Kerala Gramin Bank Gold Loan Interest Rate – Charges, Eligibility & Complete Guide

Key takeaways: 

• The Kerala Gramin Bank offers you three schemes of gold loans. They are agricultural gold loans (AGL), Suvarna Term Loans, SVOD-KGB SUVARNA(OD), KSMGL, GL18 and Easy Gold Loans (EGL). 
   
• You can apply quickly at Kerala Gramin Bank to get your gold appraised and your loan disbursed fast without affecting your credit score.
   
• you can enjoy transparent fees  with minimum  appraiser charges. Also, you can easily maintain your loan by knowing what penalties apply in case of any missed requirements. 

Bonus tip- 

Rebate offer of 2.1% on the interest of 9.30% (EGL) will be provided by the bank at the time of closure based on the repayment conditions. 

Think of Kerala Gramin Bank as a fire extinguisher for your financial problems. Imagine  you are a business owner and one day an unexpected order came up. You do not have enough money to get the raw material. You have some gold jewellery in your locker which can be used to apply for a gold loan. You can use your gold jewellery like a security deposit and get an instant gold loan amount. 

Lets understand this with the help of an example: 

If you pledge 50 grams of gold and the 1 gram rate of Kerala Gramin Bank is fixed at ₹ 5,500. You will instantly get ₹ 2,75,000.  At an interest rate of  9.60%, your monthly interest cost will be ₹ 2,200. 

What is the eligibility to apply for a gold loan at Kerala Gramin Bank?
 

The following is the eligibility criteria to apply for a gold loan at Kerala Gramin Bank:

1. you should be above 18 years of age.
2.  you should own gold ornaments or jewellery that can be pledged.
3.  you should have a regular income so that you can repay the loan.
4.  if you have any savings or current account with the bank. This is an optional eligibility criteria.

It is important to have a look at the eligibility criteria before applying for a gold loan at Kerala Gramin Bank.

What is the current gold loan interest rate breakdown at Kerala Gramin Bank? 

Below are the types of gold loans available at Kerala Gramin Bank along with the complete breakdown of the interest rate: 

Use the above information to know the best gold loan option before applying for one.

Conclusion: 

Choosing between the Kerala Gramin bank gold loan interest rate and the federal bank gold loan interest rate often comes down to your needs. Kerala Gramin bank offers a local approach with specifically designed schemes for farmers and small scale businessmen. On the other hand, federal banks offer a high tech digital integration. 

Overall, understanding the kerala gramin bank gold loan 1 gram value and staying consistent with the loan repayment to avail the rebate offer, you can use your gold into a powerful tool for growth.

FAQs:

1- What is the calculation process for using a gold loan as collateral for another loan?

To use a gold loan as collateral, the lender assesses the gold’s value based on 75%-90% of its current market value. This total amount and the gold’s quality determine the loan eligibility. 

2 How is the loan amount decided for a gold loan? 

The gold loan amount is decided by 75% of the market value of your gold. For example, if your gold is valued at ₹1,00,000 and the lender offers 75% of LTV ratio. You will get a gold loan of ₹75,000.

3- Can I take a gold loan against gold coins and just renew by paying interest? 

Yes, you can take a gold loan against gold coins. To renew the same by paying interest, there are some latest guidelines by the RBI. Under the updated rules, you have to clear the loan amount as well as the interest in the agreed time period. But many local banks like Kerala Gramin bank allow you to pay the interest and renew the loan beyond the agreed time period. 

4- What are the best places to get loans using your gold as collateral? 

You can get a loan by using your gold as collateral from Banks, NBFCs , co-operative and Gramin banks, local societies. 

5- How much loan will Kerala Gramin bank give for 1 gram of gold? 

Kerala Gramin Bank calculates your gold loan based on the market value of gold per gram and then applies 75% of gold value (Loan to ration value).