Process of Gold Loan Rate of Interest
The gold loan is the perfect way to get the instant hot cash. You can get cash instantly, but you have to follow some instructions to get more convenience. You have to pay the interest and the principle amount within the estimated time. If you missed to pay it, your gold will be sent for auction after a certain time limit.
Gold Loan Interest Rates bank wise Interest rate
Many banks give the gold loans for different interest rates according to their terms and conditions. You have to read and understand the terms and conditions of that particular financial institution or lender. The interest rate will range from 11.5 to 25 percent.
SBI offering 11.25 per annum.
Have to know before applying gold loan procedure.
When you choose for the gold loan, make sure you are confident to return the money within a time period. Else, you need to pay penalties or your gold may come under the financial institutions and it may go for sale. Before applying for gold loan, you need to know the entire information about interest rate, terms, payback period, penalty and more about the bank or financial institutions. Check and make a comparison of interest rates of different banks. To apply for a gold loan follow the steps
- You need the proof like ration card, telephone bill, voter ID, passport or driving license.
- For the signature proof, you can submit your documents with your signature with two Passport-size photos.
- When you go for the gold loan, there are some additional charges you may need to pay. You may need to pay processing charges in some banks.
- The valuation charges are actually paid by the service provider.
- If you failed to pay the repayment or interest amount, the service providers charge the late penalty.
Advantages of gold loan
- They don’t demand your salary or income certificate. They didn’t ask for the history of the credit card. Even unemployed people can also go for the gold loan.
- Unlike the other loan process, it doesn’t need more documents. You can easily apply for the loan with the fewer documents like address proof and Id proof.
- The gold loan interest rates are very low when compared to the other loans. Normally, the interest rate on the gold loan is of 12 to 16 percent.
- It is the most convenient and the simple process. You can get the loan amount up to the 80 percent of the value of gold in the market.
- The processing time for the gold loan is very less. Usually, banks complete the processes in few hours. And in private financial companies, they take few minutes to complete it.