What are gold loans?
What are gold loans?
Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold.
Is it good to take loan on gold?
Whether there is a medical emergency, business expansion or any other financial liabilities, gold can be utilised to get loan against it. Gold loan is one of the best loan options today. Why? Well, primarily because it is easy to acquire.
How can I get gold loan from Bank?
The idea of a gold loan is simple; you pledge your gold articles and get the loan amount in lieu. To do so, you visit a lending institution with the gold you want to pledge and the required documents. The lender performs gold purity checks and determines its weight on the basis of which it evaluates its market value.
What is gold loan in SBI?
State Bank of India (SBI) is one of the largest banks among the public sector banks in India. The bank offers SBI gold loan scheme to provide loan against gold jewellery which can be used for several requirements such as marriage, business expansion, education of the child, building a property, etc.
Is SBI gold loan Safe?
Security – Gold items provided as security are returned on repayment of loan. Fast approval – This loan is easy to avail, with quick approval and minimal documentation. Low processing fee – SBI charges a processing fee of 0.25% of the loan amount.
Which is better, gold loan or personal loan?
Gold loan Is cheaper than personal Loan because financial institution is taking Gold as collateral. Personal loan is un-secured and hence carries higher interest.
What are the advantages of taking a loan against Gold?
Some of the advantages of taking a loan against gold include lower interest rates, flexible repayment options, minimal documentation. Let’s check out these advantages in detail. Lower Interest Rates. One of the key advantages of taking a loan against gold is the affordable interest rates you get on the same.
What is the definition of “gold loan”?
The gold loan, also referred as a loan against gold, is a secured loan that a borrower takes from a lender in lieu of gold ornaments such as gold jewelry. The loan amount sanctioned to you by lenders is generally a certain percentage of the gold’s value.
How to calculate gold loan interest?
You can calculate gold loan interest in excel using the following formula; =PMT(RATE, NPER, PV) where RATE refers to the rate of interest which is applicable to the loan amount, NPET refers to the total number of monthly instalments you need to pay or the loan tenure period, and PV stands for the principal loan amount.
