Features of Vananchal Gramin Bank Gold Loan
- High loan amount: With a gold loan, you can borrow as much as you want against your pledged jewellery. Lenders use theLoan-to-Value Ratio to determine the loan amount (LTV). This ratio can range from 65 % to 90 % in the case of a gold loan.
- Repayment Flexibility:- Another advantage of applying for a Gold Loan is the possibility to select the most convenient repayment option for you. Any lending facility demands repayment, and you have some gold loan repayment choices to choose from.
- EMI Method:- This is a monthly paid tenure. The principal and interest are to be paid every month.
- No income proof:- Because the loan is secured against the borrower’s gold commitment, most gold loan applications do not require income evidence.
- Faster Processing:- Banks and other lending institutions can easily make gold loans since physical gold is used as collateral. Lending against gold is a safer choice for banks because the gold can be easily sold if the borrower defaults. As a result, banks are more likely to disburse these loans within a few hours. As a result, borrowers will benefit from faster processing times and greater ease.
However, disbursing the funds does not take long. - Zero Processing Fees – Because gold loans are granted promptly with gold as collateral stored by the bank, many banks and NBFCs do not charge any processing fees.
- Lower Interest Rates: Banks charge a lower interest rate on gold loans since they are secured loans instead of unsecured loans like personal loans. Gold loans include interest rates ranging from 13 to 14 %. Personal loan interest rates, on the other hand, are often around 15%. In addition, the bank lowers the interest rates on gold loans for applicants who can supply additional collateral.
- Interests paid regularly:– Amount to be paid on regular intervals – monthly, quarterly, semi-annually, or annually and the principal at the end of the term.
- Payments made in Advance:- Payment will be a complete interest payment in the starting and principal amount at the end of the term.
- There is no requirement for credit history:-
A gold loan may be a good choice because the lenders do not consider the credit history while approving the loan. This is due to the security supplied in the shape of gold ornaments or bank-minted money. A gold loan is ideal for those who are looking for a loan with lenient eligibility requirements. - Security of Physical Gold:- It is the lender’s responsibility to keep the physical gold safe. Borrowers do not have to worry about it because it is generally kept safe in the bank’s locker. The bank returns the gold once they have paid back the loan.
Vananchal Gramin Bank Gold Loan Comparision with banks
Bank / NBFC
Rate Per Gram
Interest Rate
Gold Loan Tenure
Min – Max Loan Amount
₹ 3,506 to ₹ 4,621
0.099
3 to 24 months
₹ 10 thousand to 5 crore
Private Gold Loan
₹ 3,506 to ₹ 4,621
0.1
6 to 12 months
₹ 10 thousand to 5 crore
₹ 3,506 to ₹ 4,621
0.12
7 days to 36 months
₹ 3 thousand to 1 crore
₹ 3,506 to ₹ 4,621
0.1225
12 months
₹ 3 thousand to 1 crore
₹ 3,506 to ₹ 4,621
0.1025
36 months
₹ 20 thousand to 50 lakh
₹ 3,506 to ₹ 4,621
0.1
3 to 36 months
₹ 10 thousand to 5 crore
SBI Gold Loan
₹ 3,506 to ₹ 4,621
0.0975
12 to 36 months
₹ 20 thousand to 50 lakh
₹ 3,506 to ₹ 4,621
0.075
3 to 36 months
₹ 20 thousand to 50 lakh
₹ 3,506 to ₹ 4,621
0.1025
12 months
₹ 20 thousand to 50 lakh
₹ 3,506 to ₹ 4,621
0.1025
12 months
₹ 10 thousand to 5 crore
IIFL Gold Loan
₹ 3,506 to ₹ 4,621
0.12
11 months
₹ 3 thousand to 50 lakh
Vananchal Gramin Bank Gold Loan EMI calculator
Vananchal Gramin Bank Gold Loan Documents Required
At the time of application the following documents are required:
At the time of disbursement the following documents are required:
Vananchal Gramin Bank Gold Loan Documents Required – FAQs
✅ Is it true that a gold loan is a secured debt?
Because a gold loan is a secured loan, the interest rate is lower than an unsecured loan like a personal loan.
✅ What is the repayment period for the gold loan?
The loan is normally for 3 to 12 months. However, the payback time cannot be longer than two and a half years, and the loan must be paid back within 30 months (or 36 months, depending on the lender).
✅ What is the rate of interest for a gold loan?
The interest rate on your gold loan differs depending on the lender. For additional information, visit our website Dialabank.com and look at the gold loan offers from various banks and private organisations.