Allahabad bank was founded by a group of Europeans in the city of Allahabad. Allahabad Bank has come up with its product Allahabad Bank Gold Loan to help consumers like farmers, Agriculturists and existing clients in their bad time. It is an attractive loan deal whose eligibility norms are easy to achieve. One can put his gold as collateral to the bank and can earn about 70 % of the loan amount with ease.

Know More - Gold Loan Interest Rate

Why Allahabad Bank Gold Loan?

  1. Minimum of Rs 50,000 and Maximum of Rs 5 lakhs loan amount can be borrowed.
  2. Flexible repayment options: Hassle-free repayment option with EMI’s.
  3. Instant cash availability: Grab necessary amount of cash whenever needed.
  4. A person can also apply for Gold Finance on Agricultural Land on his name and get a discount of 1% on the interest rate charged.
  5. Full Safety of his Gold asset.

Read More - About Gold Loan

Gold Value Rate Available
22 Carat Gold Rs 1100
20 to 21 Carat Gold Rs 850
18 to 19 Carat Gold Rs 750

 

Features of Allahabad Bank Gold Loan :

  1. You can avail Loan up to Rs.1 Crore or more & up to 70% of value for any purpose
  2. You get 100% Safety & Security of your Gold Jewellery
  3. Get your Loan processed in less than 30 minutes
  4. Enjoy Anytime Liquidity.
  5. No EMI, Service only Interest and enjoy the Loan facility
  6. Lower Interest Rates
  7. Simple documentation and fast processing.
  8. Overdraft limit varies depending on the market rate of gold.
  9. The interest rate is payable the only amount of the overdraft that you use.

Know More - Gold Loan: Factors to Remember

Advantages of Taking Allahabad Bank Gold Loan

  1. No income and salary criteria- Gold loans do not require any documentation or validation of income or salary of the person. So even if you are unemployed and unsalaried you can still avail a gold loan. This is because you are pledging a valuable asset i.e. gold in return for the money. Can be provided in cases of bad credit history as well as a low-income level
  2. Relatively Lower interest rates- Another advantage of taking a gold loan is that they are available at low interest rates, say 12-16% annually in comparison to the personal loans interest rates of 15-26% per annum.
  3. You need to repay only the interest- You have the option to pay only the interest during the tenure of the entire gold loan and at the end of tenure, you can pay the entire borrowed amount in a single shot.
  4. Total Convenience- The most convenient of all the loans is a gold loan. This is because in this all you have to do is pledge your gold with a bank or a private finance institute and the work is done. You can get a loan up to 80% or more of its market value immediately.
  5. Less processing time- No tedious and lengthy documentation is required in case of gold loans, hence it can be resorted to in times of urgent needs. Banks take a few hours in the processing of the gold loan whereas some NBFC’s state that they only take a few minutes for the same task.

Allahabad bank gold loan interest rate 2019 - 10.75% Per Annum

Documents Required for Allahabad Bank Gold Loan

  1. Residence Proof: Ration Card/ Electricity Bill of last three months with the name of the applicant/ Telephone Bill of last three months with the name of applicant / Passport Copy/ration card.
  2. Identity Proof: Any one of the mentioned proofs is accepted Voters Card/Driving License/ Passport photocopy/Aadhar Card.
  3. 2 passport size photographs.
  4. Proof of ownership of Land.

Know More - Gold Loan From Top banks And NBFCs in India

Allahabad Bank Gold Loan Process:

  1. First of all a person will need to apply online.
  2. Next, a person will have to visit the bank to evaluate his gold asset to collect the cash.
  3. Bank will measure the value of a gold asset in the form of purity and weight.
  4. Finally, the loan gets sanctioned to the borrower after evaluating the genuineness of the Gold.

Forms of Gold

  1. The gold will be accepted in the form of coins but the coins should weigh less than 50 grams, besides that gold bars can also be accepted.
  2. Gold jewelry in any form is accepted.
  3. Gold is raw form is not accepted.
  4. The gold ornaments should be of 18 karats to 22 karats purity.

Know More - Gold Loan Per Gram

Category of Gold Loan

The gold loan comes in the category of secured loans. In the gold loan, a customer pledges his/her gold ornaments to the bank as a security and promises to return the loan amount on time. If the customer fails to repay the amount of loan to the bank on time then the bank sells the gold of the customers and recovers the amount of loan. The bank is completely liable to do so.

Is Gold Loan is better than a Personal Loan?

Yes, if someone has an option to choose in between the personal loan and the gold loan then he/she is advised to go for a gold loan. because in both cases he can fulfill his/her personal needs. So if the customer has enough gold too he/she should get a gold loan. The reason after that is the rates of interest on the gold loan are quite low as compared to other loans or a personal loan. because the personal loan is an unsecured loan, so the lender has a high risk while providing the loan amount to the customer. So the rates of interest are quite high in a personal loan.

Know More -  Gold Loan Features and Benefits

FAQs About Gold Loan 

1. How does Gold Loan work?
 Loan on gold is very simple to understand. The Banks /NBFC provides you with funds against your gold ornament. The amount depends upon the gold weight.

2. Is Gold Loan secured?
Yes, it is essential to note that the loan on gold comes in the category of secured loans. Because in a gold loan the applicant put their gold ornaments into the bank’s locker as security or as collateral.

3.What happens when you don’t repay a Gold Loan?
 If the borrower is unable to return the gold loan on time, then the bank is liable to sell his gold ornaments.

4.Do I need a co-applicant to get a gold loan?
 No, to avail Gold loan you don’t need any co-applicant 

5.Is Gold loan better than a Personal loan?
Yes, a Gold loan is better than personal Loan because in Gold Loan banks/NBFC's takes Gold ornament as well as a gold coin as collateral and in case of Personal loan it is un-secured and hence carries higher interest than a gold loan.

6.What is the best online platform to avail gold loan?
Dialabank is the best platform to get a loan. Dialabank provides you hassle-free process as well as the lowest interest rate in the market as compared to others.

7.Is there any fee payable for the Gold Loan?
Yes, you have to pay the loan processing fee (non-refundable) as well as Valuation fee.

8.Is gold loan a good option?
A gold loan is an excellent choice because:

  • Minimal Documentation
  • Disbursal in 30 minutes
  • Flexible Loan Tenure
  • Wide-ranging Repayment Options
  • Pre-payment option
  • Negligible Processing Fees

9.How can I avail a gold loan?
You can avail the service of a gold loan in a few clicks.

  • Fill in your expected details in the web-form on Dialabank.
  • Now all you have to do is, wait; our relationship managers will get back to you within 30 minutes.
  • We will suggest you the loan which meets your requirements, in your specific region.
  • Submit the required documents with our representative, who will be in touch with you.
  • Accept the loan amount in just 30 minutes.

10.Is Gold Loan better than a personal loan?
Yes, a gold loan is far better than a personal loan. Reasons being:

  •  A gold loan does not require a CIBIL score or any proof of your income.
  • Gold loans are less time-consuming and hustle free in comparison with Personal Loans. 
  • A gold loan is a secured loan and therefore, is the most opted loan nation-wide.Gold Loan Interest Rate of Different Banks - Updated on 2019

11.What is the benefit of gold loan?

Gold loans have various benefits, which are why it is the most opted loan in the country. Some of the benefits are listed below:

  • Proof of your income is not needed Loan
  • Disbursal in just 30 minutes
  • CIBIL score is not required
  • Less Documentation 
  • Maximum Funding
  • It is a Secure Loan
  • Instant  Approval
 

Bank 

Gold Loan Rate 
HDFC Bank 10.70%
Yes Bank  10.85%
Axis Bank 10.90%
SBI Gold Loan 11.50%
ICICI Bank 11.75%
IIFL Gold Loan 11.75%
Allahabad Bank Gold Loan 11.75%
Muthoot Gold Loan 12.00%
Federal Bank Gold Loan 12.00%
Manappuram Gold Loan  12.25%
IDBI Bank 12.25%
PNB Gold Loan 12.25%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* For any assistance regarding Gold Loan, call us on 95920-46860, our trained Relationship Managers will solve all your queries.