In This Article, We Will Discuss All you need to know about the top bank State Bank of India Gold Loan ( SBI Gold Loan).
A gold loan is a secured loan availed against the mortgage of the gold asset to meet short-term personal as well as business needs such as paying education fees, medical bills, home renovation, wedding, or travel expenses. It is a better option than a personal loan as you don’t require any income proofs or credit score to get a gold loan. Also, the rate of interest on an SBI gold loan is lower than a personal loan.
Everything about SBI Personal Gold Loan
State Bank of India, the largest public sector bank in India, provides a gold loan to both existing and new customers. You can avail a gold loan from SBI bank for a tenure of 3 months to 36 months.
SBI Gold Loan
SBI Eligibility, Interest Rates, and Repayment Options
- Rate of Interest
SBI provides a gold loan at 0.5% above the MCLR rate. Presently, the rate of interest on a gold loan is 7.50%. SBI Realty Gold Loan, which can only be availed by SBI home loan borrowers can be availed at 7.00% rate of interest. If you have a gold relationship with the bank, the bank may offer you special concessional rates on a gold loan.
- Other Charges
The bank also charges 0.50% of the loan amount, a minimum of Rs. 500 as a processing fee on a gold loan. There are no prepayment charges on a gold loan.
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To avail SBI gold loan, borrowers must be 18 years and above.
- Loan Amount
You can get up to 75% of the value of the gold. The loan amount for a gold loan can range from Rs 20,000 to Rs 20 Lakhs.
- Repayment Options
Borrowers of gold loan can repay the gold loan with a bullet repayment method. Under this method, the principal amount of the loan can be paid at the end of the maturity period. The interest on the gold loan amount is paid every month as EMI, thus reducing the burden of high EMI.
- Gold Loan for agriculture
SBI provides gold loans to farmers for fulfilling farming needs. They can avail a gold loan for agriculture by giving proof of their agricultural activities. The interest rate for a gold loan for agriculture can range between 7%-9.95%.
- Type of gold accepted
Banks mostly accept gold up to 50 grams with a purity of 18 to 22 carat.
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How can you avail SBI gold loan?
To apply for an SBI gold loan, you would require to submit the following documents:
- Application for Gold Loan with two copies of photographs.
- Proof of Identity with proof of Address
- Witness Letter in case of illiterate borrowers.
You can apply for a gold loan by visiting the bank branch or by submitting an online application for a gold loan and submitting the documents as mentioned earlier. If you visit the bank, banks will ask you to fill in the application form for a gold loan and then evaluate the value of gold. After assessing the value of gold, they would check loan eligibility for sanctioning the gold loan. If you meet the eligibility criteria, they may finalize the terms and conditions of a gold loan, mentioning the gold loan amount, tenure and rate of interest etc. They would also ask you to submit the required documents. Bank will keep the gold safely in a locker, and when you repay the loan, it will return you the gold.
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Thus, when you can need short-term funds for personal needs, you can avail a SBI gold loan. A gold loan is one of the most viable options to get finance at lower interest rates.