Gold mortgage rate of interest: A god variety of banks supply gold mortgage however whereas going for this type of mortgage finance, one should observe {that a} financial institution can supply as much as 75 per cent of LTV (mortgage to worth) ratio of 1’s gold. Means, if you’re mortgaging gold price ₹1 lakh in financial institution, then you possibly can stand up to ₹75,000 gold mortgage in opposition to your gold. So, one should make sure that how a lot mortgage is getting sanctioned and what’s the LTC ratio of 1’s gold getting mortgaged. Other than this, completely different banks levy completely different rate of interest on their provided gold mortgage. So, this is a crucial issue whereas opting gold mortgage from a financial institution.
Right here we checklist out 5 banks that supply least expensive gold mortgage rate of interest:
1] State Financial institution of India (SBI): As per the SBI web site — sbi.co.in, gold mortgage rate of interest at SBI is 7.30 per cent every year. An applicant can stand up to ₹50 lakh mortgage for a tenure of three years. Whereas processing one’s gold mortgage, SBI expenses 0.50 per cent processing payment of the mortgage quantity plus GST. The minimal GST that SBI expenses whereas processing gold mortgage is ₹500.
2] Punjab Nationwide Financial institution or PNB: The PSU financial institution is providing gold mortgage at beginning rate of interest of seven per cent. The utmost gold mortgage rate of interest levied by PNB is 7.50 per cent.
3] Canara Financial institution: This state-owned financial institution is providing gold mortgage at an rate of interest of seven.35 per cent. It levies a processing payment from ₹500 to ₹5000, relying upon the gold mortgage quantity.
4] Punjab & Sind Financial institution: This financial institution is providing gold mortgage at an annual rate of interest starting from 7 per cent to 7.50 per cent. Minimal processing payment charged right here is ₹500 whereas most processing payment charged by this financial institution is ₹10,000.
5] Union Financial institution: This state-owned financial institution is providing gold mortgage at an annual rate of interest of seven.25 per cent to eight.25 per cent. The PSU financial institution web site is silent on processing payment concerned whereas processing one’s gold mortgage.
6] Financial institution of Maharashtra: This financial institution is providing gold mortgage at a gorgeous annual rate of interest of seven per cent. It expenses processing payment from ₹500 to ₹2000 together with GST.
So, gold mortgage rate of interest levied by the Financial institution of Maharashtra is least expensive among the many main banks in India and it’s charging an affordable processing payment as nicely. Nevertheless, gold mortgage rate of interest at SBI, PNB and Canara Financial institution can be affordable however their processing payment makes them barely dearer than the Financial institution of Maharashtra.
Supply: Live Mint