With the second wave of corona, gold demand has increased again. In that case, if you are one of those preparing to take out a gold loan, compare the interest rate before borrowing. Financial experts say gold loans can be taken from a government bank at a lower interest rate. At the same time, borrowing gold from non-banking companies is quite expensive.
– Government banks are offering gold loans at interest rates of 07% to 7.50%
– Muthoot Finance and Bandhan Bank Goldlon charge interest from 18% to 27%
– SBI is offering a maximum of 20 thousand to 50 lakh gold loans
– Most banks offer gold loans for 36 months
These documents are required
To borrow gold from a bank or NBFC, you will need to submit various documents. These include your identity card, proof of address and your passport photo. These documents are usually required. Any required documents may vary from financial institution to financial institution.
This fee has to be paid
Generally the borrower has to pay the transaction / processing fee to obtain the loan. Banks charge processing fees up to one percent. In addition to processing fees, the borrower may also have to pay for the gold valuation at the time the loan is taken. In addition, documentation and foreclosure costs may also have to be paid.
The IBA approached the government to cover interest-deductible interest
