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Equitas Gold Loan

Apply Equitas Gold Loan

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Overview Equitas Gold Loan

Equitas gold loans are offered by Equitas Small Finance Bank Limited to customers to meet their liquidity requirements, especially during the ongoing COVID-19 pandemic. In order to offer the best services to its customers, the bank processes gold loans through easy documentation set up and disburses instant cash.

Equitas gold loan interest rates and other details

Equitas gold loan can be availed against gold jewellery. This loan amount can be repaid through monthly instalments or an interest mode scheme instead of a one-time repayment. The loans are offered in ticket sizes ranging from Rs. 30,000 to Rs. 40 lakhs. The maximum loan tenure for gold loan schemes is 24 months.

How to avail Equitas gold loan

Customers of Equitas Small Finance Bank can avail of gold loans by visiting the nearest branch. Borrowers can further repay the gold loan through EMIs. Equitas SFB also provides an overdraft facility against this loan product.

Apart from gold loans, Equitas also offers various banking services like:

  • current accounts, 
  • salary accounts, 
  • savings accounts, 
  • deposit accounts, etc

The bank also offers third party insurance, ATM-cum-debit cards, mutual funds, and FASTags.

What are the eligibility criteria for an Equitas gold loan?

Here are the eligibility criteria for availing Equitas gold loan:

  • The applicant must be at least 18 years of age
  • The loan can be availed by any individual who owns gold, gold ornaments, gold coins that can be mortgaged with the bank
  • Applicant must have a regular income, although this criterion is optional
  • Individuals who have a savings or current account with the bank are eligible to apply

What are the documentation requirements for the Equitas Gold loan?

Listed below are some of the documents required to be submitted while applying for an Equitas gold loan:

  • Filled and signed gold loan application form
  • 2 recent passport size photographs
  • Identity proof - Passport, Voter ID card, Driving license, PAN card, Aadhar Card, Government department ID card
  • Address proof - Bank account statement, Latest electricity bill, Latest mobile/telephone bill, recent credit card statement, house lease agreement
  • Income proof – Recent salary slip stating all deductions or Form 16 or Income Tax Returns of last 2 financial years (optional)

How is the Equitas gold loan amount determined?

Here are the steps involved in gold loan amount estimation by the bank:

  • At the time of loan application, the bank values the gold or gold ornaments set by the borrower as collateral. This helps in arriving at the loan amount to be granted.
  • The process also involves the verification of gold purity. 
  • The weight of any other gems, stones, or metals on the gold ornaments is deducted at the time of valuation.
  • The loan amount granted is a maximum of 70% of the pledged gold’s current market value.
  • If an applicant is ready to pay a higher interest rate, the bank may approve up to 90% of the gold value as the loan amount.

What are the charges associated with gold loans in India?

Here are some of the charges that apply to gold loans in India:

  • Processing fee: Some banks may charge a processing fee that can be negotiated or may be waived off.
  • Valuation fee: These are charged as a small percentage of the gold loan amount and is paid to the third-party valuer.
  • Pre-payment penalty: Some banks may charge a pre-payment penalty on loans that are repaid before the tenure completion.
  • Late payment penalty: This is applicable in case of any delay in repayment of the loan amount.

Factors to note before applying for a gold loan in India

In India, gold has a certain emotional value among the general population and it is often retained in the form of family or ancestral jewellery. If someone wants to avail of a gold loan, he/she can keep this gold as collateral. However, this may not be easy due to the sentimental value of gold among people.

It is important for a gold loan applicant to be aware of the gold quality that qualifies for a gold loan. The purity of gold accepted as collateral against the gold loan must be 18-22 carat or above. No amount of precious gems fixed in the gold jewellery will be considered. Borrowers should also go through the terms and conditions in the loan agreement before agreeing to the same.

If a borrower is unable to repay the gold loan in a timely manner then he/she may lose the pledged gold or gold jewellery. This can result in undue pressure on the borrower and his/her family. Therefore, it is very important that one gives careful consideration before availing of a gold loan.

End Note

Equitas Small Finance Bank Limited is one of the most well-established small finance banks in India with a large number of branches in the country. Equitas bank offers NACH repayment facility along with gold loan schemes. Reach out to the bank’s customer care to know more details.

FAQs

1. What is the collateral required to avail loan against gold?

Some of the collateral accepted against gold loans are gold or gold ornaments, gold coins, gold jewellery, etc. These can be easily liquidated in case of loan default. Therefore, banks offer loans against the same at reasonable interest rates.

2. What is the loan tenure option for Equitas gold loan?

It is a short term loan. As per RBI guidelines, the tenor is limited to 1 year, in case of non-agriculture use. Some of the banks offer tenure of up to 36 months too. You can take your gold back from the bank after you repay the loan completely.

3. What is the maximum repayment period under Equitas gold loan EMI?

The repayment structure depends on the bank. Mostly, banks permit repayment through EMIs or a bullet repayment at the end of the loan term. In the case of bullet payment at the end, borrowers need to pay interest on time. The principal amount will be paid in a bullet payment at the end.

4. What are the foreclosure charges on gold loans?

Most banks charge 1% of the loan amount as foreclosure charges against gold loans.

5. How do I check my Equitas loan balance?

Equitas bank account holders can the bank’s toll-free number – 1800-103-1222 to check their account balance. This number is specially meant for such enquiries.

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