A gold loan, also known as a loan against gold, is a secured loan that the borrower obtains from the lender in exchange for pledging certain gold items as security.Your gold is used as collateral by the bank for the loan's duration. The bank takes the gold inside a range of 18-24 carats as security.This article will help you to understand better about the
gold loans provided by HDFC
and serve you to decide which gold loan to choose from different options that are available.
With HDFC you get various benefits while taking Gold Loans. Let's have a look at them.
Very Little Documentation,
A straightforward KYC-based documentation procedure is used by HDFC Bank. Just relevant papers, such as confirmation of your identification and residence, need to be submitted. Your credit ratings and paperwork proving your income are not required.
Fee Waiver For Loan Foreclosure,
It should be noted that after three months, HDFC Bank does not impose any fees for loan foreclosure. You won't be subject to any prepayment penalties as a result, and you may pay off your loan in full at any moment after the first three months.
Reduced Interest Rates,
HDFC Bank has the lowest interest rates. Our chosen clients can additionally take advantage of further price reductions.
Low Processing Fees,
You may anticipate paying a processing charge that is only 1.5% of the loan amount.
Flexibility Taking Gold Loan With HDFC Bank
With HDFC, a gold loan begins at 15000 rupees (10000 in case of rural areas) so even if you need a small amount you can easily opt for a gold loan. We provide flexible terms for payments and a high LTV ratio that are bigger advantages to the customers. Gold loans have a minimum and maximum payback period of six months and twenty-four months, respectively. Also, you may obtain a loan up to 75% of the computed gold weight, which is a high maximum Loan to Value ratio. Six months to two years are available as loan terms. You may thus choose based on your tastes. On an average
HDFC gold loan
rate is about 11.91% on gold loans, to be specific the minimum interest rate is 9.5% whereas 15.35% is the maximum rate charged on gold loan charged by HDFC.
Quick processing Taking Gold Loan With HDFC Bank
The hdfc bank's gold loan process is fairly rapid because there are few documentation requirements.
Documents that are required for the HDFC bank loan apply-
The paperwork process for this loan offer has been reduced by HDFC with a one-page method in place. The following documents are required in order to complete an application.
A legitimate ID that has received official approval (PAN card, Passport, DL, etc.)
A legitimate, officially recognised address evidence (utility bill, passport, Aadhar card, ration card, etc.)
Applications need to be accurately filled out and signed.
Any further documentation that HDFC Bank determines is required to finish the application process may be asked.
Loan disbursement is very quick and it sanctions the loan within 45 minutes hence it becomes very convenient for the customers to get a HDFC bank gold loan.
No Credit History Check
At HDFC for the purpose of a gold loan apply, the credit history of their customer does not matter much so it would be easier for a person to apply for a loan who is taking a loan for the first time or who has not much history of their advances.
You can also apply for the loan very easily at HDFC’s online platform, many people apply for HDFC gold loan, apply online.
To apply, all you need is a computer or mobile device with a reliable internet connection.
Because the procedure is so simple, anyone can finish it. In order to begin the loan application process, go to the HDFC Bank website and choose Gold Loan from the list of available products.
If you go to the Gold Loan section, you will notice a "Apply Now" button. You will be led to an application form where you must complete the data mentioned below when you click on it.
As soon as you fill out the form completely and press the "submit" button, your application will be finished. Staff from HDFC Bank will contact you upon receipt of your application.
Lower Interest Rates
As we talked earlier the interest rates provided by HDFC are very minimal with a processing fee of only 1% and foreclosure charge of 1%+ GST where you also get benefits of foreclosing a loan.In some cases special rates are available.
If we compare to other banks the rate of interest by HDFC is comparatively low and very reasonable. For instance, Axis bank currently has an interest rate of 13.5%- 14.5% whereas Kotak has an interest rate of 8%-17%.
Therefore, you may conclude that getting a loan from HDFC is quite affordable.
Eligibility Criteria for Gold Loan
There are a few conditions that applicants for this gold loan must fulfill.
1- The applicants must be capable of making the loan's repayments.
2- Only after pledging gold as security are loan applicants eligible to qualify for this loan.
3- The eligibility criteria is at some point similar to HDFC bank home loan eligibility.
Applicants for gold loans must be at least 21 years old and in possession of the gold they are going to commit.
Safety and Security
The security of your gold is entirely the bank's responsibility, and this must always be kept in mind. The gold is thereby shielded from fire.
HDFC has also been named Forbes' World's Best Bank Report's No. 1 bank in India. So you can have an undoubted trust in this bank and rely on HDFC for your good future.
Overall we can say, the gold loan at HDFC is swift and snappy. With your gold jewellery or coins, you may practically walk in and receive an over-the-counter loan payout.
Your gold is appraised and sealed with a special 3-way seal in your presence to guarantee that it is safe in the bank's safety vault. Every moment is a good opportunity to pay off your gold loan. Also, it is repayable at any time without incurring a fee for foreclosure.
So, if you are thinking of investing and searching for a bank to get advances HDFC bank would be a great option to get Swift loans.