By Gold loan interest rate varies from bank to bank.
There is a wide range of interest rates for gold loans, depending on the bank and the amount of loan you take. The tenure of your loan also varies from bank to bank.
The interest rate can be calculated as follows:
Gold Loan Interest Rate depends on the loan amount and Loan Tenure.
For example: If you take a loan of Rs. 1 lakh for 1 year, your interest rate will be 7% p.a. Whereas if you take a loan of Rs. 10 Lacs and more, your interest rate will be 8%, but if the tenure is 5 years then the effective rate comes down to 6% per annum
Gold Loan Interest Rate varies from banks to non-banking financial companies(NBFC).
As you can see, the interest rate on a gold loan from NBFCs is lower than banks. However, some offer much lower rates than others. Ruptok offers gold loan interest rates at 0.49% per annum with an LTV ratio of 75%. It is one of the lowest in India when compared to other banks or NBFCs.
So why do you need a Gold Loan in your life? Well if you have ever been stuck without cash because you forgot something important again and again, then this is a perfect solution for you since it doesn’t require any documentation or formalities which makes it extremely easy to get these loans approved within a few hours without hassle as well!
The tenor for gold loans is up to 33 months.
The tenor for gold loans is up to 33 months. The interest rate will vary depending on the loan tenure, and the maximum tenure allowed by the lender is 33 months. If you take a gold loan with a longer-term, you can get lower interest rates because of this. For example:
- A 30-month loan may have an interest rate of 8%, while a 24-month loan may have an interest rate of 7%.
Factors Affecting Gold Loan Interest Rate
- Period: The rate of interest offered on gold loans is very dynamic, so the interest rate will also depend on how long you want to take a loan. If you need a short-term loan, the lender may charge a high rate of interest to compensate for the high risk involved in offering such loans. But if you are looking at taking an advance for a relatively long period then the lender would be willing to offer lower rates as they can afford to do so because they have better bargaining power when compared with retail borrowers who take small amounts that can easily be repaid within weeks or months.
- Bank: All banks have different rules and regulations regarding gold loans and therefore these loans come with varying charges depending on which bank provides them. Typically, public sector banks tend to charge higher interest rates due to their higher credit rating in comparison with private lenders like NBFCs (Non–Banking Financial Companies), etc., but this is not always true since many factors affect the cost of borrowing such as LTV ratio (loan value/gold price), credit score among others which will influence how much one must pay back after repaying an amount borrowed from his/her bank or another financial institution such as NBFCs
Time or Tenure
The amount of time you take to repay the loan will determine your interest rate. If you pay back within 1 year, then the bank will charge a higher rate of interest than if you take 2 or 3 years for repayment. This is because banks prefer to lend money for a longer period rather than a shorter one.
The longer the tenure, the better it is for borrowers as they get lower rates of interest on their loans and hence can repay them faster without going into debt traps or defaulting on payments.
However, though it might seem tempting to opt for a long tenure (say 5 years) instead of going into debt traps such as paying EMIs over an entire lifetime, remember that if you don’t use this money wisely during those five years and end up with nothing worthwhile at all – then what’s the point?
Bank or NBFC
Banks and NBFCs offer gold loan interest rates in the range of 12% to 15% per annum. If you are looking for the lowest gold loan interest rate, you need to be aware of a few things.
First, find out which bank or NBFC is offering the lowest gold loan interest rate in your city. It can be done by searching online or asking friends and family members who have had a similar experience with this kind of loan before.
Second, compare different banks’ or NBFCs’ rates on similar terms (e.g., tenure).
LTV Ratio or Loan To Value Ratio
The Loan to Value (LTV) ratio is a comparison of the amount you can borrow against the value of your gold. If your LTV ratio is 65%, this means that for every ₹1,000 worth of gold you bring in to us, we will give you ₹650 as a loan. The higher your LTV ratio, the more we will lend to you and vice versa.
- Our lowest interest rate for gold loans with an LTV ratio of 60% is as low as 9% per month (24% per annum).
- Our lowest interest rate for gold loans with an LTV ratio of 65% is as low as 9% per month (24% per annum).
Gold Price Fluctuation
When you take a gold loan, you have to pay the interest on the principal amount. The rate of interest is decided by the lender and it is not fixed for all borrowers. The interest charged by lenders is dependent on various factors such as the current market price of gold and the inflation rate.
In the case of short-term loans, like those taken for buying a new car or house renovation purpose, the lender will charge a higher rate of interest as compared to long-term loans that are taken for other purposes like marriage expenses or education costs, etc.
Credit Score
Your credit score is a number based on your past borrowing, payment, and repayment history. A good credit score means that you have a good financial history and are likely to pay back any debts you take on in the future. If you don’t yet have a good credit history, or if you’ve been late with payments in the past, it may be harder for you to get approved for a loan.
It’s important to note that not all gold loans require applicants to have an excellent credit score. Many lenders will offer loans if your score is only average (which can be as low as 600). However, this doesn’t mean that there aren’t other factors involved in approving someone for these kinds of loans; as we’ll discuss later on in this article, many experts say that even people with high scores might still be denied permission by certain companies if they present themselves at the wrong time or place!
People can avail of a loan against gold at 12% – 16% per annum.
People can avail of a loan against gold at 12% – 16% per annum. This is a good option for those who have some quantity of gold but the price has come down, and they are not able to sell their precious metal at the current market rates. This type of loan helps you to get up to 80% cash without selling your gold physically and you can pay back on monthly EMIs as well.
This type of loan usually comes with no hidden costs or fees, so there is no need to worry about them while applying for this loan. Moreover, it is also available online through online portals where one can apply without visiting any bank branch or going through lengthy procedures involved in availing such loans from banks via their branches or other channels like post offices, etc., making it more convenient than before! In addition, these loans can be closed anytime one wants after paying off all installments for the entire tenure decided by the lender which makes it flexible too!
