Gold Loan — Interest Rate
Comprehensive details on our competitive gold loan interest rates, scheme categories, and repayment structures.
Interest Rate Structure
Our base rate of interest is 12 percent. However, depending upon how high the Loan to Value (LTV) is, additional interest (amounting to risk premium) ranging from 4–8 percent is charged over and above the base rate. The interest and risk premium is applicable only for the days the money was actually utilised. There are no prepayment penalties.
Simple interest is charged, which the borrower has to pay at the specified periodicity or at the closure of loan, whichever is earlier. The interest rate is fixed and calculated on a reducing balance basis.
Gold Loan Interest Rate Sheet
| Scheme Category | LTV Range | Base Rate | Risk Premium | Effective Rate |
|---|---|---|---|---|
| High LTV Scheme | 70% – 75% | 12% | 6% – 8% | 18% – 20% |
| Standard Scheme | 55% – 70% | 12% | 4% – 6% | 16% – 18% |
| Low LTV Scheme | Up to 55% | 12% | 0% – 4% | 12% – 16% |
Gold Loan Schemes
Our gold loan schemes fall broadly into two categories:
A) High Loan to Value
These schemes offer the maximum amount of loan per gram. At the same time, in keeping with the extra risk, the interest cost to the borrower is higher. Suitable for borrowers needing maximum liquidity against their gold holdings.
B) Low Interest Rate
In this category, the interest rates are lower but the Loan to Value (LTV) is also comparatively less. Ideal for borrowers who can provide higher collateral coverage and seek lower cost of borrowing.
Tenure & Repayment
Gold Loan products have a maximum tenure of one year. However, depending upon how high the LTV is opted, members are required to service the interest at specified periodicities. For example, in schemes where LTV is high, interest would have to be serviced monthly.
Guaranty & Security
We know that these gold ornaments are very precious and favorite to you. So we guarantee you that it will be in our safe hands in strong cash safes inside a strong room built as per the standards and specifications applicable to non-banking financial companies. The pledged gold ornaments are also insured for full value. Moreover, security personnel and modern electronic surveillance technology are deployed to protect your beloved gold ornaments.
The most important things from the member's perspective are transparency, security, and choice of loan product to suit individual requirements. Transparency would help the member see for himself what he gets in return for what he pays. There should be no hidden costs and no nasty surprises.
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