A loan on jewellery is a loan that you can take against the jewellery that you own. The amount of the loan depends on the weight of the jewellery that you pledge with the bank. The interest rate is calculated per gram of gold, which may vary depending on its purity. The higher the value of the jewellery, the lower the interest rate. Loan amounts can range from Rs. 25,000 to 50 lakhs. You may be able to get special offers or a lower rate if you have a good repayment record with the bank.
ICICI Bank
You can get a no-EMI loan against the gold from ICICI Bank. This loan is available for both personal and business purposes. You can walk into an ICICI Bank branch with the jewellery you wish to sell and get approved for a loan. The process can take as little as a few minutes and you can borrow anywhere from Rs.1 lakh to a crore.
The amount you can borrow depends on the weight and purity of the gold in your jewellery. The interest rate varies depending on the gold content of the jewellery. The maximum loan-to-value ratio (LTV) is 75%, whereas the lower the LTV, the lower the interest rate. In addition to this, the bank offers attractive interest rates and special offers to existing account holders. So, if you need a loan to buy a new piece of jewellery, this could be the best option for you.
HDFC Bank
If you are looking for a loan to pay off a jewelry item, HDFC Bank may have the right loan for you. The bank offers 13 month installment plans and has low interest rates. The bank is also known for its ethical practices and has a code of conduct and ethics manual. HDFC Bank also supports charities and aims to promote sustainable livelihoods for poor families.
The amount you can borrow is based on the value of your jewellery. Depending on the purity of the gold and the loan to value ratio, you may get a higher or lower amount for your loan. Loan amounts can range from Rs. 25,000 to 50 lakhs. You can also take advantage of special offers and lower rates if you maintain a good relationship with the bank.
HDFC Bank also offers personal loan options to people without collateral. This type of loan can be used for agricultural, personal, and business purposes. It has flexible terms, ranging from six to 48 months, and the minimum repayment is Rs1,000 per lac. Another advantage of this loan is that it has a nil-foreclosure fee, a flexible pricing scheme, and a low interest rate. Moreover, the bank has special interest rates for women, the preferred class, and classic class.
HDFC Bank also offers top-up loans for customers with an existing personal loan. These loans have low interest rates and can be applied for online. The bank also has an online EMI calculator. Furthermore, if you have an existing personal loan with HDFC Bank, you can opt for a top-up loan with a higher interest rate.
Conclusion
HDFC Bank also offers gold loans that can be taken out in case of an emergency or other financial need. This type of loan can be used to purchase expensive jewellery items or to finance a specific investment or marketing idea. If you have an existing HDFC Bank account, you can avail the loan for your jewellery. The loan amount is lower than the market value of your gold jewellery and you will have to pay a processing fee of up to Rs 500.
