Federal Bank Gold Loan Interest Rates

It is one of the top private sector banks in the country, Federal Bank, offers gold loans with low documentation requirements and attractive interest rates. You can get a gold loan from Federal Bank to get the money you need right away by using the bank as collateral in the form of your gold jewellery.

Details of the Federal Bank Gold Loan Scheme

Amounts

Rs. 1,000 - Rs. 1.5 crores

Federal Bank gold loan rate per gram

The maximum amount per gram is up to 85% of the gold price.

Federal Bank gold loan interest rate

8.50% 

Repayment Option

Lump Sum or EMI

Tenures

6 months and more

Processing Charges

Varies from one scheme to another

Characteristics of the Federal Bank Gold Loan Scheme

  • Minimum Loan Value: A loan with a minimum amount of INR 1000 is available.
  • Maximum Limit: There is no upper limit for obtaining a Federal gold loan because it is a secured loan.
  • Gold Loan Tenure: A gold loan has a maximum 12-month repayment term.
  • Gold loan interest in Federal Bank: The interest rate on a gold loan from Federal Bank ranges from 8.50% to 12.95%.
  • Federal Bank gold loan per gram rate today: The gold loan rate per gram in Federal Bank fluctuates depending on the purity of the gold and market prices, ranging from INR 1755 to 2145.
  • Storage: After the full loan has been repaid, you can retrieve the gold jewelry you gave the bank as collateral from the bank's safe.

Types of Gold Loan Schemes from the Federal Bank

General Gold Lending, Digi Gold Overdraft, and Agriculture Gold Loans are the three main gold loan programs offered by Federal Bank. Each program has a different loan amount and interest rate.

You should thoroughly research each plan before selecting the one that best satisfies your requirements.

a) General Gold Loan

You can obtain a maximum per-gram rate with the General Gold Loan Scheme, which is up to 85% of the gold price.

Characteristics-

  • Interest rates start at 8.50%.
  • Loan Amount: Maximum: Rs.1.5 crore; Minimum: Rs.1,000.
  • tenure: six to twelve months.
  • Nil processing fee
  • A Pledge of 22-carat gold jewellery will serve as security for the loan.

b) Digi Gold Loan

When you need money, you can use the Digi Gold Loan Scheme to withdraw up to 75% of the gold's worth.

Characteristics-

  • Interest rates start at 8.50% (Interest is charged only for the amount utilized.)
  • Loan Amount: Maximum: Rs.1.5 crore; Minimum: Rs.1,000.
  • tenure: six to twelve months.
  • Processing charge: 0.25% of the maximum.
  • A Pledge of 22-carat gold jewellery will serve as security for the loan.

c) Kisan Gold Scheme

This program is designed especially for small-scale farmers.

Characteristics-

  • Interest rates start at 8.50%.
  • Loan Amount: Maximum: Rs.1.5 crore; Minimum: Rs.1,000.
  • tenure: six to twelve months.
  • Processing fees range from Rs 250 to Rs 1500.
  • PF/Admin Fee: 100 to 1,300 rupees.
  • There are no alternatives or fees for prepayment.
  • Delay in Payment Penalty: 2% applied to all accounts past due by more than Rs. 25,000.

Who is Eligible for the Gold Loan Schemes from Federal Bank?

Anyone who is at least 18 years old and has a reliable source of income may apply for a Federal Gold Loan. The loan is available for agricultural, commercial, and personal use.

Documents Needed to Opt for the Gold Loan Scheme

The list of paperwork you must provide to Federal Bank in order to apply for a gold loan is provided below-

  • If you are an existing client - you won't have to provide any paperwork at all.
  • If you are a new client - you must submit the following documentation:
  • Identity documentation like an Aadhaar or passport
  • a recent photo of a passport
  • Utility bills, a passport, or Aadhaar are examples of proof of address.

How to Apply for the Gold Loan Scheme from the Federal Bank?

There are two main ways to apply for the gold scheme from Federal Bank, and that is-

a) Online Method

You can also submit an application for a gold loan from Federal Bank by going to the Bankbazaar website. You only need to submit the appropriate documents and provide the necessary information. You will then need to provide gold as collateral.F

ollowing that, the bank will examine all of the materials you provided. The lender would deposit the loan amount into your bank account if all of the information you provided is accurate.

b) Offline Method

If you want to apply for a gold loan, go to the Federal Bank location that is closest to you with the required paperwork. If you are an existing customer, you won't need to provide any documentation because the bank will already have everything needed to assist you in obtaining a gold loan. To apply for a gold loan, if you are a new customer, you must provide the required paperwork.

If you want to get a gold loan from the bank, regardless of whether you are an established customer or a new one, you must put up at least 22 carats of gold as security.

Benefits of the Federal Bank Gold Loan Scheme

A gold loan provides rapid assistance in times of need because it enables one to obtain money within a day. Any of the following uses, as well as others, are permitted for the loan-

  • One can obtain a gold loan to pay for a child's schooling.
  • A gold loan can come in handy in times of medical emergency.
  • It may be beneficial for growing a firm or meeting working capital needs.
  • To upgrade agriculture by purchasing equipment for irrigation and other requirements.
  • To obtain a quick loan while travelling.
  • Evokes the idea of exploiting a personal asset to meet your requirements.
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