Question: What Is Personal Gold Loan?

Is gold loan cheaper than personal loan?

The interest rate in both personal loan, as well as gold loan, varies.

As Gold loans are secured loans, so the interest rate on the gold loan is lower and starts at 9.90%.

However, the interest rate of a personal loan ranges from 10.45% to 26% per annum..

Who is eligible for gold loan?

In order to apply for a Gold Loan, you must be: A farmer, trader, salaried or self-employed professional, or businessman. Between 21 and 60 years of age.

How much is gold loan per gram in muthoot?

Muthoot Gold Loan Rate Per Gram by Gold PurityGold PurityGold rate per gram- average of past 30 daysMuthoot lowest Gold Loan per gram22 carat₹ 47,693₹ 2,79020 carat₹ 43,357₹ 2,53618 carat₹ 39,021₹ 2,283Nov 20, 2020

What is the difference between gold loan and personal loan?

If you have a regular source of income but no gold to keep as collateral, then personal loan is the only option for you. As gold loan is a secured loan, interest rate on it is less than personal loan, which is an unsecured loan. … But gold loans can be availed at an interest rate between 8-12%.

What happens if gold loan is not paid?

Auction: If full repayment of the loan is not made within the period of the loan, the company has the right to sell or otherwise dispose of the gold through public auction at the risk and cost of the borrower.

Is cibil score required for gold loan?

Good Credit Scores are not critical for Gold Loans RBI has made it mandatory for banks to do a CIBIL score check before giving out any loans to customers. … Gold Loans, on the other hand, require you to provide a fairly liquid tangible asset, ie, Gold, as collateral.

What is the rate of gold loan per gram in SBI?

SBI Gold Loan CalculatorEligibility CriteriaSBI Gold LoanGold Loan per gram₹ 2,646 to ₹ 3,234 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan Amount₹ 20 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows

How can I get gold loan from SBI?

Application for a gold loan with two copies of photographs, proof of identity with proof of address, and witness letter in case of illiterate borrowers are required for availing gold loan from SBI. The minimum loan amount one can take is Rs 20,000 and the maximum is Rs 50 lakh, according to SBI.

Which bank is better for gold loan?

Best Banks for Gold LoanBankInterest RatesLoan AmountFederal Bank8.50%₹ 1,000PNB8.75%₹ 1,000Manappuram12.00%₹ 1,000Muthoot11.99%₹ 1,5001 more row

What documents are required for gold loan?

Document TypeIdentity Proof. Aadhar Card. PAN Card. Valid Driving License, Valid Passport. Voter’s ID Card. Job Card issued by NREGA.Address Proof. Aadhar Card. Driving License. Valid Passport. Voter’s ID Card. Job Card issued by NREGA.

How much gold loan can I get per gram in HDFC?

HDFC Gold Loan Key FeaturesLoan AmountUp to Rs. 1 Crore (With Income Proof)HDFC Gold Loan Interest Rate9.90% per annumHDFC Gold Loan Per GramLoan Per Gram Today is ₹ 4,680Processing Fee1.50% of the Principal Loan AmountPrepayment Charges2%+GST (Within 3 Months), 0 (After 3 months)2 more rows•Dec 1, 2020

Which type of loan is best?

Most personal loans are unsecured with fixed payments. But there are other types of personal loans, including secured and variable-rate loans. The type of loan that works best for you depends on factors including your credit score and how much time you need to repay the loan.

What are the 4 types of loans?

There are 4 main types of personal loans available, each of which has their own pros and cons.Unsecured Personal Loans. Unsecured personal loans are offered without any collateral. … Secured Personal Loans. Secured personal loans are backed by collateral. … Fixed-Rate Loans. … Variable-Rate Loans.

Is Gold Loan better than home loan?

A home loan top up interest rate is cheaper than a gold or personal loan. This is because a top up loan interest rate is only 0.5% to 1% higher than home loan interest rates. At this moment, a home loan interest rate is as low as 8.3%-8.4%. This means home loan top up interest rate would be 8.8%-9.4%.

How is gold loan calculated?

✅How is gold loan interest calculated? You can calculate the gold loan interest by subtracting the principal amount from the total amount to be paid. The total amount you would pay by the end of tenure can be calculated with the help of an EMI calculator.

Is Gold Loan good to take?

The interest rates for gold loans vary from lender to lender. They are slightly lower than personal loans and range between 9-29%. The repayment terms are different for different banks. … You can also avail the gold loan as an overdraft and use it as per your requirement, just as you would a credit card.

Is it advisable for personal loan?

Personal loans can be a viable option in a variety of circumstances. … Similarly, with an auto loan, the car you buy is the collateral. Because a personal loan often has no collateral—it is “unsecured”—the interest rate will probably be higher. There are also secured personal loans, if you want to lower your costs.

How does a gold loan work?

Gold Loan – How it Works For a Gold Loan, the bank takes your gold as collateral for the period of the loan. Banks charge an interest rate, and once you repay the entire loan, the bank returns your jewellery.