Gold is a precious metal and is of great value in a country like India. It is a bright, slightly reddish yellow, dense, soft, and ductile metal. You can use your Gold as a savior.Gold Loan is the best option to procure the required amount of funds within minutes. A person who is not eligible for other loans due to his bad credit history and want money immediately can go for this loan option.
Interest rate of Gold Loan in Vellore
some part of the amount of a loan that is charged as interest to the borrower, which is expressed as an annual percentage of the loan outstanding is said to be the interest rate. The gold loan is provided at the best interest rate as compared to unsecured loans.
- The gold loan is available at 1% per month interest rate.
- Gold loan interest rate - 10.70 %PA.
- offer a low processing fee that is 0.85%.
- Pre-closer charges range from 0 – 2 %.
Read More: Gold Loan Interest Rate
Eligibility Criteria to Apply for Gold Loan in Vellore
The lenders have provided a criterion with respect to the ability of the customer to qualify for the scheme of Gold loan.
- A person should have a minimum of 10-Gram gold to avail the Loan.
- No penalties are involved.
- In house gold evaluation.
- Available within a time period of 30-60 Mins.
- You can enjoy a maximum tenure period of 6 to 12 Months.
- Proof of Identity: Passport Copy/ Voters ID card/ Driving License.
- Address Proof: Ration card/ Tel, Electricity Bill/ Rental bill/ Passport copy/Trade license /Shop & Est. License/Sales Tax certificate.
- Signature Proof: Passport Copy/Driving License/Banker's verification/cheque.
- 2 passport size photographs.
CIBIL Score Matters in Gold Loan?
No, the banks do not check the CIBIL Score of a person to approve a gold loan. Gold Loan is a secured service, hence, the bank is not concerned about the repayment history of a person. Because, even if the applicant fails to repay the loan, the banks can cover the loan amount through the gold ornaments that they have in their possession.
Read More: What is CIBIL Score?
Key Benefits of Gold Loan
- Faster processing:- Lending against gold is safe for banks as they have the option to sell the gold in case of bad debts or any default. Therefore, the banks disburse the loan in few hours.
- Option to pay interest only:- Under gold loan, the borrower have the opportunity to pay just the interest amount, and the principal amount can be paid at the time of closing the loan.
- Lower interest rate:- Being a secured loan, the bank charges a more economical interest rate as compared to unsecured loans. The interest rates are generally under the range of 13 to 14 percent.
- No processing fee:- Many banks or other lending companies don’t charge any processing fees as these loans are provided instantly against gold, which is held as collateral to the lender.
- Bad credit history is not an issue:- As gold is provided as collateral security, the lenders are not worried about the principal elements. Thu, there is no need to check or verify credit history.
- Safety of gold:- the security of loan lies with the lender. It will remain safe in his security. The gold will be returned after the repayment of the loan in the same shape.
How to Apply Oline
Applying for a gold loan is very easy; one only needs to have an internet connection and a laptop or mobile. Grab the opportunity and apply for the gold loan over the internet just by sitting at your home.
- First, visit the www.dialabank.com, and fill the online application form from there as it is a straightforward process of application.
- In the next step, the company representative will contact you and will confirm some details and will help you to get a good comparison of interest rates of other banks after they verify your eligibility.
- Then our company will fix your appointment with the banker. Once you need to visit the bank for the submission of gold and at last the bank will sanction the loan.
- At last, you will get your loan the lowest interest rate.
FAQs About Gold Loan
How does Gold Loan in 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.
Gold Loan Interest Rate of Different Banks - Updated on 2019
|Bank||Gold Loan Rate|
|SBI Gold Loan||11.50%|
|IIFL Gold Loan||11.75%|
|Muthoot Gold Loan||12.00%|
|Federal Bank Gold Loan||12.00%|
|Manappuram Gold Loan||12.25%|
|PNB Gold Loan||12.25%|
Know More About Gold Loan
- 3 Best Methods Repaying Gold Loan
- 4 Different Ways of Repaying Your Gold Loan
- What happens when you don’t pay a Gold Loan?
- Gold Loan From Top banks And NBFCs in India