Documents required are: • Id proof, such as your Driving License, Pan Card, Form 60/61, Passport, and Voter ID card • Address proof, such as House Registration Documents, and Utility Bills. You need to provide address proof, photo identity and signature proof along with three passport size photographs.
FAQ Tag: gold loan
How can the gold against the loan be reclaimed?
It’s very simple. Repay the loan and get back your gold jewellery.
Are there any foreclosure charges on a gold loan?
Loan foreclosure charges range from 0%-3% and are applicable on the outstanding amount of your gold loan.
What happens if I am not able to repay my loan amount?
In case, you fail to repay your loan then the Bank’s or NBFC’s will auction your gold assets. But, it will happen only after giving you sufficient notice. They will also send auction intimation prior to the auction.
What happens if the loan is not repaid on the due date?
If you fail to repay the loan amount on or before the due date, penal interest is charged on the loan amount. Penal interest will be applicable according to the terms of your gold loan agreement.
Will I get repayment reminders ?
Yes. After loan is disbursed, lender will send you timely reminders in a medium of your choosing (SMS, email, call) as per your repayment schedule.
What are types of repayment?
There are three types of repayment – 1. INTEREST ONLY: Borrower pays only simple interest on the principal amount every month. At the end of the tenure, the borrower pays the principal and closes the loan. 2. EMI: A fixed amount is paid by borrower to a lender at a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month, Over a specified number of years, the loan is paid off in full. 3. BULLET: Bullet is where payment of entire principal and interest is made at the end of the loan term.
What collateral needs to be provided for getting this gold loan?
Any kind of gold jewellery of purity over 18 karat can be provided as security to avail a gold loan. Please note, some banks do not offer loan against gold coins and the weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.
How is the market value of my jewellery calculated?
The market value of your gold is calculated according to the per gram market rate of gold on the day of the loan application.
What is the interest charge applicable on gold loan?
The interest rate on gold loan varies from one lender to another and starts as low as 0.83% per month to 2% per month. You can view applicable rate of interest once you enter your details on our Gold Loan service section.
