You can get an instant gold loan anywhere in India if you need urgent cash. This is a secured loan you can get by pledging your gold ornaments or coins.
The gold that is pledged must be 18 to 24 karats in fineness. You can get up to 75% of the market value of the gold that you have pledged, depending on its quality. The paperwork is minimal, and the process is quicker than other loans.
A few companies that you can approach for an instant gold loan include:
Non-Banking Finance Companies (NBFCs)
These are financial organisations that provide almost all the services that banks offer. However, they don’t have banking licenses. Nevertheless, these registered businesses carry out lending activities per the rules of the RBI.
A few well-known NBFCs when it comes to providing gold loans are:
- Muthoot Finance: Muthoot Finance is one of the biggest names in gold financing. With about 4265 branches spread across India, they provide gold loans at interest rates starting at 11.9% p.a. The maximum payback period is 36 months, which can be extended with consent. A simple loan application procedure and minimum paperwork can help you get a loan of up to INR 1 crore within 5 minutes.
- Manappuram Gold: Another well-known name in gold financing is Manappuram Gold, with about 3200 locations across India. They have a variety of programmes for people of all income levels. The interest rate starts at 12% p.a., and they have a maximum payback period of 12 months (extendable with consent). The maximum loan amount you can get from Manappuram Gold is INR 1 crore (disbursed within 5 minutes).
Banks have public deposits that they use to provide loans to borrowers. With a banking license, banks are authorised to provide various financial services, including gold loans. They strictly adhere to the rules established by the RBI. The interest rates and terms might vary from one lender to the next when applying for an instant gold loan.
A few banks that you can approach to get a gold loan instantly include:
- Union Bank: Union Bank of India has a gold loan programme called the Union Gold Loan to help people in need gain access to instant money. The gold you pledge must be bought from a bank if you need to apply for an instant gold loan here. You can get INR 1800 for each gramme of 22-karat gold you pledge here. The total amount that can be borrowed is INR 20 lakhs. The interest rate is around 7% p.a. (MCLR + 2.65%) with 1% processing charges. The maximum payback period is 12 months.
- SBI: The most significant public sector bank with a sizeable branch network in India, SBI offers its gold loan programme for people who need instant cash. This program can help you get a maximum amount of INR 50 lakhs at an interest rate starting from 7.5% p.a. The maximum payback period is 36 months, and the processing charges come to 0.5% of the total loan amount.
- Kotak Mahindra: Its gold loan is available for one to four years if you have a pressing need for cash. You can pledge bank-minted coins (up to 50 g) and gold jewellery of 18 to 22 karat fineness. The maximum loan amount you can get is INR 25 lakh if you are a new customer. Existing customers are eligible for up to INR 50 lakhs. The interest rates start at 10.5% p.a. with processing charges of 2%.
- ICICI: The ICICI Bank also has its gold loan program with an approval procedure of 30 to 60 minutes. You can get an instant gold loan of up to INR 1 crore that you need to pay back within a year. The interest rates start at 10% p.a. with 1% processing fees. There are also documentation charges of INR 199.
- HDFC Bank: The Sampoorna Bharosa Gold Loan Program of HDFC is an excellent instant gold loan to apply for if you need urgent cash with minimum paperwork. The interest rate starts at 9.9% p.a. with processing fees of 1.5% (plus taxes). The maximum payback period is 24 months, and the minimum loan amount is INR 25,000 (INR 10,000 for rural residents).
- AXIS Bank: Axis Bank offers cheap gold loans at interest rates starting at 13% p.a. The maximum payback period is 36 months, and the total amount you can get is INR 25 lakhs. The processing charges total up to 1% of the loan amount. You can only pledge gold coins and jewellery sold to you by banks.
- Central Bank of India: You can borrow money equivalent to 50 grammes of gold against the Cent Personal Gold Loan program. You can get up to INR 1750 for every gramme of gold you pledge, depending on the quality. Interest rates start at 9.05% p.a., and the maximum payback period is 12 months. The processing charges total up to 0.5% of your loan amount.
- Federal Bank Gold Loan: You can get an instant gold loan up to INR 1.5 crores from Federal Bank, for interest rates as low as 8.5% p.a. The maximum payback period is 12 months, which is adjustable. You can choose to repay as a lump sum or in the form of an EMI. Only 22-karat gold ornaments are eligible for pledging.
Make sure your gold will be safe with the company before pledging it for an instant gold loan. Compare the interest rates, processing charges, repayment options, and other terms of the various lenders before you decide on one to get a gold loan instantly. If you need a personal loan without pledging gold, visit the website of Piramal Finance.