Some best way to use a Gold Loan

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Uncertain times

What future holds no one knows? When an uncertain miserable time approaches it tests our well-being as well as our strength. Gold proves to be of use in that time because of its beneficial value.Gold is an investment that never goes waste irrespective of whoever does it young or old. The gold loan comes to the rescue in such times. The gold loan can get processed in a short period. Minimal documents are required for loan processing.

 Gold loan process :- offline and online

The process is quite simple and convenient.

Offline 

1. Visit your nearest Canara bank branch.

2. Enquire about the gold loan process and check the eligibility criteria for it.

3. Fill up the application form.

4. Visit the bank with gold for a purity test and documents such as identity proof and address proof for verification.

5. If you are eligible then the loan will get sanctioned and you will get the sanction letter in which loan amount, processing fee, Interest rate, prepayment charges, etc, along with terms and conditions is mentioned.

6. Once you deposited the money in the bank; it is safely kept in lockers and the loan amount is credited to your account.

Online process

1. Visit the Canara bank webpage or open the mobile application.

2. Visit the gold loan page and check your eligibility criteria and other aspects.

3. Fill up the application form present on that page.

4. After a while, the bank person/ representative will contact you and fix an appointment to visit your bank\'s branch.

5. Visit the bank at a specific time for document verification and purity test of gold which has to be kept as collateral. Identity proof such as Aadhar card, driving license, voter id and address proof such as pan card, passport has to be brought.

6. Sanction letter is granted if you are eligible for a loan in which the details are mentioned.

7. Once you deposit the gold in a bank; a loan is sanctioned and disbursed into your account.

8. The gold is kept safe in lockers. You only need to visit once or twice to the bank for an online application.

9. Everything can be tracked through the website or application.

10. Gold of up to 50 grams with a purity of 18 to 22 carat is granted by the bank for the loan.

 Interest rate and processing time

The processing time is much longer in personal loans because in gold loans it takes a minimal time which makes it a hassle-free process. In times of emergency, it can be processed more quickly. The interest rates of  Gold loan sbi are quite less as compared to other banks which charge you quite well and tenure is given less. In contrast in SBI, the interest rate is low 7% and a tenure of 12 months is given for repayment which makes it quite convenient. If you miss any EMI or periodic payments; you can extend them before your tenure expires. The maximum LTV offered is 75% on the net weight of gold.

 EMI calculator

The amount disbursed can be paid back at your convenience. In the gold loan process, you can check online the offer and calculate your EMI in the EMI calculator and plan accordingly. It gives an easy option for borrowers to pay the principal and interest back without any restraint. You can select the tenure with the EMI calculator. Besides an EMI calculator, there is a gold loan interest calculator as well. 

Repayment of loan

After acquiring the SBI bank gold loan you don\'t need to worry about the repayment as it gives you the tenure repayment option where you can choose the period and amount which you can pay. The repayment is done by bullet repayment, overdraft facility, or EMI options. You can choose the tenure of repayment as per your will between 6-12months after sanctioning the loan. Bullet repayment is a service where you just have to pay the interest regularly and principal at the end of the tenure. 

This is granted in the case of short-term loans. Overdraft facility includes borrowers will to withdraw the amount he/she wants. Thus the interest will only be applicable on the amount of money disbursed. Lastly, in the EMI options where a fixed amount has to be paid monthly by the borrower. We at SBI bank make it easier for you to repay the loans through these options. Our services are for your betterment only.