Due to Covid-19, many people are facing financial problems. Many people are facing job losses, while others got salary cuts or delayed salary payments. Many people are looking for financial help like loans or other options to meet their financial emergencies. If you are planning to take a loan to manage your financial problems, then the gold loan would be better than personal loans. The gold loan has relatively low-interest rates and fast approval processes which makes it a better alternative than personal loans. Recently several banks have launched new gold loan schemes.
State Bank of India offers gold-loan schemes where a customer can avail of a loan up to 20 lakh. Any person above the age of 18 is eligible to apply for the loan. It is not required to submit any proof of income for availing the loan. However, the customer is required to have a steady source of income to apply for it. Details regarding SBI Personal Gold Loan:-
Interest rate: SBI offers an interest rate of 1.25% above the MCLR (marginal cost of funds-based lending rate) for one year on a gold loan. Therefore, the SBI Personal Gold Loan scheme will fetch an interest rate of 7.75% for a year. SBI will charge 0.50% of the loan amount and minimum ₹500 (applicable GST on both) as processing fees for the gold loans. For Realty Gold Loan, a gold loan exclusively for SBI Housing Loan Customers, the interest rate will be 7.25% per annum.
Loan amount: Customers can avail of a maximum amount of ₹20 lakh under this gold loan scheme. The minimum amount a customer can avail of for the gold loan is ₹20,000.
Loan repayment: There are several repayment options for different kinds of gold loans. The repayment options of various gold loans are as given below:-
• Gold Loan: The repayment of the principal and interest will be commencing from the month following the month of disbursement. The maximum repayment period will be 36 months.
• Liquid Gold Loan: Each individual availing the loan must have an overdraft account with transaction facility and monthly interest is to be served. This scheme also has a repayment period of up to 36 months.
• Bullet Repayment Gold Loan: The customer should repay this loan on or before the term of the loan or closure of the account. The maximum repayment period will be 12 months for Bullet Repayment Gold Loan.
Document needed to apply for a gold loan: The process of sanctioning the gold loan and disbursing the amount is very simple. The following documents must be submitted while applying for a gold loan:
• Application form for the loan with two copies of photographs.
• Proof of identity with proof of Address of the applicant.
• Witness letter in case of illiterate applicants.