Gold has been one of the most common assets that people in our country use to recover from financial hardships by taking money against it. The modern and organized form of this process is known as Gold Loan. Nowadays, there are several banks and Non-Banking Financial Companies (NBFCs) that provide a required loan amount to customers who are in need of money against their gold ornaments and coins. Indian Overseas Bank (IOB) is one of the leading public sector banks of India that also provide Gold Loan to customers. But what is the reason behind the popularity of IOB Gold Loan among people?
Well, there cannot be one reason as there are many. Some of them are a wide range of schemes, affordable interest rates, flexible tenure, higher loan amounts, etc. One of the best things about the IOB Gold Loan is different types of customers can choose a Gold Loan according to their repayment capacity. So, what are these types of schemes that customers can opt with IOB Gold Loan? Well, we will cover all of this in this article and other things such as Eligibility, Documentation, etc. So, keep reading.
Prominent Features of IOB Gold Loan
To know the reason behind the popularity of IOB Gold Loan, it is important to know about the features that customers usually enjoy. So, let’s get to it.
- As we said earlier, the best thing about an IOB Gold Loan is the wide range of schemes for different types of customers. There are mainly five types of schemes that a customer can opt for according to his or her need or repayment capacity – Agricultural Jewel Loan, Agricultural Jewelry Term Loan, Jewel Loan SME, Jewel Loan for Others, and IOB Swarnalakshmi.
- In any case of Loan, the most important thing is the interest rate as it decides your repayment amount. IOB Gold Loan interest rates range from 10.20% to 10.70% per annum. But do remember the final rate of interest will be decided by the lender and may vary according to the loan amount and credit score of an applicant. An individual with a good credit score can get lower interest rates and vice versa.
- Coming to the loan amount, IOB provides as much as INR 25 lakh as the loan amount against your Gold. But it directly depends on the overall gold price you are pledging. Higher will be the overall prices, higher will be the loan amount and vice versa. So in a situation when Gold Prices are high, consider it as the right time to opt for a Gold Loan.
- The repayment period ranges from 12 to 36 months that customers can choose according to their income and repayment capability.
- When we talk about the IOB Gold Loan Repayment options, there are three repayment options that customers can choose from. These are Interest Payment at Fixed Intervals (Monthly, Quarterly, Half Yearly, Yearly), EMI Payment, and Bullet Repayment. A customer can choose any method accordingly.
- Since there are different kinds of schemes for customers, a person can choose the most suitable scheme for him or her accordingly. For example, IOB Swarnalakshmi is the type solely designed for women customers with which they can get a loan amount upto INR 5 lakh.
What is the IOB Gold Loan Eligibility Criteria?
Since IOB Gold Loan is a secured loan and customers don’t need to fulfill any hard rules to get the loan amount. However, there are a few conditions that an individual needs to fulfill to get the desired loan amount. We are showing them below. Have a look.
- For the IOB Swarnlakshmi Scheme, the age of women borrowers must be 18 years to be eligible.
- The purity of Gold is quite important to get a higher loan amount and it should range from 20 to 22 karat.
- It is important for an individual to have a stable source of income to have a smooth repayment track.