Why Do People Take Gold Loans?

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

HDFC Gold Loan CalculatorEligibility CriteriaHDFC Gold LoanGold Loan per gramRs.

2,978 to Rs.

3,640 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan AmountRs.

50 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows•Jul 21, 2020.

How much gold loan can I get per gram?

Gold Loan Per Gram – SBI, Manappuram, HDFC, Axis, Yes BankGold Loan per gramRs. 2,915 to Rs. 3,563Eligible Age18 to 75 yearsLoan Amount EligibilityRs. 1,000 to Rs. 2 CrLoan as percent of gold valueUp to 75%Purity of gold18 carat to 22 carat2 more rows

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 best Gold Loan per gram22 carat48,5313,64020 carat44,1193,64018 carat39,7072,978Jul 22, 2020

Which bank is better for gold loan?

Check and Compare Gold Loan Interest Rates of Various Bank in IndiaBanksInterest RatesSBI Gold Loan7.75% – 8.50%Muthoot finance12.00% to 24.00% p.a.Manappuram14.00% – 26.00% p.aHDFC Bank9.90% – 15.95% p.a3 more rows

Is gold loan cheaper than personal loan?

Gold Loan Is Cheaper Than Personal Loan in India. Gold loan Is cheaper than personal Loan because financial institution is taking Gold as collateral. … The difference between the two is that in case of personal loan, you do not have to give any kind of collateral whereas a Gold loan is backed up by your Gold.

What happens if gold loan is not paid?

A gold loan is a secured form of credit, and therefore, any default in payment will lead to a fall in your credit score. … It also mentions that on failure of payment, the bank will sell the pledged ornaments in order to settle the loan. If the borrower still does not respond, the ornaments are evaluated by an appraiser.

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.

What is loan against gold?

Gold loan or loan against gold is a secured loan in which a customer pledges his/her gold ornaments as collateral with a gold loan company. The company, in turn, gives a loan amount as per the market value of gold to the customer.

What is the benefit of gold loan?

Lower interest rates The next benefit of gold loan is the interest factor. This kind of a personal loan offers lowered interest rates as they happen to be secured loans. On an average usual personal loans charge interest ranging anywhere between 15 per cent and 18 per cent.

Is Gold Loan good to take?

Whether there is a medical emergency, business expansion or any other financial liabilities, gold can be utilised to get loan against it. Gold loan is one of the best loan options today.

What is the disadvantage of gold?

The primary disadvantages of investing in gold are: Gold appears to have no yield. Large amounts of bullion may incur some storage fees. Gold ETFs may incur brokerage fees (like shares)

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

SBI Gold Loan CalculatorEligibility CriteriaSBI Gold LoanGold Loan per gramRs. 2,978 to Rs. 3,640 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan AmountRs. 20 LakhMaximum Loan to Gold Value RatioUp to 75%3 more rows•7 days ago

How does a gold loan work?

How does gold loan works? The entire process of gold loan is quite similar to other secured loans. In this, you take your gold articles to a lender along with the required set of documents. … As per the loan agreement, you pay off the principal amount along with the interest amount and get the pledged gold articles back.

Which type of loan is best?

Best for lower interest rates Secured personal loans often come with lower interest rates than unsecured personal loans. That’s because the lender may consider a secured loan to be less risky — there’s an asset backing up your loan.

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.