is determined based on the value of the gold. You can secure up to 80% of the value of the gold as a loan.
- It serves multiple purposes, which means that the gold loan amount can be used for almost anything. For instance, education, wedding, home renovation, debt consolidation, etc.
Gold loan interest rate
Compared to other loans in the market, a gold loan has a lower interest rate. However, your interest rate depends on factors such as age, income, credit score, loan tenure, loan amount, current financial obligations, etc. To secure a lower interest rate, you must convince your lender that you are a trustworthy borrower and can repay the loan without fail.
You can use your lender’s online gold loan interest rate calculator to determine your qualification for a lower interest rate.
Financial institutions that offer lower gold loan interest rates
If you search for a ‘gold loan near me, you will stumble upon the following financial companies that offer the lowest gold loan interest rate:
- Muthoot Fincorp Limited
Interest rate: 12% per annum
Loan amount: up to Rs. 30,00,000/-
Tenure: 6 months to 36 months
Processing fee: Rs. 12 to Rs. 20
It is worth noting that Muthoot Fincorp has multiple gold loans available that serve the specifics needs of borrowers. Each type of gold loan has specific features and benefits. The interest rates start from as low as 12% and can go up to 24%.
- HDFC Gold Loan
Interest Rate: 9.90% onwards
Loan Tenure: 3 months to 24 months
Loan Amount: Starting at Rs.25,000
Processing Fee: 1.5% + GST
Custody: Stored under a unique triple-layered security
- ICICI Bank Gold Loan
Interest Rate: 11% p.a. onwards
Loan Amount: Rs.10,000 to Rs.1 crore
Tenure: 3 months to 12 months
Processing Fee: 1% of the loan amount
Documentation Charges: Rs.199
- Manappuram Finance Gold Loan
Interest Rate: Up to 29% p.a.
Loan Amount: Rs.1,000 to Rs.1.5 crore
Tenure: 3 months to 12 months
Processing Fee: Rs. 10 while settling the loan amount
- Federal Bank Gold Loan
Interest Rate: 8.50% p.a. onwards
Loan Amount: Rs.1,000 to Rs.1.5 crore
Tenure: 6 months
Rate per gram: Maximum amount per gram is up to 85% of the gold price
- Bank of Baroda Gold Loan
Interest Rate: 8.75% p.a. onwards
Loan Amount: Rs.25 lakh (maximum)
Tenure: Up to 12 months
Processing Charges: 0%- 0.5% of the sanctioned limit
- Canara Bank Gold Loan
Interest Rate: 7.65% per annum
Loan Amount: Rs. 5,000 to Rs. 20 Lakh
Tenure: 6 months to 2 years
Processing Charges: 0.25% of the loan amount
- Axis Bank Gold Loan
Interest Rate: 12.50% per annum
Loan Amount: Rs.25,000 to Rs.25 lakh
Tenure: 3 months to 3 years
Processing Charges: 1% of the loan amount
Conclusion
There are several options you can opt for to apply for a gold loan. You can apply through a bank or non-banking financial company. Before applying for a loan, you will have to ensure that you meet the eligibility criteria and can avail of the lowest interest rate based on the eligibility factors. You can also use your lender’s gold loan interest rate calculator to figure out the rate you can avail yourself of.
