In times of financial need, a gold loan can be a quick and convenient way to access funds. You can pledge your gold ornaments or jewellery as security to get a loan from a bank or financial institution. Indian Bank is one such institution that offers gold loan products at competitive interest rates. This blog post will tell you the Indian Bank Gold Loan Interest Rate for various gold loan schemes and also other factors that might influence the rate you receive.
Types of Gold Loan offered by Indian Bank
Gold loans can be a lifesaver during unexpected financial needs. Indian Bank offers two main gold loan schemes to cater to your specific requirements. Let’s delve deeper into the features of each scheme:
1. Jewel Loan (Non-Priority)
- Type: Term Loan
- Ideal for: One-time expenses like medical bills, wedding costs, or home renovation.
Features:
- Loan amount: Indian Bank offers a wide range of loan amounts, typically up to Rs 35 Lakh under the bullet repayment method (full repayment at the end of the term). There’s no upper limit for the monthly repayment method.
- Repayment: This is a term loan with fixed monthly installments (EMI) spread over a chosen tenure. Under the bullet repayment method, you can choose a repayment period of up to 1 year and up to 35 months under the monthly repayment method.
- Eligibility:
- Indian citizen (age requirement might vary, usually 18 or 21 years)
- Possession of gold ornaments of adequate purity and value
2. OD against Gold Jewels
- Type: Overdraft Facility
- Ideal for: Ongoing expenses, unexpected needs, or managing working capital.
Features:
- Loan amount: Similar to the Jewel Loan, the OD limit is determined by the value of your pledged gold ornaments. It typically ranges between Rs 25,000 and Rs 10 Lakh.
- Repayment: This is a revolving credit facility. A credit line is sanctioned based on your gold’s value. You can withdraw funds as needed and repay them along with interest. Interest is only charged on the utilized amount, offering flexibility in managing cash flow.
- Eligibility: Same as the Jewel Loan scheme.
Indian Bank Gold Loan Interest Rate
The Indian Bank Gold Loan Interest Rate depends on the type of loan chosen and several other factors.
- Jewel Loan (Non-priority): Interest rates for this loan typically range between 8.80% and 9.80% per annum. Indian Bank may offer fixed or floating interest rates on this loan. A fixed-rate stays the same throughout the loan term, while a floating rate can fluctuate based on market conditions.
- OD against Gold Jewels: Interest rates on OD loans tend to be slightly higher than term loans. For this option, expect a range of 9.95% to 10.45% per annum. Similar to the Jewel Loan, this can be a fixed or floating-rate loan.
Additional Points to Consider:
- Processing Fees: Indian Bank might charge a processing fee of 0.50% of the loan amount to cover administrative costs.
- Loan Appraisal Charges: The bank may appoint an appraiser to determine the purity and value of your gold ornaments. There might be a separate fee associated with this appraisal.
- Gold Purity and Loan Value: The loan amount offered will depend on the weight and purity of your pledged gold ornaments. Indian Bank typically accepts gold ornaments of 18 karat and above.
- Repayment Options: Both schemes offer convenient repayment options through ECS (Electronic Clearing System) or standing order instructions.
Gold Loan Interest Rates Offered By Different Banks
Banks offer competitive interest rates on gold loans, making it a preferred choice for many borrowers. Currently, the interest rates for gold loans offered by different banks start at around 7.0% per annum. These rates are subject to change based on the bank’s policies, market conditions, and the specific gold loan scheme chosen by the borrower. Banks may also offer special promotional rates or schemes to attract new customers or to cater to specific borrower needs. Potential borrowers must compare the latest rates with other banks to ensure they get the best deal.
Also read, Canara Bank Gold Loan
Here is a table summarizing the gold loan interest rates for major Indian banks:
| Bank | Interest Rate (per annum) |
|---|---|
| State Bank of India (SBI) | Starting from 7.5% |
| HDFC Bank | Starting from 9% |
| ICICI Bank | Starting from 9% |
| Axis Bank | Starting from 10% |
How to apply for Indian Bank Gold Loan
Application Process:
- Online Application: Indian Bank might offer an online application process for gold loans. Check their website for details and eligibility requirements.
- Branch Visit: You can visit your nearest Indian Bank branch to initiate the gold loan application process.
Documents Required:
- Completed Application Form: The application form, typically available at the branch or online, will request your details, loan purpose, and desired loan amount.
- KYC Documents:
- Identity Proof: Passport, Voter ID card, Driving License (any one)
- Address Proof: Utility bills (electricity, water, phone), Aadhar card, rental agreement. (anyone)
- Gold Ornament Details: An inventory listing the weight, purity, and description of the gold ornaments you intend to pledge.
- Two Passport-Sized Photographs: Recent photographs of yourself.
Additional Documents (if applicable):
- Land Documents (for High-Value Loans): If you’re applying for a high-value loan, the bank might ask for land ownership documents as additional security.
- Income Proof (for specific scenarios): In some cases, especially if your credit history is considered, the bank may ask for income proof documents like salary slips or bank statements.
Conclusion
Gold loans from Indian Bank can be a viable option for getting funds quickly, especially if you have gold jewellery to use as collateral. This blog post provided a general overview of the interest rates, loan types, and other factors to consider.
For the most up-to-date interest rates and specific details on loan schemes, it’s advisable to visit the official website of the Indian Bank or contact their customer service representatives.
Frequently Asked Questions (FAQs)
The interest rate for a Jewel Loan (Non-Priority) from Indian Bank typically ranges between 8.80% and 9.80% per annum. The rate can be fixed or floating, depending on the specific loan scheme chosen by the borrower.
Indian Bank offers two main gold loan schemes:
– Jewel Loan (Non-Priority): A term loan ideal for one-time expenses like medical bills, wedding costs, or home renovation.
– OD against Gold Jewels: An overdraft facility suitable for ongoing expenses, unexpected needs, or managing working capital.
The loan amount is determined based on the value and purity of the pledged gold ornaments. Indian Bank typically accepts gold ornaments of 18 karat and above. The loan amount can range up to Rs 35 Lakh under the bullet repayment method for Jewel Loans, with no upper limit for the monthly repayment method.
The interest rate for an OD against Gold Jewels from Indian Bank ranges between 9.95% and 10.45% per annum. This rate can be fixed or floating, depending on the terms of the overdraft facility.
Yes, Indian Bank may charge a processing fee of 0.50% of the loan amount.
The repayment tenure for a Jewel Loan (Non-Priority) from Indian Bank varies based on the chosen method:
– Bullet Repayment Method: Up to 1 year.
– Monthly Repayment Method: Up to 35 months.
An OD against Gold Jewels is a revolving credit facility, so repayment is flexible. Interest is only charged on the utilized amount, and borrowers can withdraw and repay funds as needed.
Yes, you can negotiate the interest rate on your Indian Bank gold loan, especially if you have a good credit score and an existing relationship with the bank.
