Product Details
Name of Bank
Bank of India
Maximum Loan Amount
INR 50,00,000
Interest Rate
9.85%
Loan to Value Ratio
85%
Maximum Loan Tenure
36 Months
Bank of India Gold Loan
Fees and Charges
Processing Fee: Upto 1 lakh: Nil; From INR 1 Lakh to INR 5 Lakh: Rs.125/- per lakh; Max. Rs.250/-; Over 5 Lakh: Rs.125/- per lakh; Max. Rs.1000/-.
Prepayment Penalty: Nil
Late Payment Penalty: Not Provided
Penal Interest: Not provided
Legal And Other Charges: Not provided
Minimum CIBIL Score
Gold loan typically do not depend on your cibil score. This is because you are provding gold as a security upfront.
Eligibility
Any Indian resident above 18 who owns gold.
Fees and Eligibility
Concession and Features
Special Concession
No
Special Features
Bank of India is offering gold loan at a rate much lower than private banks and the interest rate is one of lowest amongst PSU Banks.
Pros
Low interest rate.
Low processing fee.
Lower interest rate in case the gold is in form of hallmarked jewellery.
Gold loan does not have any end use restrictions.
Cons
LTV ratio is 85% only.
Pros & Cons
How to Open?
You can apply online or visit any branch of Bank of India.
Documents Required
KYC documents(identity proof and address proof)
Gold jewellery/coin that can be pledged.
Account Opening and Procedure
Indian Bank
Indian Bank Jewel loan provides two loan schemes
1. Bullet Repayment
2. Monthly Repayment
The interest rate varies from 8.65% to 9.00% which is moderate as compared to different banks offering gold loans. However, the LTV Ratio is low i.e., only 65-70%, the other banks in the market offer higher LTV Ratio on the gold loans. Therefore, before applying for such loan check the terms and conditions properly and compare different banks offering gold loans.
Abhijeet Saxena
Abhijeet Saxena
Nalsar University of Law
Ex- Senior Associate, Shardul Amarchand Mangaldas, Delhi
Ex - Khaitan & Co. Bengaluru,
Ex - National Stock Exchange, Mumbai,
Ex - Argus Partners, Mumbai