Top 5 Questions to Ask before applying for Gold Loans in India

Ruloans knows how important Gold is to the common crowd in India. It is considered to be auspicious in many cultures. Gold has been considered as an investment by parents for the future of their children to be used in dire situations or even during their marriage.

Keeping the security of their precious gold and offering the best solutions in mind, Banks and NBFCs in India came up with a solution in the name of “Gold loans”. Ruloans wants people to understand what gold loans are and how they operate. Hence with the below 5 questions we aim to educate the end customer make the right choice at the right time.

What are gold loans?

Gold loans are loans given by Banks, NBFCs and other financial institutions. In order to get the loan amount, you must keep your gold as collateral with the Bank. Until the loan tenure ends, your gold will be with the Bank/NBFC. Once you repay all the monthly EMI’s, you get your gold back.

How do gold loans work in India?

How gold loan works is in a very simplified manner. There are set procedures along with rules and regulations under which these loans must operate. The safety of the gold is of the highest order.

What is the benefit of gold loan?

Gold loans have 3 basic benefits;

Safety of your Gold is very high. If you keep gold in your house, there is more chance of theft to take place when you compare it with the safety vault in Banks and NBFCs.

The interest rate in gold loans is very low clearly because of the collateral involved i.e. your precious Gold.

What is gold loan interest rate in India?

The gold loan interest rate is lower than most of the popular loan products. Most of the credit must go to the fact that this is a secured loan hence the lowest interest rates are offered on gold loans. The data below has approximate figures. Banks and NBFCs like HDFC, Canara bank, Indian bank, Axis bank, SBI, ICICI, PNB and many more banks offer more or less the interest rates on Gold loans which are around these figures.

Loan Provider Interest Rate Processing fee
HDFC Bank 10.50% – 15.00% 0.50% -2%
Axis Bank 14.75% – 17.25% 1%
ICICI Bank 10.50% onwards 1%
IIFL 12.00% onwards Nil
Manappuram 12.00% – 29.00% Varies case by case
Muthoot 12.00% onwards 0.25% to 1%
PNB 10.05% onwards 0.70% + taxes
SBI 11.05% onwards 0.50%
YES Bank 10.50% onwards 0.50% – 2%

What is the procedure to get gold loan?

Ruloans provides the best loan based services to customers free of cost. When you apply for a gold loan through us, you can be assured of getting the best interest rates available in the market. You can do this by just logging on to our website and applying for a gold loan. By filling in your requirement and uploading your documents, we shall help you complete your form and get it submitted to the best Banks and NBFCs.

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