State Bank of India (SBI) offers gold loan facility to any individual (singly or jointly) who has a steady source of income and is above 18 years of age. This type of loan can be availed by pledging of gold ornaments including gold coins sold by banks.
Bank’s employees and pensioners are not required to produce any proof of income while taking a gold loan.
Here are key things to know before taking the gold loan from SBI:
Application for a gold loan with two copies of photographs, proof of identity with proof of address, and witness letter in case of illiterate borrowers are required for availing gold loan from SBI.
Loan amount limits
The minimum loan amount one can take is Rs 20,000 and the maximum is Rs 50 lakh, according to SBI.
The security here is a pledge of gold ornaments duly verified for quality and quantity.
The processing fees include 0.25 percent of the loan amount and applicable GST (which is minimum Rs 250). Gold appraiser charges are also required to be paid by the applicant.
For any loan amount, 0.50 percent above the MCLR-1 year is applicable.
The repayment of principal and interest will be commenced from the month following the month of disbursement in case of a gold loan.
For liquid gold loan, the overdraft account with transaction facility and monthly interest is to be served.
The maximum repayment period for the gold loan and the liquid gold loan is 36 months. For a bullet repayment gold loan, it is 12 months.
(Edited by : Jomy)