Gold is an essential commodity that makes its presence in every household. Even a below poverty line family will have a small amount of gold with the. Gold in the form of jewelry, coins, bullions is purchased with more than one reason. Gold is a vital asset, that when well managed can make your future a lot safer. In the emergency situations, gold comes as a direct source of instant cash. Thanks to plenty of loan lenders who are ready to keep your gold for the cash you get.
Gold is a best borrowing option when you need instant cash. Gold in all its physical forms may it be jewelry, gold coins, gold bars or gold bullions or exchangeable for cash in the form of gold loan. Based on the purity of gold they are classified into 22 ct, 18 ct, 14 ct or 9 ct. the value of the gold loan is calculated with the amount of gold and quality of gold you bring for loan. The sanctioned loan is therefore based on the quality and quantity of gold. Gold loan should be revived as soon as possible, if not they should be redeemed and again mortgaged for cash. Mortgaging can be done on the next day itself of redeeming itself. This will save your gold to be kept in safety of the banks. One more thing to keep in mind is that the gold that has been mortgaged shall be liable for auctioning if gold is not redeemed with the loan amount and interest rates. Usually the loan receiver will be given time period which he should pay back the loan amount. If the loan period is complete and even after 3 years, he is not able to pay back the loan amount, the bank will place the gold for auction.
Gold Loan In Nationalized Banks
Banks such as Industrial Credit and Investment Corporation of India Bank, State Bank of India, International Netherlands Group Vysya bank and Canara bank are a few nationalized banks that offer gold loans. Industrial credit and Investment Corporation of India bank provide gold loans at Interest rates of 14 to 15%. State Bank of India provides the gold loan at an interest rate that varies from 13.75 to 14.25%. International Netherlands Group Vysya bank provides the gold loan at interest rates of 13% and Canara bank offers the same as a flat interest of 14%. There are many cooperative banks that offer gold loan, for example T he Tamil Nadu State Apex Co-Operative Bank (TNSC Bank) charges 14% interest for these loans. You may visit bank bazaar that gives thorough details on banks, their gold loan plans, loan interest rates so that you can easily compare the loan specifications before considering applying for the loan. There are other private finance lenders and finance institutions that are involved in offering loan against gold. But the interest rates are severely higher in their institutions. And the interest rates are liable to increase after 3 months.