About Federal Bank Gold Loan
As the future is uncertain, we never know when we may face an urgent need for some financial resources. There is nothing bad or wrong about facing situations like that, as one said when nothing goes right, turn left and in a situation to meet financial emergency Gold Loan service is the left turn for you.
Thus, make use of your gold in your bad time, and overcome the financial problems. Though there is a lot of financial banking and non-banking companies that provide you with a gold loan, Federal Bank is considered to be one of the best.
Why Choose Federal Bank Gold Loan?
Federal Bank offers loan against gold at the lowest Interest rate. Being one of the significant gold loan suppliers, Federal Bank understands the necessities of the clients and disburses the loan amount in 60 minutes. The gold promised is securely secured in the bank locker, and you don’t need to stress over its safety.
Advantages of Federal Bank Gold Loan
- A gold loan is a fast loan as compares to other loans individual get cash within a day
- The gold loan can be taken for education purpose
- It tends to help extend a business or working capital requirement
- To enhance agribusiness by purchasing apparatus for the water system and different needs
- At the point when a healing crisis strikes, a gold loan can be a friend in need.
- To get urgent money while going on a trip
- Gives the feeling of utilising a possess advantage for fund your requirements
Federal Bank Gold Loan Eligibility
Federal Bank Gold Loan is a financial product provided by the Bank which caters to your needs of short term or long term funds. It is easy to avail commercial service provided by banks at low rates of interest and also requires minimal documentation for the same. Federal Bank gives you the Loan amount within an hour of application as the valuation and approval process is quickly done, keeping in mind your urgency regarding the need for funds.
Major Eligibility criteria for availing the Federal Bank Gold Loan is:
- The applicant should be a permanent Indian citizen who is at least 18 years of age and not more than 70 years (In most cases).
- The applicant should be the rightful owner of the gold that he/she wishes to pledge with the Bank.
- The Minimum weight of gold that can be pledged is 10 grams and the applicant becomes ineligible for Gold Loan if he/she has less than 10 grams of gold.
- The Minimum purity of gold required to be eligible for loan is 18 carats. Also, Gold coins issued by banks are accepted up to 50 grams (In most cases).
- 24 Carat Gold in any form, Gold bars, Gold biscuits, etc. are not recognised as valid forms of gold to be kept as security for the Federal Bank Gold Loan.
- A good Credit or CIBIL score is not required to apply for the Gold Loan as it is a fully secured financial service against your gold as collateral security.
Federal Bank Gold Loan Documents Required
Gold Loan or Loan Against Gold is a loan product offered to the borrowers by the Federal Bank wherein funds are provided for fulfilling the financial needs of the applicant. The gold ornaments of the applicant are kept as security by the Bank in exchange for the funds. The entire Federal Bank Gold Loan process is hassle-free and easy to get with minimal documentation. The Bank ensures high security of your gold ornaments till the loan is closed.
Documents required for Applying for Federal Bank Gold Loan are :
A duly filled and signed Gold Loan application form shall be submitted along with the following documents:
- 2 latest passport-sized photographs
- Basic KYC documents :
Identity Proof (Only one is required): Aadhar Card, Pan Card, Passport, Voter ID, and etc.
Residence Proof (Only one is required): Aadhar Card, Pan Card, Voter ID, Ration Card, Electricity or Water Bills in the name of the applicant, or Rental Agreement(In case you live in a rented house).
- Agricultural Land Proof and Income Statement of the applicant are required in the case the applicant wants the Federal Bank Gold Loan for Agricultural purposes.
- If you are an existing customer of the Bank you may not be required to submit any documents as the Bank will already have your verified details.
**Any other documents as requested by the Bank shall be duly submitted.**
Federal Bank Gold Loan Interest Rate, Fees and Charges
Federal Bank Gold Loan can fulfil all your urgent short term and long term monetary requirements. The rate of interest that you will be charged with depends on the total loan amount as well as the quality/purity of the gold you are to keep as security with the Bank. Federal Bank Gold Loan interest rates offered by the Bank are lower in comparison to other loans because it is a fully secured loan.
The Gold Loan interest rates in the Federal Bank starts at 10.70% per annum.
The Bank also charges some additional fees along with the rate of interest in some cases, which are :
- Processing fee – 1% of the loan amount or ₹1000 whichever is higher
- Documentation charges
- Gold Valuation charges
- The Bank charges no additional fees for part payment or the foreclosure of the Gold Loan.
Know More – Gold Loan Interest Rate
Federal Bank Gold Loan Rate Per Gram
The amount of Gold Loan that you get per gram of your gold is directly dependent on the purity of your gold and the current prevailing rates of that purity of gold in the market. The rate of gold changes daily in the market and therefore, the Federal Bank Gold Loan Rate per Gram also varies every day. Canara Bank gives a funding of up to 70% of the total market price of your gold keeping the remaining 30% as security margin.
The amount you will get for a gram of gold varies depending on its purity and the market price for your Federal Bank Gold Loan.
**Keep in mind that only the weight of gold is considered and not the weight of stones on your jewellery**
Federal Bank Gold Loan Apply Online
Applying for the Federal Bank Gold Loan service is a simple and hassle-free process which can be done from the comfort of your home. You can do it online by visiting the Bank’s official website and submitting a form with basic information regarding yourself and the Gold Loan you wish to avail. You will then need to visit the branch with the required documents and your gold.
You can also apply with Dialabank by following the below-mentioned steps to get a Gold Loan as per your need.
- Visit Dialabank’s digital platform, where you will have to just fill a form without any registration.
- Our Relationship Manager will contact you and assist you throughout the Gold Loan process and guide you in fulfilling your financial needs.
- You will get personalised service, giving you the option of comparing and taking the best deal according to your needs without any extra charges.
- With Dialabank, you can compare the different offers and schemes from different banks based on funding provided and the rate of interest charged for choosing the best loan deal for yourself.
Federal Bank Gold Loan EMI Calculator
How to Pay Your Federal Bank Gold Loan EMI?
Your Federal Bank gold advance can be reimbursed in the following three different ways.
- Standing Instruction (SI): If you are a current record holder with Federal Bank, Standing Instruction is the best method of repayment. Your EMI sum will be charged automatically toward the finish of the month to month cycle from the Federal Bank account you indicate.
- Electronic Clearing Service (ECS): This mode can be utilised if you have a non-Federal Bank account and might want your EMIs to be charged consequently toward the finish of the month to month cycle from this record.
- Post-Dated Checks (PDC): You can submit post-dated EMI checks from a non-Federal Bank account at your closest Federal Bank Loan Branch. A new arrangement of PDCs should be submitted on time. It will be ideal if you note Post Dated Checks will be gathered non-ECS areas as it were.
Gold Ornaments Accepted for Federal Bank Gold Loan
Not every type of gold is accepted by the banks to provide the Gold Loan. There are various restrictions regarding the valuation Gold.
- The purity or quality of the gold should be in between 18 Karats to 22 Karats.
- The raw form of gold is not acceptable.
- Gold coins that weight less than 50 Grams are accepted.
Use of Federal Bank Gold Loan
The funds acquired by availing the Federal Bank Gold Loan service can be used for several purposes such as:
- To finance any personal expenses such as a wedding, travel, payment of higher education fees, etc.
- For all your business needs, such as buying raw material, expansion of business, etc.
- You can also avail a Gold Loan for agricultural purposes. The Bank offers lower rates of interest for Gold Loans that are used for agriculture or allied activities.
FAQs About Federal Bank Gold Loan
Gold Loan rate per gram depends on the quality of your gold and the current market rates. Federal Bank gives funding of up to 75% of your gold’s value for non-agricultural purposes and financing of up to 82% for agricultural purposes.
Federal Bank provides Gold Loans at competitive interest rates for a maximum loan amount of ₹1.5 crores and a tenure of 6 to 12 months. The Gold Loan can be used to finance any of your expenses and comes with zero processing fees.
Federal Bank Gold Loan interest rates start at 11.75% per annum to a maximum of 13.50% per annum. The Bank does not charge you with any processing fee on the loan.
Federal Bank provides online payment facilities to repaying your Gold Loan. You can also give a Standing Instruction or use ECS to pay directly from your bank account. For more information on your repayment options, you can contact the customer care executive of the Bank.
You can apply for Federal Gold Loans by visiting the nearest branch with your gold and documents. Your gold will be valued, and loan terms will be decided with complete transparency.
You will need to visit your Gold Loan branch at the end of your loan tenure to apply for a renewal of your loan. Your gold will be revalued, and new terms will be decided based on this valuation.
Taking a Federal Bank Gold Loan is a hassle-free process with minimal documentation (just your Aadhar card and PAN card). Visit the nearest branch with your gold or apply online with Dialabank to avail personalised assistance and the best offers for your Gold Loan.
Any Individual can avail Federal Gold Loan from Federal Bank with minimal documents for a loan amount of up to ₹1.5 crores. The loan can be availed for personal, business, or agricultural purposes.
Fulfil your urgent monetary needs with a Gold Loan from the Federal Bank. Visit the nearest branch with your gold and documents and get a loan within an hour. You can also apply with Dialabank and compare the offers of different banks and financial companies to get the best deals.
You can check your Gold Loan status by visiting the branch in person or contacting the customer care executive.
Close your Gold Loan with Federal Bank by visiting the bank branch with your loan documents and paying all your due amount. Upon verification of your payments, your gold will be returned to you and your loan will be closed.
Renewal of Federal Bank Gold Loan can be done by visiting the branch with all the documents related to your loan and getting your gold released for revaluation. The new loan terms are decided and agreed upon for completing the renewal process.
If someone is unable to pay the amount due at the end of the tenure, then the Bank charges a penalty fee on the amount due and may even auction the gold kept to recover the amount.
Federal Bank has over 1200 branches across India for all your banking needs.
Table of Contents
- 1 About Federal Bank Gold Loan
- 2 Why Choose Federal Bank Gold Loan?
- 3 Advantages of Federal Bank Gold Loan
- 4 Federal Bank Gold Loan Eligibility
- 5 Federal Bank Gold Loan Documents Required
- 6 Federal Bank Gold Loan Interest Rate, Fees and Charges
- 7 Federal Bank Gold Loan Rate Per Gram
- 8 Federal Bank Gold Loan Apply Online
- 9 Federal Bank Gold Loan EMI Calculator
- 10 How to Pay Your Federal Bank Gold Loan EMI?
- 11 Gold Ornaments Accepted for Federal Bank Gold Loan
- 12 Use of Federal Bank Gold Loan
- 13 FAQs About Federal Bank Gold Loan