A home loan top up interest rate is cheaper than a gold or personal loan. This is because a top up loan interest rate is only 0.5% to 1% higher than home loan interest rates.
Banks, NBFCs, and Housing Finance Companies (HFCs) provide Home Loans to customers at affordable interest rates. The most important thing that makes Home Loan one of the cheapest loans in India is its affordable interest rates.
SBI Bank Gold Loan is most popular for agriculture loan on gold as it offers the lowest interest rate on agricultural gold loan starting at 7.50%. Gold Loan interest rate in State Bank of India for regular borrowers is higher than the rate offered by the bank on loans for agricultural purposes.
The interested customers must note that the SBI Gold Loan can be availed by pledge of gold ornaments including gold coins sold by banks with minimum paper work and low interest rate. 2) The interest rate is as low as 7.30 per cent p.a.
Not checking creditor's credibility: A gold loan is a secured loan, which implies that it is protected by collateral (gold in this case). This collateral remains with the creditor or lender till the loan amount is completely paid off. ... This is a good way to provide security to a creditor but what about the borrower.
Documents Required for Gold Loan
A PAN card is not a mandatory document to apply for a gold loan. ... Identity proof document (any one)- PAN card, Passport, Driving License, Voter's ID.
Since the gold has been pledged as collateral against the loan, failure to repay (three consecutive payments or more) will ultimately lead to the gold being auctioned off by the bank or the financial institution. This is now a non-performing asset and will be sold off for recovery.
MCLR stands for Marginal Cost of Fund based Lending Rate. MCLR rate is the internal benchmark rate used by banks to fix the interest rate on floating rate loans. Starting from 1st April 2016, all banks in India are required to benchmark and price their loans to MCLR.
Typically Gold Loan maximum tenure for repayment is 24 months in case of long-term loans repaid in EMIs, and six months in case of short-term loans repaid in a lump sum. If you opt for monthly instalments, you can repay the loan in a maximum of 24 payments.
Here taking a salary as ₹ 35k, & without any fixed monthly obligation, you can pay a maximum of ₹ 17,500 as EMI considering 50% FOIR. If the interest rate is 10% per annum, the loan amount eligibility can be arrived at ₹ 20,46,586 using a home loan eligibility calculator (assuming 3 household members).
25,000, you can avail as much as Rs. 18.64 lakh as a loan to purchase a home worth Rs. 40 lakh (provided you have no existing financial obligations.)