5 Gold Loan Schemes By State Bank Of India

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A loan against gold by SBI or State Bank of India can be used for many purposes. People usually utilize it for personal expenses and cannot take it for speculative and illegal purposes. The SBI gold loan can be taken for sponsoring travel, debt consolidation, big-ticket purchase, medical treatment, education, wedding etc. You can borrow between Rs. 20,000 and Rs. 20 lakhs depending on the weight and purity of the gold jewelry. The ornaments should weigh at least 15 grams. In case of bank-purchased gold coins, these should not weigh more than 50 grams. 

The tenure of the loan is between 3 months and 36 months. The tenure may however depend on the loan amount needed, interest rate, etc. The gold loan is quick to be processed and can help you to meet any emergency financial requirement, without hassles. Remember, the bank can reject the loan application, if you had previously defaulted at loans with it. 

Below given are details of the popular SBI gold loan schemes. 

1. State Bank Of India Gold Loan 

One of the top providers of gold loans, SBI accounts as an ideal choice as it offers low interest rates. Presently, the bank charges 10.25% on jewelry loans for regular customers. Rs. 250 is the processing fee (minimum) for the loan, while the maximum process fee can be up to 0.5% of the total loan amount. There are no foreclosure or prepayment charges applicable however if you delay or default at payments, then penalty charges will be applied. 

You can get a loan up to Rs. 20 lakhs. As an applicant, you must be over 21 years of age to apply for the loan. You have to submit both PAN card and Aadhar card for residence and identity proof. You must produce a proof of local address, without which the loan cannot be processed. You will not have to submit proof of income tax return, credit report, employment, or income. If the loan amount is high, then SBI can run a credit check. 

Do provide recent passport-sized photographs of yourself and duly filled and signed loan form when applying for this loan. 

2. Loan For Agriculture And Related Activities 

The State Bank of India is a banking and financial services provider, which has gained an immense reputation in India, since the time it started operating in the country. The bank also has several gold loan schemes for farmers and agriculturists. As agriculture is backbone of the country, giving it impetus is important. Gold loan amount for agriculture starts at Rs. 10,000. Personal loans and business loans are some of the other borrowing options that farmers can utilize, but loans against gold are cheaper and quicker to avail. 

Agri-financing by SBI is one of the innovative schemes under gold loan. It comes with facilities such as low interest rates, no hidden costs, no intermediaries, quick loan sanction, and disbursement. The borrower must submit proof of the farming allied activities to obtain the funds. The bank offers loans for production of crops. The loan also covers related costs, such as those for post-harvest, fertilizers etc. 

Additionally, the State Bank also gives special loans for the purchase of machinery and vehicles such as tractors, Combined Harvesters, Power Tillers etc. The bank provides loans for allied activities such as dairy, fisheries, poultry etc. 

3. Special Facilities For Women Customers 

Females who wish to start a business of their own or a group of women who have a small-sized firm can take benefit from the discounted gold loan rates by SBI. The loan against gold for women has flexible terms and conditions and an initiative towards supporting females and their dreams to entrepreneurship. Women from rural areas can undertake agricultural activities or other businesses by taking a jewel loan and receive 1 to 2 percent discount on the interest rate. 

4. SBI Online Gold Loan 

If you wish to apply for a gold loan online, then you can consider the State Bank of India. It is easy to drop your loan application on the official website of SBI. Just fill the necessary information, upload the required documents, and apply. The customer care team will revert shortly to understand your requirement. You will have to go to the nearest branch office for gold valuation, after which if the loan is approved, then the bank will transfer the loan amount the same-day, to your bank account. 

If you are an existing member of SBI, you can even apply for the online loan against gold from your bank savings or other type of bank accounts. It is simpler to keep track of your loan application and balance amount through your online SBI account for gold loan. 

5. Loan Against Gold SBI For Existing Customers 

If you already have an account with the State Bank, then it will be easier for you to get a gold loan. Existing customers may not have to submit any additional documents, as the bank already has the necessary information with it. You may only have to submit the gold for valuation and then have the loan amount transferred to your bank account. Loyal customers can also receive discount on the interest rate. 

Above-mentioned are some of the State Bank gold loan schemes, which you can lookout for in order to fulfill your financial needs. Use them to help fund your personal finances or business requirements if necessary. 

I hope you enjoyed this article about gold loan options from the State Bank Of India.

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