Federal Bank Gold Loan Interest Rate 2023
Federal Bank Maximum Gold Loan Amount for Jewel Loan
Federal Bank's Max Gold Loan amount is 50 Lakhs
Federal Bank Gold loan age limit
The Age Limit is from 18-75 years
Federal Bank Gold loan LTV for Jewel loan
The LTV ratio is 75% maximum, capped by the Reserve bank of India (RBI). For example, if you pledge gold worth Rs 1 Lakh, you can get a maximum of Rs 75,000 as Gold Loan.
Federal Bank Gold loan Documents required
- Identity Proof - Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License
- Address Proof - Aadhaar Card, Voter ID, Passport, Driving License, Utility Bill (Phone/Gas/Electricity/Water/Broadband, etc.) / Lease Agreement of a local address that matches the address on your utility bill (in case your permanent address is different from your current residential address)
- Form 60 or PAN Card
- 2 Passport size photographs
Getting a gold loan is a tedious and time consuming process, isn’t it? Well it turns out that we at IndiaGold have a solution for your problem. Now you can get Gold loans at your doorstep.
- 0.77%* Rate of Interest Per month (9.24% Rate of interest per year)
- Doorstep Gold Loan
- Money transfer in just 30 minutes*
- 100% Free Insurance on your gold
Federal Bank Jewel Loan interest comparison with other banks
Axis Bank Gold loan interest rate
Axis Bank Gold loan interest rate is 13.50% p.a. to 16.95% p.a. for amount of Rs.25,001 to Rs.25 lakh
HDFC Bank Gold loan interest rate
HDFC Bank Gold loan interest rate is 11% p.a. to 16% p.a. for amount of Rs.10,000 onwards
Muthoot Gold Loan interest rate
Muthoot Gold Loan interest rate is 12% p.a. to 26% p.a. for amount of Rs.1,500 onwards
SBI Gold Loan interest rate
SBI Gold Loan interest rate is 7.00% p.a. onwards for amount of Rs.20,000 to Rs.50 lakh
Kotak Mahindra Gold Loan interest rate
Kotak Mahindra Gold Loan interest rate is 10.00% p.a. - 17.00% p.a. onwards for amount of Rs.20,000 to Rs.1.5 cr
PNB Gold Loan interest rate
PNB Gold Loan interest rate is 7.70% p.a. to 8.75% p.a. onwards for amount of Rs.25,000 to Rs.10 lakh
Bank of Maharashtra Gold Loan interest rate
Bank of Maharashtra Gold Loan interest rate is 7.10% p.a. for the amount of Up to Rs.20 lakh
Manappuram Gold Loan interest rate
Manappuram Gold Loan interest rate is 9.90% p.a. to 24.00% p.a. for the amount as per the requirement of the scheme
Factors affecting Gold loan interest rates
When it comes to taking out a gold loan, there are several factors that can affect the interest rate you are offered. Here are some key considerations to keep in mind:
Credit score:
Like any other loan, your credit score plays a crucial role in determining the interest rate on a gold loan. If you have a high credit score, this indicates to the lender that you are a lower risk of default and they may be willing to offer you a lower interest rate as a result. On the other hand, if you have a lower credit score, the lender may perceive you as a higher risk and offer you a higher interest rate to compensate for this risk.
Loan to value ratio:
The loan to value (LTV) ratio refers to the amount of loan being offered as a percentage of the value of the gold being used as collateral. If the LTV ratio is high, this means that you are seeking a relatively large loan compared to the value of the gold you are using as collateral. This may result in a higher interest rate, as the lender is taking on a higher level of risk by offering you a larger loan.
Tenure of the loan:
The length of time over which the loan is to be repaid, also known as the loan's tenure, can also impact the interest rate. If you are able to take out a loan with a longer repayment period, this may result in a lower interest rate, as you have more time to pay back the loan. On the other hand, if you opt for a shorter loan tenure, the interest rate may be higher, as you have less time to repay the loan.
Market conditions:
The interest rates on gold loans can be influenced by wider economic factors, such as the prevailing interest rates in the economy and the demand for gold loans. If overall interest rates are high, it is likely that the interest rates on gold loans will also be higher. Similarly, if there is strong demand for gold loans, the interest rates may rise due to increased competition among lenders.
Type of lender:
The institution offering the gold loan can also have an impact on the interest rate you are offered. For example, banks may be able to offer lower interest rates compared to non-bank financial institutions (NBFCs), as they typically have a lower cost of funds and can therefore lend at a lower margin.
Quality and purity of gold:
The quality and purity of the gold being used as collateral can also affect the interest rate on a gold loan. If you are able to offer high-quality, pure gold as collateral, you may be able to secure a higher loan amount and a lower interest rate, as the lender perceives this as a lower risk. On the other hand, if the gold you are using as collateral is of lower quality or purity, the loan amount may be smaller and the interest rate higher.
Repayment track record:
Finally, your past repayment history can also influence the interest rate on a gold loan. If you have a history of timely loan repayment, the lender may perceive you as a lower risk and offer you a lower interest rate. On the other hand, if you have a history of default or late repayment, the lender may offer you a higher interest rate to compensate for the increased risk.
Overall, the interest rate on a gold loan can vary significantly depending on a range of factors, including your credit score, the LTV ratio, the loan tenure, market conditions, the type of lender, the quality and purity of the gold being used as collateral, and your repayment track record. By understanding these factors, you can make an informed decision and choose a gold loan that is suitable for your needs and budget.
Features of Federal Bank Gold Loan
Gold loans can be a convenient and attractive option for borrowers in need of quick access to funding.
One of the main advantages of gold loans is their quick processing time. Because gold is a valuable and easily liquidated asset, financial institutions are often willing to lend against it.
This means that gold loans can be disbursed relatively quickly, often within a few hours or even minutes.
This can be particularly convenient for borrowers who need access to funds quickly, such as in the case of an emergency or urgent need.
Another benefit of gold loans is their relatively low interest rates. In general, gold loans tend to have lower interest rates than other types of loans, such as personal loans or credit card debt.
This is because the use of gold as collateral provides the lender with some level of security, reducing the overall risk of default. As a result, lenders may be willing to offer lower interest rates on gold loans than on other types of unsecured loans.
In addition to quick processing times and low interest rates, gold loans also typically require minimal documentation.
Because the loan is secured by the gold being used as collateral, the lender does not need to assess the borrower's creditworthiness or income in the same way as they would for an unsecured loan.
This means that the process of obtaining a gold loan is generally simpler and requires fewer documents than other types of loans.
Another advantage of gold loans is that they may be accessible to borrowers with poor credit history. In many cases, lenders will base their decision on whether to approve a loan on the borrower's credit score and repayment history.
However, this is not always true. With gold loans, lenders can take into account other factors that may not be reflected in your credit score, such as your ability to pay back the loan or the risk of defaulting on the loan.
Because gold loans are secured by collateral, lenders may be more willing to approve a loan even if the borrower has a poor credit history. This can make gold loans an attractive option for borrowers who may not qualify for other types of loans due to their credit history.
Overall, gold loans offer a range of benefits to borrowers, including quick processing times, low interest rates, minimal documentation requirements, and potential accessibility for borrowers with poor credit history.
While gold loans may not be the right choice for everyone, they can be a useful tool for those in need of quick access to funding.
Federal Bank Gold Loan Repayment schemes:
Bullet repayment:
Bullet repayment is a method in which you pay interest and principal amounts at the end of a gold loan. During the loan term, you are neither required to pay interest or principal; you make one final payment when your loan expires.
Overdraft Facility:
This is a popular service for self-employed people, as the financial requirements of such business people are often variable. Through this service, you can withdraw money according to your own needs.
EMI Facility:
By opting for this option, you can repay the interest amount as per the EMI schedule of the gold loan.
However, you will have to pay back the principal amount borrowed at maturity. This arrangement works wonders for most borrowers as throughout the loan tenure one is only liable for paying interest and not worrying about principal repayment.
Federal Bank Gold Loan process
The gold loan process is very similar to that of other secured loans. In this case, you take your gold items to a lender along with the necessary paperwork. The lender assesses the gold items and confirms the paperwork presented.
The lender approves the loan amount based on the evaluations. According to the loan agreement, you must repay the main amount and the interest amount to receive the pledged gold objects.
Benefits of Federal Bank Gold loan
- Gold loans can be used to fund your child's education.
- It can be useful for expanding business or working capital requirements or to buy a home
- It can be used to buy machineries which can help to improve agriculture efforts
- It can also be used to get a loan at competitive rates with no collateral requirements
- Can be used to fund any urgent emergency needs
- Flexible usage: Gold loans can be used for any purpose and no restrictions on where you can use the money
- Less Paperwork: The entire process from loan application to disbursement, hardly any paperwork is required. At India Gold we disburse your loans in just 30 mins* of the process
How to pay your Federal Bank Gold loan EMI?
There are several options available for paying your Federal Bank gold loan Equated Monthly Instalment (EMI). These include:
- Online payment: You can pay your EMI through the Federal Bank website or mobile app using a debit card, credit card, or internet banking facility.
- Auto-debit: You can set up an automatic payment system to debit your EMI directly from your bank account.
- NEFT/RTGS: You can transfer the required EMI amount from your bank account to the Federal Bank account using National Electronic Funds Transfer (NEFT) or Real-Time Gross Settlement (RTGS).
- Cash payment: You can pay your EMI in cash at any Federal Bank branch.
- Demand draft: You can issue a demand draft in favor of Federal Bank and deposit it at a branch.
- Cheque payment: You can pay your EMI by issuing a cheque in favor of Federal Bank and depositing it at a branch.
It is important to make the gold loan EMI payments on time to avoid default and the associated consequences. If you are unable to pay the EMI on time due to unforeseen circumstances, you should contact Federal Bank and explain your situation. The bank may be able to provide you with an EMI holiday or restructure the loan to make it more affordable for you.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
About Federal Bank
Federal Bank is one of the major commercial banks in India, with a presence in various parts of the country. It was founded in the year 1931, and its headquarters are located in Kochi, Kerala.
Here are some key details about the Federal Bank:
- Products and Services: The bank offers a wide range of products and services to its customers, including savings and current accounts, loans, insurance, credit cards, and other financial products.
- Branches and ATMs: The bank has a network of more than 1,250 branches and 1,800 ATMs spread across India. It also has a presence in the UAE and Oman.
- Digital Banking: The bank has invested heavily in digital banking and offers a range of online and mobile banking services, including mobile banking apps, internet banking, and online account opening.
- Corporate Social Responsibility: The bank is committed to social responsibility and has established the Federal Bank Hormis Memorial Foundation to support charitable causes in the areas of education, healthcare, and rural development.
- Awards and Recognition: The bank has received several awards and recognitions for its services and performance, including the Best Private Sector Bank Award at the Dun & Bradstreet Banking Awards and the Best Bank Award at the Business Today-KPMG Best Banks Awards.
- Leadership: The bank is led by a board of directors, with Mr. Shyam Srinivasan serving as the Managing Director and CEO.
- Financial Performance: As of March 2021, the bank had total assets worth Rs. 1.94 lakh crore, with a net profit of Rs. 1,602 crore. The bank has consistently posted strong financial results over the years and is considered to be one of the leading banks in India.
Overall, Federal Bank is a well-established and respected institution in the Indian banking industry, with a strong focus on customer service, digital banking, and social responsibility.
Types of Federal Bank Gold loan interest rates
Fixed interest:
The interest rate on such loans stays the same throughout the term of the loan.
Reason of Lending:
The interest rate on gold loans is often related to the motivation behind loaning. Banks normally offer lower rates of return for horticultural gold loans.
Floating rate of interest:
The rate of interest on a gold loan is not fixed and it keeps changing. In a gold loan, the EMI is related to the outside benchmarks that are decided by the bank. Since the rate isn’t fixed, the EMI on Gold credit might increase or decrease unexpectedly.
Non Agricultural Gold loans:
Non-agricultural gold loans are made to anyone who is not an agriculturalist. These loans are available to everyone, including salaried individuals, independently employed experts, financial specialists, ladies and females, housewives and students.
FAQs
Can we pay Federal Bank gold loan online?
If you're making monthly payments on your EMI, you can do so online through the bank's website or in person by visiting the branch
How to pay Federal Bank gold loan online?
EMI repayment can be made online through the bank's portal.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
What are the documents required when applying for a gold loan?
- Identity Proof - Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License
- Address Proof - Aadhaar Card, Voter ID, Passport, Driving License, Utility Bill (Phone/Gas/Electricity/Water/Broadband, etc.) / Lease Agreement of a local address that matches the address on your utility bill (in case your permanent address is different from your current residential address)
- Form 60 or PAN Card
- Passport size photograph
What type of gold do you accept for gold loans?
At indiagold, all forms of gold jewellery are accepted, provided it is 18K and above. No gold coins, biscuits, and bars are accepted. The value and purity of gold are measured and assessed by experts and trained valuers.
What are the consequences of missing a payment on a due date?
The interest rates are subject to jumping interest rates if a payment is missed due to unforeseen circumstances.
The consumer will also be contacted by the loan manager to discuss the problem. Hence, indiagold advises making timely payments to take advantage of lower interest rates.
How do I apply for a Federal Bank Gold Loan?
You can apply online from their website or else visit their nearest branch.
Is it possible to get a Federal Bank Gold Loan online?
You can apply for gold loan online, but need to visit the nearest branch. If you are looking for doorstep gold loan, Apply for gold loan at Indiagold.
How long does it take to get a Federal Bank Gold Loan approved?
Generally it takes 4-5 working days for getting your gold loan approved. Get fastest Gold loan approval and get the amount transferred in your account within 30 mins* of the processing.
Can I get a Federal Bank Gold Loan if I have a low credit score?
Yes you can get a gola loan with less credit score, but the interest rate of the loan will be higher as compared to a borrower with low credit score.
Can I get a Federal Bank Gold Loan for a business purpose?
Yes, Gold loans can be used for your business purpose.
