What is a Gold Loan?
A gold loan is a type of loan where you give your gold jewelry or ornaments as a guarantee to borrow money from a bank or lender. The amount you can borrow depends on the value of the gold you pledge.
The best part is that gold loans have a quick approval process, and you can repay the loan in easy monthly installments, or as per the terms agreed upon with the lender. It’s a great option for urgent financial needs like medical emergencies, business expenses, education fees, or home improvement
Benefits of a Gold Loan
1. Quick Processing
Gold loans are approved and disbursed faster compared to other loans, often within a few hours, making them a reliable option for emergencies.
2. High Loan-to-Value (LTV) Ratio
Most lenders offer a high LTV ratio, allowing you to borrow up to 75-90% of the gold’s current market value.
3. No Credit Score Requirement
Unlike other loans, a gold loan doesn’t depend on your credit score, making it accessible even for those with limited credit history.
4. Flexible Repayment Options
Lenders offer various repayment plans, such as paying only the interest during the loan tenure and repaying the principal at the end.
5. Lower Interest Rates
Gold loans are secured loans, so they generally come with lower interest rates compared to unsecured loans like personal loans.
6. Retain Ownership of Gold
While your gold is pledged as collateral, you retain its ownership and get it back upon full repayment of the loan.
LoanPe Gold Loan
LoanPe Gold Loan Highlights | |
Interest rate | 9.05%-10.20% p.a. |
Collateral | Pledge of gold ornaments |
Loan Amount | Up to Rs 50 lakhs |
Loan Tenure | Up to 3 years |
Gold Loan Repayment Facility | Demand Loan & Bullet Repayment Facility |
Processing Fees | Up to 0.50% of the loan amount |
LoanPe Gold Loan Interest Rate
loanpe Gold Loan interest rates start at 9.05% p.a. State Bank of India offers gold loan interest rates based on the types of Gold Loan schemes stated below:
Scheme | Interest Rates (p.a.) |
Gold Loan EMI Based | 10.20% |
3 Months Bullet Repayment Gold Loan | 9.05% |
6 Months Bullet Repayment Gold Loan | 9.20% |
12 Months Bullet Repayment Gold Loan | 9.45% |
LoanPe Gold Loan Fees & Charges
Processing Fees
Particulars | Charges |
3 Months Bullet Repayment Gold Loan | Rs 200 |
6 Months Bullet Repayment Gold Loan | Rs 300 |
12 Months Bullet Repayment Gold Loan | 0.50% of the loan amount (Minimum Rs 500; Maximum Rs 10,000) |
EMI based Gold Loan | 0.50% of the loan amount (Minimum Rs 500) |
Why Choose a Gold Loan?
A gold loan is a great option because it’s easy to get and flexible. The approval process is fast, interest rates are lower compared to other loans, and you don’t need a perfect credit score to qualify.
It’s perfect for situations like medical emergencies, education expenses, or business needs. With a gold loan, you can get the money you need quickly and repay it easily, without putting your financial stability at risk.
