Features of Andhra Bank Gold Loan
Andhra Bank will give you a monetary value for your gold jewellery. It is a simple alternative for you, whether you are unemployed or have a poor credit rating; you can still meet your needs with the help of an Andhra Bank Gold Loan. It’s a loan that can be utilised to deal with any type of financial crisis. You will receive 75% of the market value of gold from the bank. Andhra Bank Gold Loan offers a variety of programmes, including the “AB Swarna Loan Scheme,” which is tailored to the Non-Agricultural Gold Loan (NAGL) market.
The following are some of the most important characteristics of gold loans:
- Quick Processing – Because gold loans are secured by genuine gold, banks and other lending organisations can easily approve them. Lending against gold is a safer choice for banks since they can quickly sell the gold if the borrower defaults. As a result, banks typically disburse such loans within a few hours. As a result, processing times are reduced, resulting in more convenience for borrowers.
- ‘Pay Interest Only’ Option – Gold loans frequently include a unique feature that allows the borrower to pay only the interest portion of the loan while repaying it. The primary component might be paid at the end of the loan term or during the loan closing process.
- Comparatively Lower Interest Rate – Banks charge a lower interest rate on gold loans since they are secured loans, as opposed to unsecured loans like personal loans. Gold loans include interest rates ranging from 13 to 14 per cent. Personal loan interest rates, on the other hand, are often around 15%. The bank lowers the interest rates on gold loans for applicants who can supply additional collateral.
- Zero Processing Fees – Because gold loans are granted promptly with gold as collateral held by the bank, many banks and NBFCs do not charge any processing costs.
- Minimal Foreclosure Charges – On gold loans, some banks and lenders don’t issue prepayment penalties or charge them at a low rate of 1%.
- No-income Proof to be Furnished – Because the loan is secured against the gold pledged by the borrower, most gold loan applications do not ask for proof of income.
- No Impact of Poor Credit History – In most cases, the bank determines the loan amount based on the borrower’s repayment capabilities and credit history. This is not the case with gold loans, though. Because gold is used as collateral, lenders are confident in the repayment of the principal component and do not base their decision on the borrower’s credit history.
- Security of Physical Gold – The responsibility of safely maintaining the physical gold is that of the lender. It is normally kept safe in the bank’s vault and therefore, borrowers don’t have to worry about the same. Once they repay the loan, the gold is returned by the bank.
Andhra Bank Gold Loan Comparision with banks
|Bank / NBFC||Rate Per Gram||Interest Rate||Gold Loan Tenure||Min – Max Loan Amount|
|₹ 3,506 to ₹ 4,621||0.099||3 to 24 months||₹ 10 thousand to 5 crore|
|Private Gold Loan||₹ 3,506 to ₹ 4,621||0.1||6 to 12 months||₹ 10 thousand to 5 crore|
|₹ 3,506 to ₹ 4,621||0.12||7 days to 36 months||₹ 3 thousand to 1 crore|
|₹ 3,506 to ₹ 4,621||0.1225||12 months||₹ 3 thousand to 1 crore|
|₹ 3,506 to ₹ 4,621||0.1025||36 months||₹ 20 thousand to 50 lakh|
|₹ 3,506 to ₹ 4,621||0.1||3 to 36 months||₹ 10 thousand to 5 crore|
|SBI Gold Loan||₹ 3,506 to ₹ 4,621||0.0975||12 to 36 months||₹ 20 thousand to 50 lakh|
|₹ 3,506 to ₹ 4,621||0.075||3 to 36 months||₹ 20 thousand to 50 lakh|
|₹ 3,506 to ₹ 4,621||0.1025||12 months||₹ 20 thousand to 50 lakh|
|₹ 3,506 to ₹ 4,621||0.1025||12 months||₹ 10 thousand to 5 crore|
|IIFL Gold Loan||₹ 3,506 to ₹ 4,621||0.12||11 months||₹ 3 thousand to 50 lakh|
Andhra Bank Gold Loan EMI calculator
The gold loan calculator can help you figure out how much you’ll have to pay in monthly instalments if you take out a gold loan. An EMI is determined based on the amount of your loan and the loan’s term, as well as the interest rates charged. The following are the important areas that a Gold loan calculator considers:
- The bigger the loan amount, the higher the EMI.
- The EMI amount increases as the interest rate rises.
- The smaller the EMI payment, the longer the loan term.
Andhra Bank Gold Loan Documents Required
At the time of application the following documents are required:
- Proof of the citizenship of India
- Duly filled application form
- 2 passport-sized photographs
- Applicant’s KYC documents to establish Identity and Address
- Salary/ Income Proof
- Witness Letter in case of illiterate borrowers
- In the case of Agriculture Loan of more than Rs. 1 lac, land proof
- Certificate by the Jewel Appraiser (Bank will arrange)
At the time of disbursement the following documents are required:
- Demand Promissory Note & Demand Promissory Note Take Delivery Letter
- Gold Ornaments Take Delivery Letter
- Arrangement Letter
Andhra Bank Gold Loan Documents Required – FAQs
✅ What are the advantages of a gold loan?
The following are some of the primary advantages of taking out a gold loan:
- Interest rates are reasonable and processing fees are low.
- There is very little documentation.
- Charges for loan foreclosure are minimal or non-existent.
- Repayment terms that are flexible.
- LTV ratio is high.
- Various options for loan payback.
✅ Is taking a gold loan safe?
Gold loans are regarded as a secure investment. Physical gold may not be worth much or at all, but borrowers can utilise gold loans to cover a variety of expenses.
✅ Which bank is best for a loan against gold?
SBI is noted for having a low gold loan interest rate of 7.50 per cent for a maximum loan period of 36 months.