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Banks and NBFCs in Chennai provide gold loans with the best interest rates and long tenure periods. Prepayment penalties varies from lender to lender. Quick disbursement of loans and no charges on foreclosure. Check deals now through CreditMantri!
Of Appraised Gold Value
?25 - 150
Rated as the safest city in India, Chennai is the capital of the state Tamil Nadu. Chennai has a broad industrial base in the automobile, computer, technology, hardware manufacturing and healthcare sectors.
The city has a long history with banking right from the colonial times and today numerous prominent commercial and banking establishments have the city as their first home, the city also serves as a captive centre of operations for several global banks and financial corporations.
Chennai is home to some of the leading banks and other NBFCs in India. Are you looking for a gold loan in Chennai and wondering what your options are? You have reached the right place. Read on!
Gold loan is a secured loan wherein a customer pledges gold (this includes jewellery, ornaments and bank-issued coins) as collateral for taking a loan, it is known as a gold loan. The bank uses the gold as security against potential payment default by the customer. The borrower gets money to the value of certain percentage of the gold that is pledged.
Gold loans are short-term loans and the repayment period can range from one month to a few years. If an individual needs money for immediate expenses and expect to be able to pay it back in the short term, then this type of loan might be a good option.
A gold loan is the immediate help in times of emergencies as it helps an individual get cash within a day. The loan can be used for following purposes.
Gold Loans have the following features which will explain why they are more convenient in getting instant cash for short-term needs.
Gold loans are easy means of getting money during an emergency. While choosing the gold loan, it is important to check some of the factors that determine the loan. Banks and NBFCs do not give the entire value of the gold as loan. As per the RBI guidelines, the Loan To Value (LTV) is up to 75% for gold loans.
As gold loans are short-term loans, borrowing should be done base on the need and repayment capability. The lenders will auction the gold if the customer fails to repay the loan amount.
Checking the interest rate is important while choosing the best gold loan. Public sectors bank charge less interest when compared to NBFCs. Also, the repayment structure is different in both the financial institutions. The documentation process is lesser with NBFCs while the banks may have strict paperwork. The disbursal of the loan is much faster with NBFCs and no prepayment charges are levied unlike banks.
Choosing the gold loan depends on the loan amount and circumstances. For faster loan disbursal is a good choice while for getting low interest rate on the loan, a bank is a good option.
Following are the eligibility criteria that a borrower needs to fulfil before applying for a gold loan.
Though the paperwork is minimum, the banks generally demand the following documents while applying for a gold loan. Following are some of the documents that are necessary to avail the gold loan.
Following are the fees and charges generally applicable to get a gold loan Chennai. The rates may vary from lender to lender.
Defaulters who have not paid their previous loans or credit card bills can get Gold loans without much difficulty in Chennai. As a gold loan is a secured loan, even if the defaulter again defaults, the collateral will be auctioned by the lender and the amount will be taken by them.
Though it is easy for defaulters to get a gold loan, it is highly important to repay it consistently. This can improve the credit score and credit eligibility.
Individuals who need gold loans can apply by visiting any nearby bank or NBFC with the gold. After filling up the application form, the gold will be evaluated by the bank’s representative. Following it, the loan will be disbursed in an hour. Some lenders do offer door-step services to their customers.
The customers can also apply through CreditMantri to get the best gold loan. CreditMantri matches the borrower’s credit and demographic profile to the lender's lending criteria and presents a shortlist of only those lenders willing to lend based the credit profile. The customers can choose the best lender who offer better interest rate and services by applying through CreditMantri.
As per the new RBI rule, the LTV for gold loans has been raised from 60% to 75%. Chennai is home to the leading banks and NBFCs which provide Gold loans.
The customers can choose the best lender who offers better interest rate, suitable repayment options and customer services. For speedy disbursal of the gold loan, an NBFC is recommended, but the interest rate is higher than the banks.
The below table shows the interest rate range of some of the popular lenders in Chennai.
The interest rate given above are subject to change depending on the market situations at the sole discretion of the lender.
1. Who can apply for the gold loan in Chennai?
Anyone aged between 18 to 75 years can apply for the gold loan in Chennai.
2. What is the interest rate on the gold loan?
The interest rate may vary based on the market situation and according to the product variants. The interest rate generally ranges between 14% to 17% for banks and 14% to 26% for NBFCs.
3. Can I prepay the gold loan and are there any charges levied on prepayment?
Yes, you can prepay your gold loan, and most of the banks and NBFCs do not charge any penalty on prepayment.
4. Should I have a good credit score to avail a gold loan?
A good credit score is not a requirement for availing a gold loan. You need to have gold to pledge as collateral. Consistent repayment is important as it will reflect in the credit report.
5. How long does it take to get a gold loan?
You can get a gold loan in a day. It is disbursed within an hour after your application process is completed.
6. What is the maximum tenure of a gold loan?
The repayment period of a gold loan is generally up to 60 months. However, the tenure varies from lender to lender.
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