#FinancialBytes: All you need to know about personal gold loans
Taking a loan against gold can come in very handy in the times of need as a quick and hassle-free option compared to regular personal loans. Personal gold loans are one of the most preferred loan options as these require minimal documentation. Moreover, the interest rates are also more attractive compared to personal loans. Here's more on personal gold loans.
What exactly is a personal gold loan?
Loans provided by lenders against the security of the borrower's gold are called personal gold loans. Personal gold loans are also very easy to avail when compared to other loan offerings of banks or lenders. The main highlights of personal gold loans are quick approval and minimum documentation. Also, the borrower's gold provided as security is returned upon loan repayment.
Who all are eligible for personal gold loans?
Any person aged 18 or above is eligible. Individuals with a steady source of income can apply for the loan singly or also on a joint basis; however, no income proof is required. Applicants are required to provide identity and address proof.
The maximum and minimum amount of personal gold loan
The maximum and minimum amount of personal gold loan one can take varies from bank to bank. For example, in India, State Bank of India's Personal Gold Loans scheme is among the most popular options. Under this scheme of SBI, borrowers can avail a maximum loan of up to Rs. 20 lakh. The minimum amount of loan that can be taken is Rs. 20,000.
The repayment tenure; charges and fees
The repayment tenure might be different for every bank but it usually ranges between 12-36 months. Also, for personal gold loans, customers are charged 05% of the total loan amount as the processing fee. They should also pay the gold appraiser charges.
