Federal Bank Gold Loan

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Loan Amount Up to 1 Crore
Loan Tenure Up to 48 Months
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About Federal Bank Gold Loan

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.

Federal Bank Gold Loan is here to provide a helping hand to you so that you can reach your final destination. Gold Loan in Fedreal Bank comes with a lot of benefits and special features.

Thus, make use of your gold in your bad time, and overcome the financial problems. Though, there are a lot of financial banking and non-banking companies that provide you with a gold loan, but Federal Bank is considered to be one of the the best.

Federal Bank Gold Loan at a Glance
Interest RateStarts at 11.75%
Gold Loan Per GramVaries depending on the purity of gold
Tenure6 to 12 months
Processing Fee1% 

Federal Bank Gold Loan Features

  1. Federal Bank Gold Loan is straightforward to apply. One can apply for the gold loan online within a few minutes.
  2. If a borrower is eligible, the loan can be approved within 5 minutes.
  3. After the approval of the gold loan, if the borrower has his complete documents, the loan can be disbursed quickly.  One can say it can be disbursed within a few hours.
  4. The responsibility of the Gold is all at the Bank’s end. Borrower’s gold assets will be kept under very tight and fireproof security.
  5. The rate of interest provided by the Bank is quite affordable.
  6. The documentation process is straightforward.
  7. The Bank will not ask the reason behind taking the gold loan; one can use this loan amount according to their needs.

Know More –  Gold Loan Features and Benefits

Who can get a Federal Bank Gold Loan?

The borrower has to qualify some eligibility criteria; so that he will be able to apply for Gold Loan.

  1. The interested candidate must be an Indian citizen to avail Gold Loan.
  2. The minimum age of the candidate should be 18 years.
  3. The applicant should have a minimum of 10 grams of Gold.

Know More – Gold Loan Per Gram

Form of Gold 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.

  1. The purity or quality of the Gold should be in between 18 Karats to 22 Karats.
  2. The raw form of Gold is not acceptable.
  3. Gold coins that weight less than 50 Grams are accepted.

Know More – Top Reasons why Gold Loan is the best borrowing option

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:

  1. 2 latest passport-sized photographs
  2. 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). 
  3. 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.  
  4. 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 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 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 financial 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, and 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 Interest Rate

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.

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 on the basis of funding provided and the rate of interest charged to choose the best loan deal for yourself.

Use of Federal Bank Gold Loan

The funds acquired by availing the Federal Bank Gold Loan service can be used for a number of purposes such as:

  • To finance any personal expenses such as a wedding, travel, payment of higher education fees, and etc. 
  • For all your business needs such as buying raw material, expansion of business, and 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

Q. How much Gold Loan can I get per gram in Federal Bank?

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 funding of up to 82% for agricultural purposes.

Q. What is Federal Bank Gold Loan?

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.

Q. What is the Gold Loan interest rate in Federal Bank?

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.

Q. How to pay Federal Bank Gold Loan online?

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.

Q. How to apply Gold Loan in Federal 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.

Q. How to renew Federal Bank Gold Loan online?

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.

Q. How to take Gold Loan from Federal Bank?

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 personalized assistance and the best offers for your Gold Loan.

Q. What is Gold Loan in Federal Bank?

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.

Q. How to get Federal Bank Gold Loan?

Fulfill 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.

Q. How to check Federal Bank Gold Loan status?

You can check your Gold Loan status by visiting the branch in person or contacting the customer care executive.

Q. How to close Federal Bank Gold Loan?

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 back to you and your loan will be closed.

Q. How to renew Federal Bank Gold Loan?

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.

Q. What happens if someone defaults Federal Bank Gold Loan?

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.

Q. How many branches of Federal Bank Gold Loan?

Federal Bank has over 1200 branches across India for all your banking needs.

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