HDFC Bank Gold Loan

Gold is not just the ornaments, coins and bars. Besides these physical forms of gold, you can also make your investment in this yellow metal and own it in your portfolio to earn a lucrative return. It is a non-conventional way of owning and investing in gold. With the various customer-centric HDFC Gold Scheme, you can easily make an investment in this instrument to enjoy higher returns at less risk.

By staying invested in this scheme, you can reap several benefits. For example, you can forgo all your worries about the safe keeping of your purchased yellow metal. At the same time, it will help you benefit from the increase in the price of gold. Further, with the help of the scheme, you can easily and flexibly keep your money in gold bars, coins, ETF and Gold Sovereign Bonds, thereby lowering your risk factors.

These financial contracts are also known as Gold monetization schemes. Why? This is because by investing in such a way, you will not have to keep your gold idly in your household. Rather, you can channel your idle gold assets productively and enjoy a high return on them.

With HDFC Bank, you can now monetize your unused gold, including those you have in HDFC Bank Gold Bonds, HDFC Sovereign Gold Bonds, Gold fund, Gold loan, etc. It lets you invest further in this asset class in addition to borrowing money by collateralising your existing gold in all such schemes.

For example, with the help of HDFC Sampoorna Bharosa Gold Loan,  you can pledge or hypothecate your golf as collateral and avail a substantial amount of credit with easy paperwork. With the financial institution, you can also invest in golf funds to generate a high return with the increasing value of gold. 

If you are interested in all these financial contracts, know more about them so that you can leverage these options if necessary.

Are you against the idea of selling off your gold jewellery and investments to meet your immediate financial shortages? HDFC's Sampoorna Bharosa Gold Loan (roughly translated into English as “complete trust gold” scheme) is tailored for your needs. It lets you borrow a large amount of credit by collateralising your unused gold.

To get the credit, you need to walk into an authorised branch of HDFC Bank. The HDFC Gold Loan comes with a loan-to-value (LTV) ratio of 75%. This means that your loan amount can go up to 75% of the current market price of the gold you will pledge.

The loan application process is simple and hassle-free and it requires minimal paperwork. After getting your application form, the bank will evaluate the purity and market price of your pledged gold. All these processes are significantly fast, making the borrowing seem like it is an over-the-counter loan, especially for the existing customers of HDFC Bank. They can even get credit at a more attractive gold loan interest rate. 

Here are all you need to know about the interesting features of HDFC Gold Loan comes with:

• Usage of credit: The credit obtained through gold loan has no restriction of end usage, thereby helping you manage your expenses quite efficiently. You can use the credit for personal, business or agricultural needs, like meeting short-term cash crunch, hospital bills, etc. 

• Flexibility of Tenure: You can choose a repayment period starting from 6 months to 4 years and pay off the obligations with easy instalments.

• Applicable Interest: The applicable interest rate for the HDFC Gold Loan normally starts from 7.20%. Due to this lower interest rate, the instalment amount does not become higher, making repayment easier.

• No Prepayment Charges: Good news! You will not have to pay any foreclosure or prepayment charges. So, you can save much by closing your loan before time.

As stated multiple times, the documentation process is minimal for the gold loan extended by HDFC Bank. Here are the few documents that you will have to submit to the lender during your loan application process:

• PAN Card (mandatory)

• Other ID proofs, including Driving Licence, Passport, Aadhar Card, Voter ID Card, etc. 

• Bank account statement for at least the past 3 months (If you are an existing savings account holder of HDFC Bank, you can get this documentation from the bank)

• Salary slip and/or the latest Form 16 

• Age: Between 18 and 75 years

• Employment status: Employees of a public sector undertaking, with 1-2 years of continuous working experience, and a minimum income of Rs. 15,000 (for employees from metro cities, the threshold income is Rs. 20,000) 

You can avail the HDFC Gold Loan at the market-best rate, as mentioned below:

There are no hidden charges applicable for the HDFC gold loan. Following are the different charges that you need to bear to get this loan:

**Disclaimer: The interest rate and the applicable charges on HDFC Gold Loan are subject to change, as determined by HDFC Bank. Herein all these details are listed only for informational purposes.

HDFC Gold Fund is also another smart way to invest in gold without purchasing the metal in its physical form. It is an open-ended fund that invests in gold HDFC Gold Exchange Traded Fund or HGETFs. These gold ETFs are basically open-ended mutual funds that invest in gold and let investors make profit with the increase in gold prices. These are one of the favourite investment instruments because these are highly liquid instruments and help individuals stay highly profitable in the long term.

Features of HDFC Gold Fund

Following are some of the major features of this HDFC gold scheme:

• Minimum Investment: You need to make at least an initial investment of Rs. 5,000 in this gold scheme. Further, your additional investments should be at least Rs. 1,000. 

• Redemption: There is no lock-in period in this scheme as it is an open-ended fund. As a result, you have the option to redeem your investment at any time. 

• No physical gold involved: You will not get the gold physically, thereby it does not push you to worry about its storage. The units of gold ETFs are purchased and sold in the secondary market, as a result, they are highly liquid.

• SIP: You can choose to invest in the Gold scheme with monthly or quarterly Systematic Investment Plans (SIPs).

• Flexibility: You can purchase an amount of gold starting from 1 gram.

• Return: To approximate the amount you will receive after redemption, you need to calculate the average of the closing price of gold for at least the last 3 working days.