The Bank of India (SBI) is offering personal gold loans. Under this, customers can take a loan of up to 20 lakh rupees in exchange for gold. SBI has told that customers will have to do minimum paperwork for this and a gold loan can be taken from the bank by pledging gold ornaments including gold coins sold by banks with low-interest rates. On this, you will have to pay 7.75 percent annual interest, which is much less if compared to a personal loan.
Who can take a loan?
All persons above 18 years of age can apply for personal gold loan from SBI. Individuals can apply on a single or joint basis, although they must have a stable source of income for this. You do not need to provide proof of income for the loan. SBI charges 0.50% of the loan amount and a minimum of 500 rupees (GST applicable to both) as processing fees for gold loans.
Repayment of a loan in 36 months
SBI has a different payback period for different schemes. The repayment of the principal and interest of the gold loan will start from the month of disbursement. Under this, a loan can be taken for a maximum of 20 lakhs. The minimum loan amount is 20000 rupees. The transaction facility for liquid gold loan and overdraft with monthly interest is decided according to the account.
How to apply
The following documents are required when applying for a gold loan. The process of sanctioning loan and disbursement of funds is very simple.
1. Two photos, along with the application form for gold loan in duplicate. 2. Proof of address along with proof of identity 3. Witness letter in the case of debtors who are illiterate.
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