The value of gold in India has highly risen, many household save to buy gold. It is believed that India homes can never lack gold on their closets. Wondering why the urge and demand of gold is at the top notch? SBI bank which is a famous bank in Indian country has come up with plan involving gold. The state bank of Indian has a loan service plan where individual and receive money in exchange for gold.
The loan goes up to RS 20 lakh to it esteem clients. This a promising amount to the customers as they will only present their gold ornaments. The banks collects ornaments and gold coins, the loans is processed fast and has low interest rate plus and flexible duration.
State bank of India has set a website where any individual can check the interest rate and qualifications. Any citizen with the right age of 21 can apply for the loan. The bank state further that people can take the loan jointly or single. The individual or group should have a steady income to help them pay the loan at ease. Well-paying clients qualify for higher loans after the first loan. The loan also applies for pensioners and banks employees and no paper work is need to show your money flow. The loan amount is also determine by the weight and the quality of gold.
What are the features of the Gold loan?
Every loan offered has different features and terms which the client has to comply with. Here we have few features as follows.
- The loan has gold ornaments as the security. It only return after the repayment of the loan.
- The loan depends on the quality and the quantity of the gold.
- You can use prepaid plus the charges of prepayment are levied.
- The bank gives up to RS 20 lakh.
- The repayment period is very flexible 3 -36 months. Though the client can pay with shorter period and apply for new loan.
SBI gold loan interest rate calculator
The state bank of India offers loan with flexible interest rates. Clients don’t have to back of due to the interest. We have some calculation which help you determine how much you can handle.
The amount and interest: the bank offers RS 20, 000 to RS 2,000,000, note the higher the loan the higher the EMI. The interest of the above amount offered is 10.25%. Note the payment period will depend on the age and when you picked the loan. Though it is from 3 to 36 months. Higher loans paid within short period don’t attract high interest.
Eligibility for good gold loan
Age: The bank checks the age of the borrower, if he/she is salaried or self-employed. They have to be 21 years.
The income of the applicant: ones income will determine the amount they can afford to pay back. The gold value also helps in getting the loan as the back can repay the loan using the gold by selling to the total value and pay the dept.