Long acknowledged as among the best government banks in India, Indian Bank offers a range of schemes and offers for its customers. The bank has long aligned its operations to meet the needs of its customers, and the Indian Bank Gold Loan is another such step in this direction.
Traditionally, gold was simply used for festivities and celebrations within the family. However, more and more investors have now realised its inherent investment value, making it a popular option. A key benefit of gold investment stems from its liquidity, which makes it helpful in a financial crunch.
This is because financial institutions offer financing when you pledge your gold as security, giving you easy access to funds. To learn more about the Indian Bank Gold Loan, its interest rate, and more, read on.
The Indian Bank Gold Loan is available under the Agricultural Jewel Loan Scheme, through which you can take loans by using your gold as collateral. This loan can prove beneficial to meet a range of agricultural requirements.
If you have been waiting to buy new machinery, availing of the Indian Bank gold loan could be your best chance of getting the needed capital to upgrade your machinery. You could also use the funds to hire new staff or upgrade your farm infrastructure.
Here’s more about the features and benefits of the scheme, including gold loan interest rates.
There are several features of the Indian Bank gold loan which make it highly appealing for those wishing to enhance their agricultural productivity by investing in it. Here are the top features you can enjoy:
The application process for the loan, as well as disbursal, are extremely easy and convenient procedures. You can apply online for the loan, and the disbursal happens quickly and efficiently.
The repayment tenure for the Indian Bank gold loan is flexible and offers you heightened convenience. For the Bumper Agri loan, the tenure is 6 months, whereas, for the other Agri Loan products, the tenure is up to 12 months.
Starting at 8.95% per annum, the Indian Bank gold loan interest rate is among the most competitive in the market. The gold interest rate in Indian Bank may vary depending on various factors such as loan type, amount, loan-to-value ratio, repayment tenure, etc
The application, disbursal, and repayment process is entirely transparent and seamless, meaning that you will never be expected to pay any hidden or unexplained charges.
The processing charges for the Indian Bank gold loan are also nominal, with the maximum cap being 0.50% of the loan amount.
The features of the Indian Bank gold loan go a huge way toward attracting the attention of farmers who wish to attend to their urgent agricultural needs. The benefits of the loan are extremely useful and make the loan especially appealing.
Here is a glimpse of the benefits you can enjoy:
The loan amount can be as high as 85% of the gold you pledge as collateral while meeting other requirements.
The processing fee is minimal, nil for some borrowers, making it a pocket-friendly financing solution.
The loan quantum is as per the market value of the jewellery or gold provided by the potential borrower. For example, if the Indian bank gold loan rate per gram today is ₹5,600 and you pledge 150 grams as collateral, you can get around ₹7 Lakhs with an LTV of 85%. This ensures that funding you avail as per your current needs and market trends.
Access to gold loan EMI calculator to ensure that the loan terms are within your budget and repayment is affordable and manageable.
While applying for a gold loan, you must submit a few documents to bolster your application. To apply for an Indian Bank gold loan, you will need to submit the following documents, along with a filled-out application form:
ID Proof (Aadhaar card, voter ID card, passport, driving license, etc.)
Address Proof (Aadhaar card, voter ID card, passport, driving license, etc.)
Proof of agricultural land ownership along with proof of crop cultivation
Note that the above-mentioned list isn’t exhaustive and the required documents may vary. You can confirm the exact documents required before applying to ensure that you can have a hassle-free experience.
The Indian Bank Gold Loan eligibility extends to every individual farmer. Meeting these basic gold loan eligibility criteria is crucial to ensure you can get the funding you need. Basic criteria include:
Age Criteria: You must be between 18 to 75 years
Gold Requirements: The gold must be in the form of ornaments with a purity between 18-22 carats
CIBIL Score: You must have a CIBIL score of above 500
Nationality: You must be an Indian citizen
Once you meet these requirements, you can apply for the loan you want. However, like documentation, the eligibility criteria may vary depending on certain factors. You can check your eligibility with the eligibility calculator or by manually checking the criteria.
Launched under the Gold Monetisation Scheme, the Sovereign Gold Bond (SGB) offers government securities. Issued by the Reserve Bank of India (RBI), these securities are available in tranches for subscriptions. Here is a brief overview of Indian Bank SGBs:
The bonds are extremely secure as they are issued against the government’s physical gold holdings
You can use the Indian Bank gold bond as collateral for availing loans with the bank
The securities are highly liquid, and you can exchange them for currency at any time
Applying for the Indian Bank Gold Loan scheme is extremely easy and hassle-free for absolutely anybody. You can apply online or offline mode by following the steps mentioned below:
Visit the official website for gold loan application
Choose whether you are an existing customer
Input your name and mobile number
Verify the captcha given
Input the OTP you receive post this
Once you have filled in these details, an executive from the bank will contact you in order to guide you along. Keep the documents required for KYC handy before you start the process in order to ensure a seamless experience.
A date will be set at which you will be required to visit the branch for the bank to assess your jewellery’s value. Post this; the bank will disburse the sanctioned amount to your account.
Visit the nearest branch with your gold and jewellery articles
Reach out to an executive to get the gold loan application started
The appraiser will assess and value your jewellery
Depending on the purity and value of the gold you have brought in, the bank will sanction a loan amount. Once all the formalities are complete, the sanctioned amount will be available in your account.
The Indian Bank offers this Jewel Loan Scheme for the non-priority sector to help meet their short-term credit needs. For these loans as well, you can provide their jewellery and other accepted gold items as collateral.
There are several features of the Jewel Loan Scheme that make it extremely convenient for borrowers. Read on to learn more about these features.
The loan quantum is as per the weight of the collateral. The Indian Bank Jewel Loan per gram rate is fixed on a periodic basis or as per 70% of the market value of the jewellery, depending on whichever is lesser.
A minimum processing fee of 0.50% is charged on the loan amount sanctioned.
The interest rates for this scheme typically start at 8.95% per annum. The Indian Bank Jewel Loan interest rate can vary depending on the specific loan product, the amount of the loan, and other factors.
Unlike the non-priority Jewel Loan Scheme, this gold loan scheme is a financing program designed to cater to the short-term credit needs of farmers and agriculturists. This scheme is an excellent opportunity for individuals and businesses engaged in agricultural activities to get financial assistance quickly and easily by pledging their gold ornaments as collateral.
Indian Bank provides a hassle-free and convenient process for securing the loan, which you can use for crop production, farm equipment purchase, irrigation, or any other agricultural purpose.
An overdraft against the gold loan is a financing option that allows you to withdraw funds up to a pre-approved limit against the collateral of your gold loan. This facility is an excellent opportunity if you need immediate access to credit.
This facility offers flexible repayment options and competitive interest rates, making it an attractive option for those seeking short-term credit. With Indian Bank, you can enjoy interest rates that start at 9.90% per annum with a repayment tenure extending to up to 35 months.
The Indian Bank Swarna Nidhi RD is a great tool for Indian Bank customers who wish to invest in gold. It offers you a chance to start a recurring deposit account and use the funds to purchase gold from Indian Bank.
At the time of the account’s maturity, you can opt to purchase gold equivalent to the maturity amount. You also get various discounts and incentives, including accident insurance by the bank’s IB Chatra Policy if the account’s maturity value is above ₹12,000.
There are several features offered by the Indian Bank Swarna Nidhi RD that make it an exciting investment instrument for both new and existing investors. These features make the RD easily accessible to different kinds of investors who wish to trade in gold. Here’s an overview of these features:
You can open the account with as little as ₹500
You can make deposits in multiples of ₹100, capped at ₹10 Lakhs per month
The deposit period is flexible and ranges between 6 to 24 months
The interest levied on the account is on a quarterly basis
Avail discounts for ₹25 off per gram while purchasing gold coins from the money deposited
Free accidental insurance of ₹1 lakh is offered to deposit holders whose maturity value is above ₹12,000
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You can reach the Indian Bank customer care team through their toll-free number, 1800-425-0000 or 1800-425-4422.
You can reclaim the gold and jewellery offered as collateral for the loan by ensuring timely repayments and not defaulting. Once you repay the whole amount, you can reclaim the gold from the branch.
The Indian Bank Gold Loan per gram rate depends on the market rate and purity of the gold offered as collateral. You can check the lender before applying to ensure that you get the best value.
You can get an Indian Bank Gold Loan of 85% of the value of your gold jewellery.
With flexible repayment tenure ranging up to 35 months, you can repay the loan in EMIs or as a lump sum amount at the end of the loan tenure.
Yes, you can pay off the loan before the end of the tenure. The bank may levy prepayment charges in some cases, which vary based on the scheme and repayment tenure. It is advisable to check the prepayment charges with the bank before making early repayment.