Karnataka Bank Gold Loan

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About Karnataka Bank Gold Loan

Karnataka Bank Gold Loan

Karnataka Bank Limited is a private sector bank in Mangalore, Karnataka. It is a scheduled commercial bank. The bank was founded in 1924, as Karnataka Bank Limited. The bank deal with major financial products like loans, credit cards, saving schemes, investments and many more.

Karnataka Bank offers a Gold Loan to meet financial requirements of customers who require immediate cash against their gold assets. Primarily catering to borrowers from the middle and lower income group, Karnataka Bank loan offers instant credit for multiple purposes.

Karnataka Bank loan provides an effective solution to meet your temporary monetary contingencies. The funds from the Karnataka Bank Gold loan can be used to meet the expenses for weddings, education, business expansion or any other similar purpose. The bank offers the loan with minimal documentation and secure storage, the Karnataka Bank loan is a simple funding option to meet your financial needs.

Karnataka Bank Gold Loan at a Glance
Interest RateStarts at 10.75%
Gold Loan Per GramVaries depending on the purity of gold
TenureUp to 12 months
Processing Fee1% + GST

Features & Benefits of Karnataka Bank Gold Loan

  1. Multipurpose – Karnataka Bank Gold loan can be used to fulfill any monetary need of the borrower. The funds receive can be used for personal expenditure such as a wedding, travel, etc. or for business expenditure such as expansion etc.
  2. Quick approval – Karnataka Bank Gold Loan can be availed easily without any hassle. The loan process involves minimal paperwork and requires basic documentation to get the approval.
  3. High quantum – Loan amount is disbursed quickly and can be taken in cash or in any bank account. You get the option of choosing the denomination in case of amount taken in cash.
  4. Competitive interest – Karnataka Bank Gold Loan is offered at competitive rate of interests and very low processing fee. The bank does not charge any documentation fee from the borrower.
  5. Prepayment – Karnataka Bank gives the borrowers the option of prepaying the Gold Loan without charging any addition charges. You just hav to pay the due amount.
  6. Karnataka Bank gives a funding of up to 70% of the total market price of your Gold keeping the remaining 30% as security margin.

Karnataka Bank Gold Loan Interest Rate

Karnataka 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. Gold Loan interest rates offered by the Karnataka Bank are lower in comparison to other loans because it is a fully secured loan.

The Gold Loan interest rates in the Karnataka 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
  • Karnataka Bank charges no additional fees for part payment or the foreclosure of the Gold Loan.

Who can get a Karnataka Bank Gold Loan?

  1. Any salaried individual.
  2. Any self-employed.
  3. Housewives/homemaker.
  4. Students (age should more than 18 years).
  5. A farmer.

Karnataka Bank Gold Loan Eligibility

Gold Loan is a financial product provided by Karnataka 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. Karnataka 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 Karnataka 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 Karnataka 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.

Karnataka Bank Gold Loan Documents Required

Gold Loan or Loan Against Gold is a loan product offered to the borrowers by the Karnataka 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 Karnataka 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 Karnataka 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 Karnataka 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.**

Fees and Charges for Karnataka Bank Gold Loan

Service Charge on Loans taken for Priority Sector

  • Under Rs 10 lakh- Rupees 250.
  • Loans exceeding Rs 10 lakh- Rupees 500.

Service charge on Loans taken for Non Priority Sector

  • Under Rs 5 lakh- Rupees 500.
  • Loans between Rs 5 and 10 lakh- Rupees 1,000.
  • Loans exceeding Rs 10 lakh- 0.2% of Loan subject to a maximum of Rs 5,000.

Use of Karnataka Bank Gold Loan

The funds acquired by availing the Karnataka 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. 

Karnataka 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 Karnataka Bank Gold Loan Rate per Gram also varies every day. The amount that you will receive for a gram of Gold varies depending on its purity and the market price for your Karnataka Bank Gold Loan. 

**Keep in mind that only the weight of gold is considered and not the weight of stones on your jewellery**

Karnataka Bank Gold Loan Apply Online

Applying for the Karnataka 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.

FAQs About Karnataka Bank Gold Loan

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

The per gram rate varies according to the quality of the gold to be pledged. The better quality gold gets you more funding under your Karnataka Bank Gold Loan scheme.

Q. What is Karnataka Bank Gold Loan?

Karnataka Bank Gold Loan can be used to meet your immediate requirements by pledging your gold ornaments as security to receive funds from the bank. A maximum aggregate loan amount of ₹25 lakhs can be availed by an individual for a maximum tenure of 12 months.

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

The latest MCLR rates in Karnataka Bank start at 8.35% for Overnight to 9.10% for One year. The Gold Loan interest rates vary in accordance with these rates.

Q. How to pay Karnataka Bank Gold Loan online?

Your Gold Loan with Karnataka Bank can be repaid in monthly EMIs that are automatically deducted from your bank account.

Q. How to apply Gold Loan in Karnataka Bank?

You can apply for a Gold Loan in Karnataka Bank by visiting the nearest branch with your gold ornaments. Karnataka Bank Gold Loan is a quick disbursing loan scheme that helps you finance all your expenses.

Q. How to renew Karnataka Bank Gold Loan online?

Renew your Gold Loan with Karnataka Bank at your loan branch by filling a simple renewal form and getting your gold revalued at current market prices.

Q. How to take Gold Loan from Karnataka Bank?

You can take a Gold Loan from Karnataka Bank if you are above the age of 18 years with possession of gold. Your gold will undergo a valuation process and upon verification, the amount will be disbursed to your bank account.

Q. What is Gold Loan in Karnataka Bank?

Karnataka Bank Gold Loan is a loaning product whose purpose is to meet the immediate finance requirements for agricultural purposes, business & personal needs by the pledge of gold ornaments. You can avail maximum funding of ₹25 lacs in 5 accounts of ₹5 lacs each for a tenure of up to 12 months. The bank provides quick disbursal with easy repayment and prepayment options.

Q. How to get Karnataka Bank Gold Loan?

Get a Gold Loan from Karnataka Bank by simply filling and submitting an application form at the nearest branch. You can also fill an inquiry form at Dialabank and compare offers from different banks and financial companies.

Q. How to check Karnataka Bank Gold Loan status?

Check your Gold Loan status by contacting your loan officer. You can stay updated with your loan details anytime by contacting the customer care number of the bank.

Q. How to close Karnataka Bank Gold Loan?

Your Gold Loan be repaid as a bullet payment at the end of the tenure with servicing interest to be paid monthly.

Q. How to renew Karnataka Bank Gold Loan?

The renewal process of Gold Loan is fairly simple. You only have to visit the branch with all your loan-related documents and get your gold kept as security released and revalued at the current market prices. New terms for the loan are decided and after reaching an agreement the loan is renewed.

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

If someone defaults with repayment of the Gold Loan, the bank charges a penalty fee and has the right to even sell your gold to recover the money.

Q. How many branches of Karnataka Bank Gold Loan?

Karnataka Bank Limited has a network of 848 branches across 22 states and 2 union territories.

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