SBI Gold Loan: Intrest Rate, Eligibility & Documents

Anubhav Dwivedi -

Introduction:

  • SBI Personal Gold Loan is a financial product designed to provide immediate liquidity against the pledge of gold ornaments, including gold coins sold by banks. With minimum paperwork and low-interest rates, it is an attractive option for those in need of quick funds. Whether for personal, educational, or business purposes, SBI Gold Loan offers a seamless and efficient borrowing experience.

For more information or to apply through the Contact Centre, dial 1800-1234/1800-2100. Alternatively, give a missed call on 7208933143 or SMS "GOLD" to 7208933145 to get a call back from our Contact Centre.

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Features of SBI Personal Gold Loan:

SBI Personal Gold Loan stands out due to its attractive features designed to cater to various financial needs. Here are the key features:

  • Maximum Loan Amount: Rs. 50.00 lakhs
  • Minimum Loan Amount: Rs. 20,000

Margin Requirements:

  • Gold Loan (EMI based): 25%
  • 3 Months Bullet Repayment Gold Loan: 30%
  • 6 Months Bullet Repayment Gold Loan: 30%
  • 12 Months Bullet Repayment Gold Loan: 35%

No further appraisal of pledged gold is required at the time of two subsequent renewals, subject to the pledged gold remaining in the custody of the bank.

Security:

  • Pledge of Gold Ornaments: The gold ornaments are duly verified for quality and quantity before the loan is granted.

Processing Fees:

  • 3 Months Bullet Repayment Gold Loan: Rs. 200 + GST
  • 6 Months Bullet Repayment Gold Loan: Rs. 300 + GST
  • 12 Months Bullet Repayment Gold Loan: 0.50% of the loan amount, subject to a minimum of Rs. 500 and a maximum of Rs. 10,000 + applicable GST
  • Gold Loan EMI Based: 0.50% of the loan amount, subject to a minimum of Rs. 500 + applicable GST

Additionally, the gold appraiser charges are to be paid by the applicant.

Eligibility

  • Age: 18 years and above.
  • Profession: Any individual (single or joint) with a steady source of income, including bank employees and pensioners. (No income proof required).

Repayment Options

  • EMI-Based Gold Loan: Pay both the principal and interest starting from the month after the loan is given.
  • 3-Month Bullet Repayment: Pay the full principal and interest at the end of the 3-month term.
  • 6-Month Bullet Repayment: Pay the full principal and interest at the end of the 6-month term.
  • 12-Month Bullet Repayment: Pay the full principal and interest at the end of the 12-month term.

Repayment Period

  • Maximum Duration:
  • EMI-Based Gold Loan: 36 months.
  • 3-Month Bullet Repayment: 3 months.
  • 6-Month Bullet Repayment: 6 months.
  • 12-Month Bullet Repayment: 12 months.

Required Documents

  • Loan Application Along with two passport-size photos.
  • Proof of Identity & Address.
  • Witness Letter: Required for illiterate borrowers.

Time of Disbursement:

  • Documents:
  • Delivery letters for DP Note and Gold Ornaments.
  • Arrangement Letter.

Interest Rates:

  • Mean Rate of Interest: 9.7%.
Loan Type MCLR Rate Spread Effective Rate
EMI-Based Gold Loan 8.95% 1.25% 10.20%
12-Month Bullet Repayment 8.95% 0.50% 9.45%
3-Month Bullet Repayment 8.50% 0.55% 9.05%
6-Month Bullet Repayment 8.85% 0.35% 9.20%

Benefits of SBI Personal Gold Loan:

SBI Personal Gold Loan offers numerous benefits to borrowers, making it a preferred choice for many. Some of the key benefits include:

  1. Low-Interest Rates: SBI offers competitive interest rates, ensuring that the cost of borrowing remains low.
  2. Flexible Repayment Options: Borrowers can choose between EMI-based repayment or bullet repayment options, depending on their financial situation.
  3. Quick Processing: With minimal documentation and quick verification processes, loans are disbursed promptly.
  4. High Loan Amounts: Borrowers can avail of loans up to Rs. 50.00 lakhs, catering to significant financial needs.
  5. Safety and Security: The pledged gold remains safe and secure in the custody of the bank.
  6. No Hidden Charges: Transparent fee structures ensure there are no surprises for the borrower.
  7. Easy Renewal: Loans can be easily renewed without additional appraisal, provided the gold remains with the bank.

The Full Process of Availing SBI Personal Gold Loan:

Understanding the process of availing SBI Personal Gold Loan can help ensure a smooth borrowing experience. Here is a step-by-step guide:

  1. Eligibility Check: Ensure you meet the basic eligibility criteria, including age, ownership of gold ornaments, and KYC compliance.
  2. Application Submission: Visit the nearest SBI branch or apply online. Provide the necessary documents, including identity proof, address proof, and details of the gold ornaments.
  3. Gold Appraisal: The bank will appraise the gold ornaments to determine their purity and weight. This will help in assessing the loan amount you are eligible for.
  4. Loan Approval: Based on the appraisal and your application, the bank will approve the loan and inform you about the loan amount, interest rate, and repayment terms.
  5. Loan Disbursement: Once the loan is approved, the amount will be disbursed to your account. The pledged gold ornaments will be kept in the bank's custody.
  6. Repayment: Choose your preferred repayment option - EMI-based or bullet repayment. Ensure timely repayments to avoid any penalties.
  7. Renewal (if applicable): If you opt for renewal, ensure that the gold remains with the bank. No further appraisal is needed for two subsequent renewals.

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Conclusion:

  • SBI Personal Gold Loan is a reliable and efficient financial product designed to meet immediate liquidity needs. With its minimal paperwork, low-interest rates, and flexible repayment options, it offers a hassle-free borrowing experience. Whether you need funds for personal, educational, or business purposes, SBI Personal Gold Loan is an excellent choice to consider.
  • For more information or to apply through the Contact Centre, dial 1800-1234/1800-2100. Alternatively, give a missed call on 7208933143 or SMS "GOLD" to 7208933145 to get a call back from our Contact Centre.

By understanding the features, benefits, and process of the SBI Personal Gold Loan, you can make an informed decision and effectively manage your financial needs.

FAQs:

What is a personal gold loan?

  • A gold loan is a secured loan where you borrow money by pledging your gold as security. The loan amount is determined based on the value of the gold. It's a quick way to get funds with minimal paperwork and lower interest rates since the gold acts as collateral.

What is the minimum and maximum loan amount I can avail of under the SBI Personal Gold Loan?

  • The minimum loan amount is Rs. 20,000, and the maximum loan amount is Rs. 50.00 lakhs.

How Much Gold Loan Per Gram in SBI?

  • The gold loan per gram in SBI can vary based on the prevailing market price of gold, the purity of the gold ornaments, and the specific terms set by the bank at the time of loan application. As of the current rates, SBI Gold Loan interest rate ranges from 8.75% to 9.60% per annum.

How much gold loan per 10 gram?

  • For instance, if someone owns 10 grams of 22-carat gold and the gold rate is INR 4,000 per gram, the total value of the gold would be INR 40,000. Based on this, the person can borrow up to INR 30,000, which is 75% of the total gold value.

What are the margin requirements for different repayment options? The margin requirements are as follows:

  • Gold Loan (EMI based): 25%
  • 3 Months Bullet Repayment Gold Loan: 30%
  • 6 Months Bullet Repayment Gold Loan: 30%
  • 12 Months Bullet Repayment Gold Loan: 35%

Is there any processing fee for the SBI Personal Gold Loan?

Yes, the processing fees are as follows:

  • 3 Months Bullet Repayment Gold Loan: Rs. 200 + GST
  • 6 Months Bullet Repayment Gold Loan: Rs. 300 + GST
  • 12 Months Bullet Repayment Gold Loan: 0.50% of the loan amount, subject to a minimum of Rs. 500 and a maximum of Rs. 10,000 + applicable GST
  • Gold Loan EMI Based: 0.50% of the loan amount, subject to a minimum of Rs. 500 + applicable GST

Do I need to pay any charges for gold appraisal?

  • Yes, the gold appraiser charges are to be paid by the applicant.

Can I renew my gold loan without further appraisal?

  • Yes, no further appraisal of pledged gold is required at the time of two subsequent renewals, subject to the pledged gold remaining in the custody of the bank.

What happens if I fail to repay the loan on time?

  • Failure to repay the loan on time may result in penalties and can also affect your credit score. The bank may also take action to recover the dues by selling the pledged gold.

Can I apply for an SBI Personal Gold Loan online?

  • Yes, you can apply for an SBI Personal Gold Loan online or visit the nearest SBI branch.

Is the pledged gold safe with the bank?

  • Yes, the pledged gold remains safe and secure in the custody of the bank.

What types of gold can be pledged for the loan?

  • Gold ornaments, including gold coins sold by banks, can be pledged for the loan.

How quickly can I get the loan amount disbursed?

  • The loan amount is disbursed promptly after the gold appraisal and loan approval process.

What is the interest of 1 lakh in SBI gold loan?

  • The interest rate for SBI gold loans can vary depending on the specific scheme. For a loan of Rs. 1 lakh, the interest rates range from 8.75% to 9.60%.

What is the EMI on a 1 lakh gold loan?

  • If the interest rate is 10% per year and the loan is for one year, the total interest paid would be Rs 5,499, with an EMI of Rs 8,791. However, if the same 10% interest rate is applied but the loan term is extended to two years, the interest increases to Rs 10,747, while the EMI drops to Rs 4,614.

How to calculate a gold loan?

  • To calculate the gold loan amount, multiply the weight of your gold by the current gold loan rate per gram. This will give you the total amount you can borrow.

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