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Sunday, 11 July 2021

Many banks, including SBI and Canara Bank, are offering gold loans at less than 8% interest, even with a bad Sibyl score.

 Many banks, including SBI and Canara Bank, are offering gold loans at less than 8% interest, even with a bad Sibyl score.

 Many banks, including SBI and Canara Bank, are offering gold loans at less than 8% interest, even with a bad Sibyl score.


People are taking help of gold loan to face the problem of money in Corona period. The biggest reason is that it is easy to get a loan at a low interest rate. Many banks in the country are offering loans at an interest rate of less than 8%. If you are also thinking of taking a gold loan, first find out which bank and NBFC are offering the loan at what interest rate.


Which bank is giving loan at what interest rate?

Bank interest rate (%) Maximum loan amount (in Rs.) Duration (in months)

Punjab and Sind Bank 7-7.50 1 crore 36

Canara Bank 7.35 20 lakh 12

SBI 7.50 50 lakh 36

Punjab National Bank 8.75 25 lakh 12

Manappuram Finance 9.90 1.5 crore 12

Muthoot Finance 11.99 starting from 1.5 thousand 36


Increase the trend of gold loans

According to the latest figures available from the Reserve Bank of India (RBI), loans in the gold segment grew by 33.8% in May 2021, more than any other segment in the last 12 months. State Bank of India's (SBI) gold loan business grew by 465% to Rs 20,987 crore in the financial year 2020-21. Demand for gold loans is on the rise due to economic shortages in low income groups, micro units and rural areas.


Special matters related to gold loan

It does not look at your credit score

A gold loan is a type of secured loan. So it doesn't matter what your credit score is. You can get this loan easily and at low interest rate as compared to personal loan.


You can choose the repayment option according to your needs

The bank or NBFC gives you many options to repay the loan amount and interest. From there you can choose any option as per your need. You can pay in equal monthly installment (EMI). Apart from that you can pay interest when paying the principal amount together. This is called bullet repayment and the bank charges interest on a monthly basis.


Failure to repay the loan may result in confiscation of your gold

If you do not repay the loan on time, the lender has the right to sell your gold. In addition, if the price of gold falls, lenders may ask you to mortgage extra gold. It is advisable to take a gold loan only when you need money for a short period of time. It would not be appropriate to use it for large expenses such as buying a home.

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What documents are required for a gold loan?

If you take more loan then you have to give PAN card, Aadhar card etc. Proof of address must also be provided. You may also have to pay a bill for the place where you bought the gold.

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