Gold Loan: Do you have gold and you need money, then the gold loan can be a better option for you. A gold loan is a type of secured loan in which you can take a loan by pledging your gold with a bank or finance company.
The loan amount always depends on the weight and purity of your gold. In this, you can easily take a loan by pledging your gold or gold jewellery. But which bank will give you the best gold loan.
HDFC Bank
If you take a gold loan of 5 lakhs from HDFC Bank, then the bank charges you an interest of 8.2% on it, in such a situation you will have to pay a monthly EMI of Rs 22568.
Indian Bank
If you take a gold loan of 5 lakhs from an Indian Bank, then the bank charges you an interest of 8.65% on it, in such a situation you will have to pay a monthly EMI of Rs 22599.
Union Bank of India
If you take a gold loan of 5 lakhs from Union Bank of India, then the bank charges you an interest of 8.7% on it, in such a situation you will have to pay a monthly EMI of Rs 22,610.
Bank of India
If you take a gold loan of 5 lakhs from the Bank of India, then the bank charges you an interest of 8.8% on it, in such a situation you will have to pay a monthly EMI of Rs 22,631.
Canara Bank
If you take a gold loan of 5 lakhs from Canara Bank, then the bank charges you an interest of 9.25% on it, in such a situation you will have to pay a monthly EMI of Rs 22,725.
Bank of Baroda
If you take a gold loan of 5 lakhs from the Bank of Baroda, then the bank charges you an interest of 9.6% on it, in such a situation you will have to pay a monthly EMI of Rs 22,756.
State Bank of India (SBI)
If you take a gold loan of 5 lakhs from the State Bank of India, then the bank charges you an interest of 9.6% on it, in such a situation you will have to pay a monthly EMI of Rs 22,798.
ICICI Bank
If you take a gold loan of 5 lakhs from ICICI Bank, then the bank charges you an interest of 10% on it, in such a situation you will have to pay a monthly EMI of Rs 22,882.
Axis Bank
If you take a gold loan of 5 lakhs from Axis Bank, then the bank charges you an interest of 17% on it, in such a situation you will have to pay a monthly EMI of Rs 24,376.
Benefits of Gold Loan
Get it quickly: Gold loans are available very quickly compared to other loans.
Less paperwork: Gold loans do not require much paperwork.
Income Tax Benefits: The interest charged on a gold loan can help you avoid taxes.
Disadvantages of Gold Loan
High Interest Rates: Interest rates on gold loans can be slightly higher than other loans.
Safety of Gold: If you are unable to repay the loan, your gold can be auctioned.
Process of taking a gold loan
Selecting a bank: First of all, you have to select a reliable bank or finance company.
Prepare documents: You have to submit a certificate of purity of gold along with your identity and address proof.
Gold valuation: The bank will evaluate your gold and give you the loan amount based on that.
Signing loan agreement: To take a loan, you have to sign an agreement with the bank.