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Written by Site Administrator
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Wednesday, 28 October 2009 10:29 |
The loan offered by banks when you pledge your assets with them is termed as loan against property. By assets, we mean your physical holdings of Gold, yours shares and bonds, your insurance policies, your land/flat or home, etc.
In the case of Gold, you must carry your gold to the bank and surrender it to them. They will weigh it in front of your and will give you upto 70% of the market value per gram as loan for all the gold you pledge.
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Written by Site Administrator
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Wednesday, 28 October 2009 10:36 |
First of all, not all banks are offering loan against gold. For those that offer this type of loan, you must first have a savings account with them. This is for processing your loan. In addition the interest chargeable on the loan and all your loan payments will be chanelled to this account.
In addition to this, you must submit the following document with your application:
- Proof of identity
- Proof of residence
- Proof of ownership of gold
- Photographs
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Written by Site Administrator
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Wednesday, 28 October 2009 10:40 |
Gold loan must be repaid with interest in within one year. In the event that you do not pay the complete amount along with interest at the end of this period, you will be sent notices requesting for payments. This will be followed by a visit from the Bank agent requesting you to make payments. If the bank does not receive any favourable response from you, they will auction the gold to recover the amount due.
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Written by Site Administrator
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Wednesday, 28 October 2009 10:42 |
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What Banks charge anywhere between 10 to 15 percent interest on loan against gold. This interest is compounded annually and is calculated and reflected in your account on a monthly basis. |
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Written by Site Administrator
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Wednesday, 28 October 2009 10:46 |
As it your own asset that you pledged with the bank, you are given the flexibility of paying the amount at your convenience during the on year period.
You can choose pay through electronic clearance (ECS) on an equated monthly installment or through post-dated cheques. Late payments, and defaulted payments during the period of the loan do not attract any fine. Only, the interest is compounded if you don’t repay regular monthly installments.
You are free to pay all the amount at once at the end of the year along with the interest and reclaim your Gold.
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Loan Against Gold/Property
