Product Details
Name of Bank
Bank of Baroda
Maximum Loan Amount
Rs. 50 lakhs
per customer
Interest Rate
9.15%
Loan to Value Ratio
75%
Maximum Loan Tenure
Tenure: 12 Months
and Max. 36 months
for EMI scheme.
Retail Gold Loan
Fees and Charges
Processing fee :- Up to Rs 3.00 lakhs- NIL
Above Rs 3.00 lakhs up to Rs 50.00 lakhs- Applicable charges +GST
Prepayment Penalty: NIL
Late Payment Penalty: 2% of the overdue amount or Rs. 100, whichever is higher.
Penal Interest: 9% p.a.
Legal And Other Charges: not available.
Minimum CIBIL Score
Pricing not linked to CIBIL score.
Eligibility
All individuals being true owner of the gold ornaments/jewellery & specially minted Gold coins sold by the Banks (Maximum up to 50 gm per borrower). The applicant must be Indian resident.
Fees and Eligibility
Concession and Features
Special Concession
N/A
Special Features
No processing charges up to Rs. 3 lakhs
Pros
Guarantor is not required in Gold Loans. Easily convertible into cash. Income proof not required. Security of your Gold Ornaments /Jewellery/Coins. Pricing not linked to CIBIL score. Minimal Paperwork and faster processing. No processing charges up to Rs. 3 lakhs No pre-closure, or prepayment charges on gold loans Repayment: Borrowers can make monthly/ quarterly/semi-annual loan payments, or choose to make a bullet payment, based on their repayment capacity Gold loan is provided against a minimum of 18-carat gold jewellery/ornaments
Cons
No Loan will be granted to third party. Risk of foreclosure: If you are unable to repay the loan, the bank may foreclose on your gold and sell it to recover the loan amount.
Pros & Cons
How to Open?
Online Visit the Bank of Baroda website and click on the "Personal Banking" tab. Under the "Loans" section, click on "Gold Loan". Click on the "Apply Now" button. Fill in the online application form and submit it. A bank representative will contact you to complete the process.
Documents Required
You should have your bank account KYC complied, i.e., proof of residence, passport size photographs, proof of signature and proof of identity.
Account Opening and Procedure
Indian Bank
Indian Bank Jewel loan provides two loan schemes
1. Bullet Repayment
2. Monthly Repayment
The interest rate varies from 8.65% to 9.00% which is moderate as compared to different banks offering gold loans. However, the LTV Ratio is low i.e., only 65-70%, the other banks in the market offer higher LTV Ratio on the gold loans. Therefore, before applying for such loan check the terms and conditions properly and compare different banks offering gold loans.
Abhijeet Saxena
Abhijeet Saxena
Nalsar University of Law
Ex- Senior Associate, Shardul Amarchand Mangaldas, Delhi
Ex - Khaitan & Co. Bengaluru,
Ex - National Stock Exchange, Mumbai,
Ex - Argus Partners, Mumbai