Product Details
Name of Bank
RBL Bank
Maximum Loan Amount
INR 25 Lakhs
Interest Rate
7.11%
Loan to Value Ratio
75%
Maximum Loan Tenure
12 Months
Loan Against Gold
Ornaments
Fees and Charges
Loan Processing Charges Up to 1% of the loan amount, inclusive of applicable taxes.
Prepayment Interest - 2% of the outstanding amount, plus applicable taxes.
Late Payment Penalty: 2% of the outstanding amount, plus applicable taxes.
Penal Interest- 1% per month on the outstanding amount of the loan
Legal And Other Charges: Actual charges
Minimum CIBIL Score
Not Required
Eligibility
Loan Against Gold Ornaments can be availed by any Indian resident who owns gold jewellery. Minimum age of applicant to be 21 years and Maximum age of 60 years (or retirement age whichever is lower) for Salaried, 65 years for pensioners and 70 years for Self Employed.
Fees and Eligibility
Concession and Features
Special Concession
N/A
Special Features
None
Pros
Convenient loan tenure of 3 months to 12 months Higher loan to value for your gold in the market On the spot assessment and valuation of your gold in order to arrive at the loan amount eligibility followed by loan disbursal Rest assured regarding safe storage of your gold in our vaults Convenient repayment option in the form of monthly interest servicing and principal repayment at the end of the tenure Minimum documentation required
Cons
Risk of foreclosure. Storage fees is also levied upon the customers.
Pros & Cons
How to Open?
Visit the nearest RBL Bank branch. You can also apply for a gold loan online, but you will need to visit a branch to get your gold ornaments appraised and to sign the loan agreement.
Documents Required
Individual PAN Card Identity Proof - Any one (e.g. Voter ID/Driving License/Passport/Aadhar Card) Address Proof - Any one (e.g. Voter ID/Driving License/Passport/Telephone Bill/Electricity Bill/Registered Lease Deed or Sale Agreement/Bank Statement) Age Proof Signature Proof - Any one (Driving License/Photo Pan Card/Passport/Self-declaration) Passport Size Photographs of all applicants
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