Baroda Gujarat Gramin Bank Eligibility Criteria
Gold lending is considered as the fastest emerging trend to get quick financial solution. But for easy gold loan approval, it is essential to verify your gold loan eligibility. It helps you to determine how much you need to pay each month as an IME to service your gold loan. To get a gold loan, your age limit must be from 18 to 70 years old. you can get a gold loan no matter what your profession, whether you are an employee, self-employed, entrepreneur, farmer or trader.
Each bank offers a gold loan up to Rs 20. The amount can be up to Rs 2 crore. The amount of gold that must be deposited for collateral must be worth between 18 and 24 karats. You must include proof of identity and proof of address. No proof of income is required to get a gold loan in India
Factors which lenders consider at the time of sanctioning a gold loan amount:
- Gross Weight: Gold weight as measured by the Gold scale. lender/ Baroda Gujarat Gramin Bank Considers gross weight.
- Net weight: The lender/Baroda Gujarat Gramin Bank considers the net weight obtained by reducing the stone weight from Gold.
- LTV: Per gram weight offered for your gold for loan purpose.
- Gold Loan purity: It determines your gold loan eligibility, better is your purity, more the gold loan
- Documents: KYC document as an identity proof and address proof is required
Detailed process to evaluate your Gold Loan Eligibility
Understand the per gram rate and LTV
Gold Rate: Before applying for gold, it is essential to check the gold value per gram, which should be the exchange rate of 22k gold in the market on the day you apply for the loan. ‘ Once you know the current gold price per gram, you can easily calculate the loan-to-value ratio.
LTV: LTV is the maximum loan amount granted to gold loan applicants based on the underlying value of the gold. The standard maximum LTV that can be used on gold in India is 75%, regulated by the Reserve Bank of India. It is better to look at higher LTV and lower interest rates to get the best compromise when lending gold.
Process to calculate the gold loan
The calculation of the gold lending rate per gram is done by multiplying the net weight of gold by the market rate per gram and the gold purity factor. Net self weight is calculated as the total weight of the jewelry minus the weight of any items other than gold, i.e. net weight on a diamond ring is the total weight of the ring minus the weight of the diamond. When this is calculated, the formula is as follows:
Gold Loan Amount = Net Weight x Per Gram Rate x Purity
Choose the right place for taking a gold loan
It is important to remember that the decision to borrow gold at the highest interest rate per gram is not limited to LTV offers nor is it based on the simple question of how a gold loan is calculated.
Ideally, in order to get the most profitable gold loan offer, in addition to the LTV, the duration of the gold loan, interest, prepayment or processing fees should also be taken into account.
Visit Dialabank to make your loan process easy.
Baroda Gujarat Gramin Bank Gold Loan Eligibility Calculator
|Minimum and Maximum Age||
21 Yrs – 60 Yrs
Note: However, many banks require a minimum age of 23 years
Up to ₹ 2 Cr. Some banks restrict maximum eligibility to ₹ 20 Lakh
Interest rates are lower for a higher loan amount
Salaried and self-employed both are eligible
Businessmen are increasingly taking gold loans to meet their working capital requirements.
In fact, housewives, senior citizens who are not eligible for other loans because they have no income proofs can easily avail of gold loans.
|Quality of Gold||
Gold ornaments should range in between 18 to 24 Carats
An average gold price of 22-carat gold for the preceding 30 days is adjusted down for purity. So, the price of 20 Carat jewellery can be estimated by multiplying the price of 22 Carat jewellery by a factor of 20/22
Banks do not check CIBIL score for granting a gold loan
However, your repayment track record for a gold loan is counted towards your CIBIL score and hence, can be instrumental in building your CIBIL score
|Gold ornaments that can be used for availing loan||
Gold bars and coins
Gold with 18-24 carat purity
|Employment track record and income proofs||
Banks do not check your job stability or business stability to sanction you a gold loan. Gold loans are granted without income proofs. You only need to submit your basic KYC documents such as address proof, identity proof, and an Aadhaar card to avail of this loan.
Baroda Gujarat Gramin Bank Gold Loan Calculator
Baroda Gujarat Gramin 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
Types of Baroda Gujarat Gramin Bank Gold loans
- Bullet Loan: You have to repay the entire amount of both the principal and interest amount at the end of the loan’s term.
- Interest only Loan: You can repay the interest amount as per the EMI schedule of the gold loan however the principal amount borrowed is to be paid, in full, at the time of maturity.
- Normal EMI Loan: You have to pay monthly EMI of both your interest and principal amount combined.
- Overdraft Gold Loan: In this the bank deposits the loan amount in the borrower’s account and the interest is only charged on the amount withdrawn by the borrower.
Baroda Gujarat Gramin Bank Gold Loan Eligibility FAQ’s
✅ What type of gold can I pledge?
All gold values can be pledged for a loan. The purity of the gold will determine the loan value. For instance, coins and golds bars have have more value as the come with higher purity.
✅ What is the tenure for a gold loan?
The tenure of a gold loan can range from a few days to a few months. In rare cases, a gold loan may feature a tenure of a few years. However, this would be at the discretion of the bank and the actual loan amount disbursed.
✅ What are the modes for repayment of gold loans?
You can go directly to the branch to make a cash payment or you can use the company’s portal to pay online. According to the creditor’s terms and conditions, you can pay by debit card, credit card, etc. Contact your lender for more information.
✅ Who can avail a gold loan?
Any Indian citizen can avail a Gold Loan from banks or non-banking financial institutions (NBFCs) and generally the age criteria ranges from a minimum of 18 years to a maximum of 75 years. This might vary from lender to lender.
✅ Do I have to be an existing customer of a bank/financial institution to avail a gold loan?
Most lenders will allow you to avail a gold loan even if you are not an existing customer, provided that you have a good credit score. In certain cases, the lender may require an existing customer to introduce you before you apply for the loan.