Features of J&K Bank Gold Loan
J&K Bank will appraise your gold jewellery and provide you with a monetary value. It’s a straightforward solution for you, whether you’re unemployed or have a bad credit report; a J&K Bank Gold Loan can assist you to fulfil your needs. It’s a loan that can be used to deal with any financial emergency. The bank will pay you 75% of the gold’s current market worth. The “AB Swarna Loan Scheme,” which is designed for the Non-Agricultural Gold Loan (NAGL) sector, is one of the programmes offered by the J & K Bank Gold Loan.
The following are some of the most important characteristics of gold loans:
- Quick Processing – Banks and other lending institutions can easily provide gold loans because they are secured by genuine gold. Banks prefer lending against gold because they can rapidly sell the gold if the borrower defaults. As a result, such loans are often disbursed within a few hours by banks. As a result, processing times are decreased, giving borrowers more convenience.
- ‘Pay Interest Only’ Option – A common aspect of gold loans is that the borrower can pay only the interest component of the loan while repaying it. The principal component could be paid at the end of the loan term or at the time of closing.
- Comparatively Lower Interest Rate – Because gold loans are secured, as opposed to unsecured loans like personal loans, banks charge a lower interest rate. Interest rates on gold loans range from 13 to 14 per cent. Interest rates for personal loans, on the other hand, are frequently about 15%. For applicants who can provide additional collateral, the bank decreases the interest rates on gold loans.
- Zero Processing Fees – Many banks and NBFCs do not charge any processing fees because gold loans are given quickly with gold as collateral stored by the bank.
- Minimal Foreclosure Charges – Some banks and lenders do not levy prepayment penalties on gold loans or charge them at a low rate of 1%.
- No-income Proof to be Furnished – Most gold loan applications do not require proof of income because the loan is secured by the gold pledged by the applicant.
- No Impact of Poor Credit History – The loan amount is usually determined by the bank depending on the borrower’s repayment ability and credit history. However, this is not the case with gold loans. Lenders are confident in the repayment of the principal component because gold is used as collateral, and they do not base their choice on the borrower’s credit history.
- Security of Physical Gold – The lender is responsible for maintaining the physical gold in a secure manner. Borrowers do not have to worry about it because it is generally kept safe in the bank’s vault. The bank returns the gold once they have paid back the loan.
J&K 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|
|ICICI 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|
J&K Bank Gold Loan EMI calculator
If you take out a gold loan, the gold loan calculator can help you figure out how much you’ll have to pay in monthly instalments. The amount of your loan, the period of the loan, and the interest rates charged all go into determining your EMI. The essential areas that a Gold loan calculator evaluates are as follows:
- The EMI rises in proportion to the loan amount.
- As the interest rate rises, the EMI amount climbs as well.
- The longer the loan duration, the smaller the EMI payment.
J&K 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
J&K Bank Gold Loan Documents Required – FAQs
✅ When should you opt for a gold loan?
A gold loan is a secured loan. If you have an urgent financial requirement and do not have the required CIBIL score or income, you can apply for a gold loan by pledging your gold jewellery as collateral with the banks.
✅ How to calculated gold loan interest rates?
Gold loans are thought to be a safe investment. Although physical gold may be worth little or nothing, borrowers can use gold loans to pay for a range of expenses.
✅ How to calculate gold loan EMI amount?
You can quickly determine the gold loan EMI amount with a gold loan calculator.
Table of Contents
- 1 Features of J&K Bank Gold Loan
- 2 J&K Bank Gold Loan Comparision with banks
- 3 J&K Bank Gold Loan EMI calculator
- 4 J&K Bank Gold Loan Documents Required
- 5 J&K Bank Gold Loan Documents Required – FAQs