A gold loan is also known as a loan against gold, which is a kind of secured loan that is given to the customer by pledging the customer’s gold articles ranging from 18–24 carats, and are kept as collateral. The loan amount given against the gold is typically up to 80% of the current market value of that gold. And HDFC Bank, one of the leading banks these days, has started offering gold loans to their customers.
HDFC Bank has been offering gold loans at an interest rate starting at 8.50% p.a., and the loan amount starts at Rs. 10,000. HDFC Bank offers secured and quick disbursal gold loans. You can avail of a gold loan at any point in time with HDFC bank.
This article will help you understand more about HDFC Gold Loan and how to get one. So, let’s get started and uncover every fold related to it!
HDFC Bank Gold Loan Details.
Loan Amount – Rs. 10,000
8.50% interest rate
Loan term: 2 years
Processing fee – 1% of the applied loan amount
How to calculate the gold loan EMI?
Benefits of HDFC Bank’s gold loan
This is the kind of loan that one can avail of at any time and get funds instantly. You can pledge your gold items to HDFC Bank and take funds against them from the bank. Below are some of the features of the HDFC bank gold loan:
Minimal documentation
HDFC Bank follows an easy and simple KYC-based documentation process. You must submit your required documents to the bank executives to process the loan further. And there is no requirement for submitting income proof or credit score details for gold loans.
Low-interest rates
HDFC bank offers the lowest interest rates in terms of gold loans. And there are many further benefits, along with a minimal processing fee of 1% of the loan amount.
Flexible loan repayment tenures
HDFC Bank offers flexible gold loan repayment tenures to its customers starting from 6 months to 24 months.
A Waiver on the Gold Loan Foreclosure Charges
The best part of availing of a gold loan with HDFC bank is that after the first three months, there are no extra charges if you wish to foreclose your gold loan and take your gold items back from the bank.
Different schemes for gold loan repayments
HDFC bank offers three different schemes to repay the gold loan:
You can pay the interest first and then pay the principal amount of the loan at the end of your loan tenure.
You can choose the bullet repayment option, which means you can pay the principal amount first and then pay the interest after one year of the loan.
You can choose to pay the regular monthly EMIs of the loan amount.
HDFC Bank gold loan eligibility criteria
To avail of the gold loan from HDFC Bank, you need to fulfill the below criteria:
The age of the applicant should be between 18 and 65 years.
The applicant should be able to repay the gold loan within 6 to 24 months.
Your occupation also matters greatly while applying for a gold loan with HDFC Bank. You can be a self-employed individual, a business owner, a salaried employee, a senior citizen, a homemaker, or a student.
The gold items you are willing to keep with HDFC Bank as collateral should be 18K to 22K.
You are eligible for a maximum value of 80% of the current market value of the gold items you are pledging with the bank.
Documents required for a gold loan from HDFC Bank
When you are applying for the HDFC Bank gold loan, you need to submit the below documents:
The filled out applicant form,
One passport-sized photograph,
Identity proof (any one of the following),
PAN Card
Passport,
Driving License
Address proof (any one of the following)
Adhaar Card
Utility Bill
Passport
Ration Card
HDFC Bank gold loan fees
Loan Processing Charges | 1% of disbursal amount |
Valuation Fee | Rs 250 +applicable tax up to 1.5 lacs per packet per loan Rs 575 +applicable tax above 1.5 lacs per packet per loan |
Foreclosure/ Prepayment charges | 1% + applicable tax |
Stamp Duty & other statutory charges | At Actual |
Renewal Processing Fees | Rs 350 + applicable tax |
Auction charge | As per actual |
Bounce charges | Rs 200 + GST |
Legal and collection charges | At actuals |
CIBIL Report copy charges | Rs 50 |
Default Interest/Penalty | 2% additional levy over existing Rate of Interest from the date of maturity till loan account is regularized/closed. |
Conclusion
Pledging against your most valuable asset, i.e., Gold, can be a very hassle-free method of getting a loan in a time of money crunch. Reputable banks like HDFC are providing Gold loans at a 1% loan processing charge. So, if you are an existing customer of HDFC Bank, then go get a gold loan within a few hours.
FAQs
If there comes a situation where the customer is unable to repay the HDFC Bank gold loan, then first, the bank will be sending frequent reminders to the customer via emails, texts, and letters to inform them about the pending amount.
If still, after a stipulated time, there is no response from the customer, then the government has given the authorization to the bank to go ahead and sell or put the customer’s gold items up for auction and repay their loan amount with that.
Yes, once the gold loan amount is transferred to your account by the bank, after three months, you can repay the whole loan amount and foreclose the loan without any extra charges.
The main condition of the bank is that the applicant should be at least 18 to 65 years of age.
No, when applying for a gold loan, there is no requirement to check the CIBIL scores of the applicant.
Yes, HDFC bank allows their customers to apply for gold loans via internet banking and mobile banking too.
The maximum gold loan tenure is 2 years.
No, there is no rule like that. There is no need to submit any bills for the gold items.
Yes, HDFC Bank allows gold loan transfers from another bank to HDFC Bank.