Gold Loan Interest Rates 20204375 views
The financial emergency can come anytime without any prior warning. To tackle such emergencies, you often need a pool of funds. You can always take a personal loan from any of the lenders in our country. But have you ever thought of using the idle gold sitting in your home or the bank’s locker? Do you know that you can get an SBI Gold Loan at an interest rate lower than a personal loan? Yes, with the help of it, you can get a pool of funds by pledging your gold.
Gold Loan is a kind of secured loan where you get the loan amount against the gold ornaments and even the gold coins sold by banks. Being the largest lender of our country, SBI provides an impeccable gold loan facility. You can get over any financial emergency with this loan from SBI. So, if you are looking to get some quick funds, an SBI gold loan could be the most preferred option for you. Keep reading to know more about it!
Table of Contents
- 1 What are the Different Schemes of SBI Gold Loan?
- 2 SBI Gold Loan Interest Rate January 2021
- 3 What is the Process to Apply for SBI Gold Loan?
- 4 SBI Gold Loan Eligibility Criteria
- 5 What are the Documents that you Will Require?
- 6 How Can You Repay the Gold Loan?
- 7 How Much Loan Amount Can You Get?
- 8 How to use the Gold Loan Eligibility Calculator?
- 9 How to calculate your EMI with Gold Loan EMI Calculator?
- 10 How can you check your SBI Gold Loan Statement?
What are the Different Schemes of SBI Gold Loan?
There are mainly three types of gold loan schemes from which you can choose. These are Gold Loan, Liquid Gold Loan and Bullet Repayment Gold Loan. You can have a glance at all of them below.
SBI Gold Loan
This is the first scheme by SBI to get the funds against your gold ornaments. In this scheme, you can get a loan amount upto 75% of the value of the gold submitted by you. For example, if the overall value of your gold is INR 10 lakh, you can get a loan amount upto INR 7.5 lakh. The remaining 25% is known as the margin. You will have to choose from a repayment period that can be a maximum of 36 months. The repayment will begin from the exact month of the disbursal.
SBI Liquid Gold Loan
With this SBI gold loan scheme, you will have the definite loan amount in your account based on the value of the gold pledged by you. The best thing about this is that you will have to pay the interest only on that amount which you need. Suppose you need only 2 lakh from the overdraft amount of 5 lakh decided by the bank. In such a case, you will have to pay the monthly interest on that amount only. The processing fee will be levied at 0.50% of the total loan amount plus applicable GST or INR 500, whichever is higher.
SBI Bullet Repayment Gold Loan
This scheme is perfect for those who want to prepay the full loan amount before the tenure as the interest rate will be charged for that period only. The maximum tenure that you can choose is fixed at 12 months unlike the 36 months on the other two schemes. For example, you decide to take the bullet repayment gold loan amount of INR 8 lakhs for a period of 1 year, and after 4 months, you want to repay the full loan amount. In that case, the interest rate will be charged only for a period of 4 months.
Understand this with an example. Suppose that you have taken the loan amount of ₹50,000 for 1 year and you want to pay the full loan amount after 6 months. Then, the interest amount will be charged only for those 6 months at an interest rate of 9.15% per annum.
SBI Gold Loan Interest Rate January 2021
While taking any kind of loan, the most important thing is the interest rate at which a lender is offering the amount. And SBI offers the lowest gold loan interest rate among all the lenders, which is one of the significant factors of this facility. With a lower interest rate, you will have a lot less pressure on your pocket while repaying.
In the table below, you can have a look at the offered interest rate and other important details related to all types of SBI Gold Loan.
|Details||SBI Gold Loan||SBI Bullet Repayment Gold Loan||SBI Liquid Gold Loan|
|Minimum Loan Amount||₹ 20,000||₹ 20,000||₹ 20,000|
|Maximum Loan Amount||₹ 20 lakh||₹ 20 lakh||₹ 20 lakh|
|Tenure||Maximum of 36 Months||Maximum of 12 Months||Maximum of 36 Months|
|Processing Fee||0.50% of the Loan Amount + Applicable GST or ₹500 plus GST whichever is higher||0.50% of the Loan Amount + Applicable GST or ₹500 plus GST whichever is higher||0.50% of the Loan Amount + Applicable GST or ₹500 plus GST whichever is higher|
What is the Process to Apply for SBI Gold Loan?
Now you have known enough about the SBI Gold Loan, you must want to know about the process to apply for it. Well, like any other loan in our country, this can also be applied online as well as offline. Though offline is a traditional way to apply for it, due to concern about their gold a lot of people often apply through the offline method. Don’t worry we will tell you about both ways.
In the current age of smartphones, you don’t need to go anywhere except the official website of SBI. You will see an online application form over there to apply for a gold loan. You will need a few basic details such as your name, mobile number, email id, and the residing city. As soon as you will hit the submit button, your application will get processed to the next stage.
The SBI representatives will get back to you. After having a word with you over the call, they will come to collect necessary documents as well as gold instruments from your office or residence. After verifying the quantity and quality of the gold and other personal details, the bank will approve the loan.
In case you don’t want to apply online and rather go the traditional way, you can do it through the offline way too. Just walk to your nearest SBI Branch. Fill the gold loan application form and submit it with your gold against which you want the loan amount. Bank will assess your application and other details, once verified successfully, does it approve your loan.
How to Apply for SBI Gold Loan using YONO App?
In the age of digitalization, people want to do everything from their smartphones. That’s why SBI has introduced the YONO (You Only Need One) Application. But do you know that you can also apply for an SBI Gold Loan using YONO App? Well, SBI allows its customers to use the YONO app for a hassle-free loan application process. This application is available for both Android and iPhone users and they can download from App Stores. The best thing about Yono App is that Customers don’t need to pay any processing fee on applying for an SBI Gold Loan through YONO.
A customer only needs to follow a few simple steps to apply for an SBI Gold Loan using YONO App. So what are these steps? All of them are as follows. Do check!
Step 1: The first step is to log in to the YONO app with your Username and Password. After logging in to the app, you will see the section of ‘Loans’ on the Left Side Menu.
Step 2: You will see several loan options where ‘Gold Loan’ would also be on the list. On clicking ‘Gold Loan’, you will see the ‘Apply Now’ option. Click on this option to apply for SBI Gold Loan using YONO App.
Step 3: In the next section, you will see ‘Personal Details’ such as Name, Date of Birth, PAN, Mobile Number, Email ID, and address. Click on the ‘Confirm’ button.
Step 4: After confirming the personal details, enter the Gold Ornament Details against which you want the Gold Loan – Type, Quantity, Carat and Net Weight. The weight of non-gold materials will not be included.
Step 5: After filling these details, you will see the Available Gold Loan Schemes, Eligible Gold Loan Amount, Rate of Interest and Tenure. You can choose the suitable loan scheme for yourself. Also, you can reduce the loan amount and tenure according to your requirements.
For example, if your eligible loan amount is INR 50,000 for a 36-month tenure, you can reduce it to the desired loan amount and tenure. Choose the option and click on the ‘Next’ button.
Step 6: In this step, you will need to fill in a few additional details such as your Loan Purpose, Educational Qualification, Residential Type, Marital Status, Net Monthly Income and Existing Obligations (any other EMI Details). After filling these details, you will also need to select the Account in which you want to get the loan amount (if there are multiple accounts). Since you are applying for an SBI Gold Loan using YONO App, you don’t need to pay any processing fee.
Step 7: In this step, you will need to select a branch of your choice to deposit your Gold for further processing. You will see the nearby YONO Gold Point Branches from which you can choose.
Step 8: After choosing the desired option, you will get to see the ‘Loan Summary’ that you will need to review and verify. The summary will include Ornament Type, Quantity, Carat, Net Weight, Loan Amount, Selected Scheme, Tenure, EMI, and Gold Loan Interest Rate. If you feel anything needs to be corrected, click on the ‘Back’ button to rectify or Click on the ‘Submit’ button.
As soon as you submit the details, you will get the Application Reference Number that will be valid for 15 days only. After this, you will need to visit the selected YONO Gold Point with your ID Proof, Address Proof, and Recent Passport Size Photographs. The bank will disburse the Gold Loan Amount after the evaluation of your ornaments.
SBI Gold Loan Eligibility Criteria
Before applying for the SBI Gold Loan, you must know the eligibility criteria you need to meet. Otherwise, your application may get rejected. So, if you want to save yourself from the rejection, you can read below the points and see whether you meet such conditions.
- Your age must be above 18 years to get a gold loan from SBI
- The loan can be taken by any individual as a single applicant or with any other co-applicant.
- You must have a steady source of income though you don’t need to show any proof of income.
- You must have the receipt of the gold against which you want the loan amount.
What are the Documents that you Will Require?
There are a few documents that you will have to submit when you apply for the loan and at the time of loan disbursement. Check out below a list of documents you need to submit.
Documents at the Time of Applying for Gold Loan:
- Duly signed Gold Loan Application Form
- 2 Passport-sized photographs
- Proof of Identity – Aadhar Card/ PAN Card/ Passport/Voter ID
- Address Proof – Driving Licence/ Electricity Bill/Telephone Bill
- Witness Letter in case of Illiterate Borrowers
Documents at the time of Loan Disbursement:
- DP Note
- Delivery Letter of DP Note
- Note Delivery Letter for your Gold Ornaments
- Arrangement Letter
How Can You Repay the Gold Loan?
Like any other SBI Loan, you can repay its gold loan too with the help of an easy EMI facility. The EMI amount will be a fixed amount that you will have to pay on a fixed date every month. This amount will be the sum of the principal amount and the interest amount charged on your loan amount. This amount will depend on the tenure you choose to go with. The tenure can be a maximum of 36 months as we told earlier.
The EMI will be initiated from the month following the month of your loan disbursement.
You can easily pay the EMI online with the help of the SBI Online Payment facility. At the time of loan disbursement, you will be given an account with your login ID and password. You just have to log in to your account and pay the EMI amount with any mode you like. You can also repay via cash, cheque or Demand Draft.
How Much Loan Amount Can You Get?
You must be thinking about this question: how much loan amount would you get? Well, the loan amount will depend on a few factors. Out of all factors, the most important one is the quality and quantity of the gold ornaments you are pledging. The bank will assess by checking the current market value of your ornaments and what is the weight of it. After this, your final loan amount will be decided.
Also, there is a margin of 25% in the SBI Gold Loan and SBI Liquid Gold Loan. It means that you could get a maximum of 75% of the gold value as the loan amount. For example, if your pledged gold value is INR 6 lakh, then you can get a maximum loan of INR 4.5 lakh, so you should keep this in mind too.
But if you decide to opt for the SBI Bullet Repayment Gold Loan, the margin stands at 35% which means that you will get a maximum of 65% of the total value of gold as the loan amount.
Besides this, your repayment capacity and the form of your pledged gold are also important factors to determine the maximum loan amount you could possibly get.
How to use the Gold Loan Eligibility Calculator?
You can also use the Gold Loan Eligibility calculator to know the maximum loan amount you can get. For using this, you just have to fill a few details into the calculator. The details are as follows.
- Number of Gold Ornaments
- Type of Ornaments – Necklace/ Solid Bangles/ Chain/ Ring/ Gold Coins/ Others
- Net Weight of Ornaments (in gms)
- Caratage of Ornament
As soon as you will feed all these details into the calculator, you will get two values – The total value of your Ornaments and the Eligible Loan amount you can get based on the former. You can use the calculator as many times as you want by putting different values in it.
How to calculate your EMI with Gold Loan EMI Calculator?
As you know by now, you will have to pay your SBI Gold Loan with the EMI facility. And, it is important to know the EMI amount beforehand so that you can manage your monthly finances accordingly. You will be paying this EMI amount from your monthly income only, and without any prior preparation for it, you could miss the payment.
But you don’t need to worry, as you can get an estimate of your EMI amount with the help of Gold Loan EMI Calculator. To use this calculator, you will just need a few details such as required loan amount, tenure, and the rate of interest offered by the lender. We have already told you about the tenure that can be a maximum of 36 months and the SBI gold loan interest rate is fixed at 9.15% per annum. So, fill the required details in the calculator, and it will give you the exact EMI amount within a second.
When you have a definite EMI in your sight, you can schedule all other monthly expenses accordingly.
How can you check your SBI Gold Loan Statement?
If at any point in your loan tenure, you want to check anything related to your gold loan then, you can easily get access to your loan statement by logging in to your account. Your SBI Gold Loan statement will have all the details related to your loan, such as the outstanding balance, due payment date, credit and debit of amounts, etc. So, if you want to have any information about your gold loan, you can download the statement from the SBI official website.
The statement will help you in getting a clear picture of your current gold loan situation. Also if in case of any discrepancies in your statement regarding any aspect of your SBI Gold Loan, you can contact the bank and ask them to rectify those mistakes.