What is a Gold Loan

Are you crushed with your financial crisis? Gold Loan may be the ray of hope you need to lift you up. As the name suggests these are the type of loans which are issued against gold ornaments. You just have to deposit your gold with the bank and you will get your loan amount corresponding to it. State Bank of India Gold Loan is the most prevalent in the market when it comes to gold loans. These are a very easy convenient type of loan available to overcome any sort of immediate financial need. State Bank of India is one of the leading banks in the country and not only this; there are certainly other reasons along with this which may encourage you to take your gold loan from State Bank of India. You can apply for state bank of India Gold Loan either through an offline process or online process. And there are many reasons why you should choose SBI over other banks. To begin with, there is no income criteria required for such loans by the bank. Thus even a non-working person can avail such a loan. Furthermore, No CIBIL score is required for availing such loans. Furthermore, with SBI there is a facility of overdraft is also available with such loans that is you only have to pay the interest for your EMI and you can pay off the principal amount when the loan tenure is over. State Bank of India Gold Loan Eligibility- Any Indian citizen who is above the age of 18 can avail the gold loan, though the maximum age cannot be more than 70. The quality of gold should vary from 18 carats to 22 carats and the weight of the gold should be more than 10 grams. State bank of India Gold Loan Documentation- 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. There are usually concerns regarding the security of the loan for gold is a precious and expensive metal. Thus State Bank of India reassures that gold loan is a secured loan and the customer should not be worried regarding the security of its ornaments since they are kept in the tight surveillance of the 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, the personal loan carries a higher rate of interest as compared to a gold loan which is a secured loan.

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.