The HDFC bank is a prominent loan provider in India. It offers both secured and unsecured loans. If a customer wants a loan against gold jewelry or coin from this bank, he/she can pledge a gold asset as collateral and avail the required funds.
This kind of loan is quick and hassle-free. One can apply for it and receive the loan amount within a few minutes. The interest rate for HDFC Gold Loan is as low as 10.50% to 11.91%, making it pocket-friendly and affordable for commoners.
The gold one pledges should be not lower than 18-carat purity, it can be up to 24 carats.
Why HDFC Gold Loan is Inexpensive and Convenient?
1. Quickest Disbursal, No Wastage of Time and Resources
With gold loans, the bank allows a person to capitalize on the idle gold assets for cash. The Sampoorna Bharosa gold loan by the bank helps people to make the most of the gold they have. Complete security is given to the ornaments and coins.
An individual can expect a 3-way sealing for the asset, which is secured in the safety vault of the bank.
It is possible to get a loan disbursement within 45 minutes to 2 hours after the institution evaluates the gold. The tenure and pricing of the loan depend on the financial situation and budget of the borrower.
2. Get up to 75 Percent of the Gold’s Value
Gold coins up to 50 grams are acceptable. Gold content in jewelry must not be less than 15 grams. The processing fee is only 1.5% of the loan amount.
Maximum loan to value ratio is 75% of the gold’s value as per calculation on the current date. Thus, a person can expect best loan amount from HDFC, against gold ornaments.
Farmers can also apply for this loan to get monetary support for allied farming activities, but the proof for the same must be furnished to the bank.
3. Maximum Loan Amount and Flexible EMI Schemes
Special schemes are available for existing customers, women, and agriculturists. Existing customers may get the loan within seconds on applying online for the funds. One can borrow between Rs. 50,000 and Rs. 50 lakhs.
The loan amount can be increased, depending on the applicant’s financial condition, gold purity and weight.
Prepayment charge is only applicable if the loan is closed in the initial 3 months.
This fee is 2 percent of the loan amount. EMI schemes are flexible. The borrower can choose overdraft scheme, regular EMI scheme, or bullet repayment scheme.
4. Overdraft Scheme is Available
The bank offers an overdraft facility, where the borrower can withdraw funds against gold or deposit surplus amount, during the loan tenure.
The person has to pay interest amount on the credit used. The interest rate is floating. Such loan is primarily provided to salaried and self-employed individuals, who earn yearly bonuses.
There are no prepayment penalties and lock-in periods. The scheme can be renewed after payment of applicable processing fees.
5. Multipurpose Loan
As a loan against gold is based on a movable asset like gold coin or jewelry, customers with no credit history can also get funds for any emergency or business/personal expenses, such as a wedding, medical treatment, home repair, purchasing equipments for the workplace, debt consolidation, big-ticket purchase, education etc.
It is easy to get the loan approved because the eligibility criteria are simple and almost every Indian citizen will be eligible for a gold loan.
6. Save on Interest Payout
Gold loan by HDFC is inexpensive when compared to unsecured personal loans and other short-term loans. As the tenure of the loan is 3 months to 24 months, the borrower does not have to bear the burden of paying greater interest amount.
The longer the tenure more is the interest component of the loan, but with a loan against gold, one can repay the amount in short-time, and save any additional interest payout.
7. Easy Eligibility Criteria and Documentation
A person who wants to avail a gold loan from the HDFC bank must be at least 21 years of age, at the time of the loan application.
The loan amount cannot be utilized for speculative purposes such as capital market investment, illegal acts, purchase of gold etc. Documentation is also straightforward.
The applicant has to submit Aadhar Card and PAN card as identity proof and residence proof, along with the duly filled and signed application form and 2 to 3 passport-size photographs.
In case the applicant cannot produce proof of local residents, then the loan may be declined.
How to Apply or a Gold Loan at HDFC Bank
Below given are the steps to follow to apply for HDFC Bank gold loan:
- One can even visit the nearest bank branch of HDFC and get all information of the gold loan schemes. The person must carry the original and Xerox copy of the documents needed and passport-size photographs. After filling and signing the application form, it must be submitted in the bank.
- The gold ornaments/coins must also be brought in the bank for evaluation. After verification of the documents and gold evaluation, the funds will be disbursed to the bank account of the borrower.
- To apply for HDFC gold loan online, the applicant must visit the official website of the bank. After filling the form and submitting required documents, the application form will go for further processing.
- Any intimation and communication required will be carried on by the bank’s representative. The above-given information about HDFC Bank gold loan will help one understand the different gold loan schemes, and why these are budget-friendly for customers.