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How to apply for a gold loan?

Author: Nikhil Chawla
by Nikhil Chawla
Posted: Jul 11, 2019

Drowning in your financial debts? Your gold ornaments, just act as a life jacket in such crunch situations through gold loans. Gold Loans are the type of loans which are provided against your gold. Bank of India is one of the leading banks which deals in loans related to gold. Bank of India is a commercial bank which is owned by the state and has its headquarters in Mumbai and was established in 1969 and has a total of 4187 branches spread all over the country. Having access to gold loans isn’t a difficult task. Apply for Bank of India Gold Loan? The applicant can go for either the offline process in which the consumer has to visit the branch of the bank or can have access to the online application as well.

Who can apply for a Bank of India Gold Loan? This may as well serve for Eligibility of Bank of India Gold Loan. Any person who is a citizen of India who is above 18 is eligible for a gold loan through any financial institution in the country. Along with this, it is not necessary for the applicant to be working, a student or even a housewife can avail a gold loan, let alone self-employed or a salaried employee. Though the maximum age of the applicant cannot be more than 70. Also, the quality of gold should lie down between 18 to 22 carats, along with that the weight of the gold should be more than 10 grams. Furthermore, there are necessary documents that are required for the procurement of the same. The documents which are required must include Voter Card/Passport/Aadhar Card/Ration Card/ Driving License/Cheque etc. These documents are required for identification purposes, along with that they serve the purpose of signature and residential proof as well. Bank of India Gold Loan Interest Rate The interest rate for the same begins at 10.75% per annum, with the processing fee being 2% of the loan amount. The loan tenure varies from 6 months to 48 months and the loan amount sanctioned varies from Rs.1750 to Rs.2100 depending upon how pure the gold is. There are usually concerns regarding the security of the loan for gold is such a valuable metal. Thus Bank of India reassures that gold loan is a secured loan and the ornaments are kept in the tight security of a bank. Although one should keep in mind that there are only certain kinds of gold ornaments which are accepted by the bank and provides loan against for (preferably hallmarked), that doesn’t include gold assets in their raw form. Furthermore, gold bricks and bars are not accepted along with minted gold coins. However, a loan is available against gold coins but they should weigh more than 50 grams. There are queries regarding whether it is better than personal loans or not? Gold loans are cheaper than personal loans. Being an unsecured loan, personal loan carries a higher rate of interest as compared to gold loan which is a secured loan.

About the Author

Gaurav Khurana worked as national sales head of Ing Investment Mgt India, Vice President & National Sales Director of Cross-Sell. Asst. Vice President & Branch Head of Citi Bank. Ceo of DidalaBank India’s First Financial Portal from 2011 to Present.

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Author: Nikhil Chawla

Nikhil Chawla

India

Member since: Jul 08, 2019
Published articles: 4

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