You need money immediately and are afraid that it may take many days to get a loan from a bank or other financial institution and your work may get spoiled. In such a situation, you can take the help of gold loan. For this, you will have to mortgage your home jewellery or other gold items with the bank or other loan giving agency. After repaying the loan, you will get back the mortgaged jewellery. Not all types of gold can be mortgaged for gold loan. Most banks mortgage only jewellery. Its purity should be between 18 carats to 22 carats. For sbi gold loan, gold coins sold by banks along with gold jewellery are also accepted. To repay it, either EMI is fixed by the banks or a bullet repayment system of three months, six months or 12 months is fixed.
What is bullet repayment in gold loan?
Under the bullet repayment system, the entire loan including interest is repaid in one go and the pledged jewellery or gold is taken back. According to hdfc Bank's website, you do not need to repay the gold loan through monthly EMIs. After the loan term, you have to deposit a lump sum amount along with the interest of the entire loan. However, the loan interest is calculated on a monthly basis. The bullet repayment period is of three months, six months or a year.
muthoot has the highest interest rate, mahindra BANK' target='_blank' title='kotak mahindra-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra has the lowest
While taking a gold loan, it is important for you to know what is the rate of gold loan of which bank. mahindra BANK' target='_blank' title='kotak mahindra-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra charges the lowest fixed interest rate of 0.88 percent every month. On the other hand, muthoot Finance charges an interest rate of 22 percent per annum, although a rebate of two percent is given on monthly payment. gold loans with low interest rates include Central bank of india at 8.40 per cent to 9.50 per cent, UCO bank at 8.50 per cent, indian bank at 8.80-9 per cent, Federal bank at 8.9 per cent, Canara bank at 9 per cent and state bank at 9 per cent and above.
click and follow Indiaherald WhatsApp channel