Andhra Bank offers Loan Against Gold to the people who are engaged in Agricultural as well as non-agricultural activities. It is an attractive loan option through which every person whether he is jobless or with bad credit may acquire money through Andhra Bank Gold Loan. It is a loan that can be used to achieve instant money with 75% of the gold value. Andhra Bank has different Gold Loan schemes one of them is "AB Swarna Loan Scheme" especially for Non-Agricultural Gold Loan (NAGL) segment under which they will provide following facilities to the borrowers who required short-term loans:
Rate of interest @ 12.90% p.a. fixed, if the loan is repaid within 6 months from the date of disbursement.
If the loan is not closed with interest within a period of 6 months, the borrower will, however, have an option to continue the loan up to 1 year with a normal rate of interest i.e., @ 14.75% fixed from the date of disbursement.
Loans to be granted maintaining margin as per extant guidelines against the security of gold jewelry and gold coins.
Why Andhra Bank Gold Loan?
- Loan quantum of Rs 50,000 lakhs is available.
- Repayment: Maximum of 60 EMI’s are required.
- Third Party is acceptable to the bank.
- Instant availability on the same day.
- Enjoy fewer hassles.
- No pre-closure charges are involved.
- No credit history is required.
- 50 % of margin is available.
22 carat Gold
21 Carat Gold
20 Carat Gold
19 Carat Gold
Features of Gold Loan
- Following are the Features of Gold Loan:
- You can avail Loan from Rs. 10,000/- to Rs. 20 lacs or more & up to 75% of value for any purpose
- You get 100% Safety & Security of your Gold Jewelry.
- Get your Loan processed in less than 30 minutes
- Enjoy Anytime Liquidity.
- No EMI, Service only Interest and enjoy the Loan facility
- Lower Interest Rates
- Simple documentation and fast processing.
- Overdraft limit varies depending on the market rate of gold.
- An interest rate is payable the only amount of the overdraft that you use.
Agricultural Short term Gold loans
For individual borrowers
BR + 1.75% = 12.00% p.a.
For Corporate & Non-Corporate borrowers
Andhra Bank Gold Loan Base Rate @ 10.25% p.a. The minimum rate of interest available is 11.40%.
Advantages of Taking a Gold Loan
- Following are the Advantages of a Gold Loan:
- 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 low-income level.
- 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.
- 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.
- 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.
- 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.
Know More - 4 Different Ways of Repaying Your Gold Loan
Documents Required for Gold Loan
Proof of Identity
Aadhaar Card/Recent Passport Copy/ Voters ID card/ Driving License/PAN Card.
Aadhaar Card/Ration card/ Telephone and Electricity Bills of last three months with the name of applicant/ Rental bill/ Passport copy/Trade license /Shop & Est. License/Sales Tax certificate/Recent Driving Licence.
Passport Copy/Driving License/Banker's verification/cheque.
2 passport sized colored photographs.
Andhra Bank Gold Loan Procedure
- Apply Online on any Financial Portal www.dialabank.com.
- If you are eligible you will get the loan approval.
- Now you have to get your documents and gold to the bank.
- They will evaluate the value of your gold in terms of purity and weight.
- If your gold found to be genuine, you can avail the loan amount within 30 minutes.
- You will get 100 % safety of your gold. Your gold will be kept in a tight security.
* For any assistance regarding Gold Loan, call us on 60011600, our trained Relationship Managers will solve all your queries.
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FAQs About Gold Loan
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.
Gold Loan is 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.
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.
To get a gold loan do I need a co-applicant?
No, to avail Gold Loan you don’t need any co-applicant
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.
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.
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.
Know More - Gold Loan Interest Rate
Gold Loan Interest Rate of Different Banks - Updated on 2019
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