Yes, you can avail a gold loan against gold coins. Maximum limit of 50 gm per customer will be applicable.
Banks are allowed to offer loan against gold ornaments and other jewellery and specially-minted gold coins sold by banks. However, they cannot lend for purchase of gold in any form. Banking analysts say that banks have been giving gold loans in the small-ticket category against jewellery.
Only wearable gold ornaments from 18 to 22 karat and only bank minted coins (24 Karat) upto 50 gms per customer can be pledged.
Therefore, in India, creditors prefer to take gold ornaments as collateral. Banks neither accept gold bars nor gold bullion for gold loan. You can avail gold loan against gold coins but they must be 99.99% pure with weight not exceeding 50 grams.
In case you take a gold loan against 24 carat gold coins, they should have been issued by banks. If you have gold coins from a jewelry shop, they are not considered. The weight of the gold coin(s) cannot exceed 50 grams per customer as per RBI policy.
Both Union Bank customers as well as non customers can purchase Gold Coins from our branches. Union Bank customer can buy gold coins by issue of cheque from their accounts or provide a debit instruction. Non-customers can deposit cash for purchase of Gold Coins if the value is less than Rs. 50,000/-.
Central banks are among the largest buyers of gold, and yet it's very rare for customers to be able to buy gold at banks. In fact, it's unusual for typical banks to sell any precious metals. And even when they do, their selection is limited.
Instead of selling to a pawn shop or local jewelry store, it's best to sell to a trusted and reliable gold buyer. These vendors offer competitive prices and will buy your gold coins based on their market value. We've listed the best places to sell gold coins, both online and in your local area, in the section below.
MYTH 4: Traditional jewellery is not accepted
But who defines modern jewellery or modern design? The rules and regulations on gold loans don't. So let us be clear: banks do offer loans on old gold ornaments, they only look for the purity of the pledged gold, which has to be of at least 18 karat standard.
Gold & Precious Metals Collateral Loans
Types accepted as collateral include but are not limited to – gold, silver, platinum or palladium bullion, and gold or silver coins.
Don't pledge gold with jewellers as they may not be very trustworthy. Gold loans are a short term facility, normally for a period of up to 12 months. It has to be repaid after that period. You can approach your bank to extend the period of the loan for another 1 year based on mutually agreeable terms and conditions.
Pledging gold as collateral to meet financial needs has been an constant feature of the Indian gold market. Traditionally, households use gold loans to meet costs of health, education and marriage, while small businesses use them for their working capital needs.
Gold loans can be availed even if you are unemployed and have no banking or income statement. However, you must own gold in the form of jewellery with purity marks above 18 carats.
Because Tuesday is ruled by Mars, as per astrology, it is a very inauspicious day to borrow money. This is because it is believed that the repayment of loans or debts taken on a Tuesday take ages to repay the same.
You can also exchange your Digital Gold at any point on Tanishq.co.in or across 350+ Tanishq stores pan-India.
The current value of a 1 oz Gold American Eagle coin (which contains 31.104 grams of pure gold) is between $1800-$2100 , while the value of one ounce of pure gold is currently around $1960.
The bottom line is that there's rarely been a better time to sell your gold coins, but it's vital to get some trusted, expert advice about their value before you sell. So do your research, get a few appraisals and weigh your offers.
As per the Reserve Bank of India's (RBI) directive, banks cannot buy gold coins. Even if you buy or have already bought gold from a bank, you will not be able to sell it back to them.
Currently gold coins can be sold to any jewellery retailer in return for jewellery or cash. There are a lot of other gold investment options available for you to invest in like gold bars, gold bullions and other investment options.
Gold coins - These are popular investment options as gold coins are very much used either for gifting or for storage. They can even be used in future to create gold jewelry. They come in multiple types depending on the weight.
Unlike stocks and bonds, a purchase of gold is not an investment in company growth. You won't get dividends or interest from tangible gold. You may have to wait years for gold to go up in value.
The business model of Tanishq is predominantly around 'making charge' levied over cost of gold. It varies from 8.5% (on coins) to as high as 35% of the value of gold (on ornaments like necklace or bangles).
22K gold is preferred in case of jewellery. It is because 24K gold is malleable in its pure state and jewellery made with this kind of gold will break easily. Thus, most people prefer 22K over 24K gold as it also helps them to get better value when sold.