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SBI Gold Loan – Everything you need to know

Loans have helped people in financial difficulties for decades, and there are a variety of loans available depending on your needs.

The gold loan is one sort of loan that is increasingly becoming the favored option.

Its appeal arises partly because it has a lower rate of interest than a personal loan.

A gold loan, also defined as the loan taken against gold is a source of financing obtained by putting the borrower’s gold goods (within the range of 18-24 carats) as property to a lender.

As a result, a gold loan is an excellent way to raise funds and use it when you want money to satisfy your financial obligations.

Gold Loan is straightforward to obtain; anybody with idle gold in the form of jewelry can trust their gold to receive financial aid.

This loan is a convenient way to get money without having to sell your long-term investments.

With the price of gold high all the time, you may get a lot of bang for your buck.

Table of contents

  1. SBI Gold Loan-Introduction
  2. Benefits of taking Gold Loan in SBI
  3. Who are eligible for availing SBI Loan?
  4. Loan Amount
  5. Interest Rates
  6. Loan term
  7. How to apply for this loan?
  8. Purpose of Gold Loan
  9. Documents Required during application for SBI Gold loan
  10. SBI YONO-An easy way to apply and get a gold loan from SBI
  11. Step-by-step method of application for SBI Gold Loan using YONO or You Only Need One Application
  12. Conclusion

SBI Gold Loan- Introduction

SBI Gold Loans can be obtained by providing the individual’s gold, gold jewelry, or gold coins to SBI as collateral to secure.

On timely repayment of the loan balance, SBI will safely return the given collateral.

The loan application process is simple, and loan acceptance and disbursement are both quick.

The interest rate on a personal gold loan from SBI starts at 7.50 % and goes up from there.

Also Read: Rupeek Gold Loan, Reviews, Company Profile, interest rate, 5 step program

Benefits of taking Gold Loan in SBI

  • Liberty to apply for a loan from the convenience of your own house.
  • With an interest rate of 8.25%, this is the lowest rate offered
  • Approval time is reduced because there is less paperwork.
  • In-branch wait times are reduced.

Who are eligible for availing SBI Loan?

  • People of age 18 and above with a constant source of income can apply and avail of SBI Gold Loan.
  • Pensioners can apply and avail SBI Gold Loan.

Loan Amount

The minimum loan amounts the SBI offers to people applying for a gold loan is Rs 20,000 or 20 thousand.

The maximum loan amount for an SBI gold loan is up to Rs 5000000 or 50 Lakhs.

Interest Rates

SBI has extremely client-friendly interest rates so that people applying for SBI gold loans do not have much difficulty while returning the money.

Applicants can now get gold loans from SBI at the cheapest rate of 7.5 percent.

Loan Term

The usual loan term for an SBI gold loan is 36 months. It is 12 months if someone uses the Bullet Repayment option.

A bullet loan does not incur over time and must be returned in one lump sum (also known as a balloon payment) after the loan’s term.

A gold loan is a product that does not require repayment during the loan term.

How to apply for this loan?

1. YONO App

The acronym YONO means “You Only Need One.”

Customers may combine all of their products and services from SBI bank account, SBI Card, SBI Mutual Fund, SBI Life Insurance, SBI General Insurance, and SBI Securities using the YONO App and website.

2. SBI Branch

Going to your local or preferred SBI Branch to get a gold loan is a classic option too.

Foreclosure fee for gold loan- The bank has removed customers’ foreclosure fines and pre-payment penalties.

Purpose of Gold Loan

The sum of a gold loan can be utilized to cover a range of financial obligations, such as schooling, marriages, and health expenditures.

The funds should not, however, be used for investment purposes.

Documents Required during application for SBI Gold loan

  • Completed application form
  • Two passport-size photos
  • KYC documentation to confirm the applicant’s identity
  • Proof of income of the applicant
  • Witness statement in the case of illiterate borrowers.

The following documents are required at the time of disbursement

  • Letter of Arrangement
  • Take Delivery Letter for Gold Ornaments
  • Promissory note of Demand

SBI YONO App

An easy way to apply and get a gold loan from SBI

State Bank of India’s (SBI) own app, YONO You Only Need One), is an automatic finance and accounts that enable customers to access a range of financial and other products such as airline, train, bus, and cab reservations, shopping online, and health plan payments.

YONO is a smartphone app for Android and iOS devices.

Also Read: Muthoot Finance Gold Loan | How to Apply, Documents, Process

Step-by-step method of application for SBI Gold Loan using YONO or You Only Need One Application

1. Fill out a loan application
  • Sign in to your YONO profile.
  • On the main page, click the submenu (three lines) in the upper extreme left corner.
  • Select Loans option
  • Select gold loans from the drop menu
  • Select apply now
  • Fill in the ornament data (kind, amount, carat, and net weight), as well as all other information provided in the drop-down menus (Home Type, Employment Type), and submit the form.
2. Visit an SBI branch with your gold.

Bring the gold to be committed, along with two pictures and your KYC certificates, to the bank.

3. Sign the documents given to you

To confirm any deal, credentials are essential. Sign the document given by the bank to finalize your loan.

4. Receive your loan

Once all your documents alongside your appeal for a gold loan are approved, you will get your SBI Gold Loan.

Also Read: How to get loan from Dhani App | Instant Approval

Conclusion

SBI Gold Loan is one of the best ways of taking a Gold Loan whenever necessary.

It is also convenient and client-friendly, and the YONO app by SBI makes things even more straightforward for users.

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By Kapil Garg

I am a professional Loan and Insurance advisor with an approved license helping people with my services like Loans, Retirement Planning, Investment Planning.

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