Gold Loan - Interest Rate & Process | Hindi - YouTube

Subscribe to Asset yogi channel and press the bell icon

Be the first to watch the latest Finance videos

Namaskar, My name is Mukul, and welcome to Asset Yogi.

Where we unlock the knowledge of finance.

In this video, we are going to talk about Gold Loan.

We can find gold in everyone's home in India.

And we are also slightly emotional towards that,

We consider gold in India that it comes in handy only in bad times.

but we do not realize that, many times we take personal loans.

then there is a lot of debt on our credit card Loans.

Personal loan and Credit cards are much more expensive than gold loans

And if we can utilize gold if you want you can also take a gold loan.

I am not saying that you should always take a gold loan,

It depends on what your requirements are.

I always say that home loans are the cheapest loan

If you are buying a property then definitely go for a home loan.

There can be different types of requirements

But if you have any personal requirements

then you can definitely go for a Gold loan.

In this video, we will see all these things in little detail.

like, In what situations you should take a gold loan.

What are the eligibility requirements for the same?

What documents are required?

How much interest rate is charged?

what is the procedure of loan repayment?

or what is the duration of the loan?

Some people also have fears that the jewelry or gold coins

they pledge to anyone or any company or bank.

They worry about its safety

So we will see all these things in a little detail in this video.

So you must be in this video from the beginning till the end

So that you can know all the important features of gold loan.

And if you want to take a Gold loan Next time

So you can take a Gold loan without any fear

So let's see what are the benefits of taking a gold loan.

In what kind of situation should you take a gold loan?

If you have any short term fund requirements ?

Suppose you need money for a year or 2 then

definitely you can go with a gold loan

You get a gold loan for a maximum of 3 to 4 years

Gold loan is not available for huge amounts.

So if you want to buy a property, want to invest money in any business,

you should take a home loan or take a loan against a property

If you have a very small requirement,

Suppose, if there is an emergency requirement in your business

then definitely you can go with a gold loan

Then second, in India, there is some emotional attachment with gold.

We feel here that if we sell our gold then we are bankrupt.

So definitely, if you take a gold loan

then you will not have to sell your gold

So this is also a good way

Instead of selling gold, you take a loan against it

And you can get your gold back as soon as you repay your loan.

Then the third advantage is that even if your credit score is low.

like we use CIBIL score in India

If your CIBIL score is low due to any reason

You still you get a gold loan

in fact, if you take a gold loan and make all your payment on time

So then you can also improve your credit score

Your CIBIL Score will increase slightly

So gold loan is also a source to repair your credit scores.

A gold loan is a secure loan.

So whatever gold ornaments, bars, and gold coins

you have will be pledged as security.

So whatever gold you have,

whether it's NBFC (non-banking financial corporation)

or any bank.

You have to mortgage your gold with them

And when you repay your entire loan,

then the gold will be returned to you.

And if by chance you default the loan,

then in that case the bank can also put your gold for auction.

Bank will give you prior notice.

But if you are not able to repay your loan on time even after being given notice.

then your gold will be auctioned and the bank will recover the loan amount through the auction.

Now let's talk about Purpose

So if you want to take any personal loan

You can take a gold loan for all the purposes of a personal loan.

for example, If you want to do renovation in your house,

A wedding takes place in your house,

or if there is any medical emergency or

you need loan for your Small business,

or you have to fund education to someone,

Or want to buy a any home appliance

or want go on a vacation, etc.

So. definitively gold loan can come in handy

You can take a gold loan if there is any personal requirement

Because a gold loan is a bit cheaper

So as I have also written here that interest rate is much cheaper

than personal loans and credit cards.

Personal loans and credit cards are the most expensive loans

Credit card is the most expensive debt.

Their interest rates are very high

So if we talk about the Exact interest rate,

banks give a little less rate on your gold loan interest.

So in banks, the interest rate of a gold loan is more than 2-6 percent

as compared to home loans.

So if we talk about a home loan, for example

If you are getting Home Loan from 8.5 percent

If we talk about today's rate,

then you will get a gold loan, Lets say

around 10.5 to 15% in banks.

And in NBFC (Non banking Financial companies)

they give you a little bit more interest rate,

it is 5 to 10 percent more than other options,

in this case,

you will get around 13 to 18 interest rate

it depends like if your profile is very good,

your salary is good , your income comes on time.

If you do not have a lot of debt,

do not have many liabilities,

then you get a gold loan at the lowest interest rate. whether it's bank or NBFC

If we talk about banks or NBFC then disbursement becomes very fast.

In the case of NBFC, your disbursement starts on day 1

i.e. on the day you apply you will get the loan.

In the case of bank you will get a loan in a maximum of 2 to 3 days

this is also an advantage of gold loan in that it does not take much time.

Now let's talk about Processing fees

The processing fee ranges from 0.5 to 1% of the loan amount,

it may vary from bank to bank

So you can negotiate,

and then you try to pay the processing fee as minimum as possible

which can be minimum 0.5 percent or less

The tenure can vary from 3 months to 4 years.

NBFC's generally give you loans for a short tenure,

NBFC gives short period loans ,

maximum of 3 months, 6 months, or 1 year

And banks give loans for the longest time.

So you get a loan for 3 to 4 years, through the bank

If we talk about eligibility,

then your age should be more than 18 years to take a gold loan.

Your repayment capacity is seen whether you have any steady source of income or not

Income proofs are not required,

but the bank definitely likes to see a steady source of income

and your profile gets better accordingly.

Because if they do not see your income proof or your steady source of income,

then they can increase your interest rate,

and you will get a loan at a higher interest rate.

Now we are talking about valuation

and how much maximum loan amount you get.

Firstly whenever your gold is a pledge with any bank or NBFC

It should be 18 to 24-carat gold, there should not be an impurity.

All the stones attached to it are removed,

their weight is subtracted,

then no value of the stones is applied,

after that the making and impurity charges are subtracted.

If your gold is not 24-carat gold,

then impurity is subtracted along with making charges,

and then your 20 to 30 % of the purchase amount is deducted.

Then the loan to value ratio is applied

for example,

if your total purchase amount is 2 lakh,

whatever your gold ornaments, you had purchased it for two lakhs,

then 20 to 30 percent of it will be deducted from the purchased amount

So in this, if we assume a 25% average

So here your Gold value will reach 1.5 lakhs,

So the actual value of gold will be 1.5 lakhs,

after that Even for this 1.5 lakh, more 25% will be deducted,

then you will get a loan of about one lakh only.

The maximum you get a loan of 50 to 60 percent of purchase amount only,

So suppose if you had bought total gold of Rs. 2 Lakh,

you will get an approved loan of maximum

1 lakh to 1.2 lakh only,

Bank will not give more loan than this.

Because making and impurity charges will be deducted

After that there is a loan to value ratio,

the bank keeps a margin of its own.

The bank never gives you the full amount loan

Then there is also a minimum and maximum limit in every bank

and also within NBFC's

For example, if we talk about today's rate

Axis bank gives you loans from Rs. 25,000 to Rs. 20 lakhs

SBI gives you loans from Rs,20,000 to Rs.20 lakhs.

And if we talk about NBFC's,

In some cases NBFC even gives loans around Rs. 1.5 crores.

For which you will definitely have to give more documents

And will have to compliance

So if you want a lot of gold loan then you have to go to NBFC.

but if you want a loan of fewer than 20 lakhs

So you can go to the banks.

Now let's talk about Loan Repayment.

There are 2 options in loan repayment.

In the first option, you can only pay interest on a monthly basis.

So you don't need to pay the principal amount

you will have to pay the Principal amount as soon as the loan tenure ends

For example, if you have a loan of RS. 2 lakhs for 3 years,

then you can pay the principal amount even after 3 years,

but you have to pay interest monthly.

The second option is EMI.

In which you keep paying EMI Monthly,

within which both your principal amount and interest are deducted,

which you pay EMI monthly, and the amount is quite high than the first option

So if you want to pay less money monthly,

then you can just pay interest and for option 1 And

if you think that after the loan tenure, you will get money,

then you can take the option of paying monthly interest,

otherwise, if you can pay the money regularly every month,

then you can use this EMI option.

Let's take a look at it,

Suppose you have taken a loan of two lakhs,

interest is being charged at 13% for 3 years loan.

So you will have to pay interest of Rs. 2167.

So in this, you have to pay a little less amount.

But if you go with EMI then you will get an amount of around Rs.6739.

The total interest that you will get in this option

for 3 years is about Rs.42,596.

So You have to pay the total interest of Rs.42596.

So you can see that if you go with interest

then you get a less monthly amount

but after 3 years you have to pay these two lakhs all at once.

And if you pay EMI,

then the monthly cost is a bit high, Rs. 6739. has to be paid.

Almost 3 times more than the interest amount we will pay.

But you will also be paying the principal amount simultaneously,

you will not have to go out together to pay the principal amount.

Whichever of the two suits you, you can go with that option.

Then there are no prepayment charges

Most banks or NBFC's do not apply prepayment charges.

so whenever you have the money

you can pay the loan amount

It does not have any charges separately

Then many people have the issue of safety In today's date,

there is a lot of security surveillance are done.

The gold is kept well,

the Gold is kept in vaults.

Electronic surveillance is installed for the safer side

Still, if something like theft happens, then you get Insurance on your Gold

The full value of Purchased gold

So we can say that there is really good security in banks as well as in NBFCs.

So there is nothing to worry about whether your gold is safe or not.

Now let's talk about documents.

The list of required documents is very less,

this is also an advantage of a gold loan

So you have to submit an application form along with

two passport size photographs, ID proof and address proof.

that's it

Income documents are not required in gold loan

This is a huge advantage as all other loans require your income documents as well.

So if you want a quick loan,

And if you do not have your income document,

then you can definitely go with a gold loan.

your credit score is not even checked,

In such cases gold loan can be very helpful for you.

If you like this video please press the like icon below

And do share it with your family members and friends

so that they can also get the benefit of this video

if you have any suggestions or you want to give any feedback

Regarding this video or this channel then

you can comment below,

you can also suggest other topics for future videos,

I read all your comments regularly.

So tell me by commenting which other topics should I cover for you

And if you have not subscribed to this channel yet,

then please subscribe to this channel

and press the bell icon on your phone, Because

I keep coming every day with similar informative finance related videos,

See you in the next video.

Till then keep learning, keep earning, and be happy as always.