What is a Gold Loan?
Andhra Bank offers Loan Against Gold to the people who are engaged in Agricultural as well as non-agricultural activities. It is an attractive loan option through which every person whether he is jobless or with bad credit may acquire money through Andhra Bank Gold Loan. It is a loan that can be used to achieve instant money with 75% of the gold value. Andhra Bank has different gold loan schemes one of them is "AB Swarna Loan Scheme" especially for Non Agricultural Gold Loan (NAGL)
segment under which they will provide following facilities to the borrowers who required short term loans:
- Rate of interest @ 12.90% p.a. fixed, if the loan is repaid within 6 months from the date of disbursement.
- If the loan is not closed with interest within a period of 6 months, the borrower will however have an option to continue the
loan up to 1 year with normal rate of interest i.e., @ 14.75% fixed from the date of disbursement.
- Loans to be granted maintaining margin as per extant guidelines against the security of gold jewellery and gold coins.
APPLY FOR GOLD LOAN
Why Andhra Bank Gold Loan?
- Loan quantum of Rs 50,000 lakhs is available.
- Repayment: Maximum of 60 EMI's are required.
- Third Party is acceptable to the bank.
- Instant availability on the same day.
- Enjoy fewer hassles.
- No pre-closure charges are involved.
- No credit history is required.
- 50 % of margin is available.
Andhra Bank Gold Loan Interest Rates Apr 2018
|Andhra Bank Gold Loan Rate||10.40% onwards|
|Processing Fee||Nil processing fees|
|Loan Tenure||3 months to 12 months|
|Loan Amount||Rs. 10,000 to Rs. 2 Cr|
|Gold Loan Scheme||Bullet Repayment Scheme|
Andhra Bank Gold Loan Details
If you are planning to take a Loan against Gold from Andhra Bank, you need to know the following details of its gold loan schemes:
- Purpose of Gold loan: To meet personal and business expense requirements
- Collateral: Loan against security of your gold jewelry.
- Type of Gold Accepted: Gold jewelry or gold coins of up to 50 grams with a purity of 18 to 22 carat
- Customer Segments: Andhra Bank offers jewel loans to all individuals above 18 years of age including salaried, self-employed professionals,
businessmen, students, pensioners and housewives
- Gold Loan Features
- Andhra Bank Gold Loan Interest Rate starts from 10.40% to 0.00%
- Andhra Bank charges a processing fees of Nil processing fees
- Loan Tenure of Gold Loan ranges from 3 months to 12 months
- Lowest EMI per lakh on Gold Loan from Andhra Bank is Rs. 8,810 offered at the lowest interest rate of 10.40% at the longest loan tenure of 12 months
- Andhra Bank allows prepayment of jewel loans with Nil charges
- Documents Requirement: Only basic KYC documents for address proof and income proof required.
The bank doesn't require you to submit your income proof or doesn't check your CIBIL score for approving a gold loan.
- Popular Gold Loan Schemes of Andhra Bank
How can I get a Gold Loan from Andhra Bank ?
You can apply for a gold loan with Andhra Bank directly through branch walk-in or by filling an online application form. However, to get the best gold loan rate offers and comparison of all banks, you can apply online through MyLoanCare. MyLoanCare will give you a detailed comparison of gold loan schemes of all banks, calculate your gold loan eligibility and connect you to the best bank for gold loan. Customer representatives of bank will get in touch with you instantly to fix up an appointment for branch visit. You will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting loan is smooth, convenient and quick. You can get gold loan in a single branch visit during which Andhra Bank will do an appraisal of your jewellery in terms of its purity and weight. In case,
the jewelry meets the bank standards, the bank will sanction your loan and give you an instant loan against the security of your gold jewelry.
Andhra Bank Gold Loan Interest Rate Calculator
Lowest Gold Loan Interest Rate in Andhra Bank is 10.40%.The factors that are used by
Andhra Bank to calculate interest on gold loan are loan amount, loan tenure and loan required as a percent of value of gold jewelry. Andhra Bank's existing account holders get gold
loan at best rates compared to other customers.
Loan Amount: The amount of gold loan you can avail depends on the weight of jewelry you can pledge with the bank. Generally, banks offer a jewel loan per gram of gold which differs by the purity of gold and loan to value ratio offered.
Banks offer lower interest rates for higher amount. Andhra Bank offers loan between Rs. 10,000 and Rs. 2 Cr amount.
- Relationship with the Bank: Andhra Bank offers special rates, offers and charges to the existing account holders of the bank.
Those who have made their payments on time in the past can get the benefit of low gold loan interest rate from Andhra Bank.
- Loan tenure: Many banks charge higher rate of interest for gold loans of lower
tenure and lower interest rate for gold loans of higher tenure. Andhra Bank offers gold loan with a tenure of 3 months to 12 months.
- Loan to Value ratio: Maximum gold loan to value of gold jewelery ratio on gold jewelry has been fixed at 75% by RBI.
However, Andhra Bank also offers loans at lower LTVs. Interest rate on loans with lower LTV will be lower compared to loans with higher LTV. Maximum LTV offered by Andhra Bank is
75% calculated on net weight of gold in your jewelry.
- Purpose of Loan: All banks, including Andhra Bank also offer gold loan for agricultural purposes at
low concessional rates, as the same is counted under priority sector lending targets of the bank. Andhra Bank's gold loan interest rate for agricultural loans is generally lower by 1-2% compared
to its gold loan rate for regular customers.
Other Charges of Gold Loan Andhra Bank
In addition to interest rates, Andhra Bank also carry some other charges while offering gold loan which include:
- Processing fees :Andhra Bank charges minimum processing fees Nil processing fees. To get lowest fee, gold loan interest rates comparison, offers and cashback apply online through MyLoanCare.
- Prepayment and foreclosure: Banks allows prepayment of gold loan and typically levy prepayment or foreclosure charges i.e. Nil.
Documents Required for Andhra Bank Gold Loan
The documentation process of Andhra Bank is smooth. You need to submit one proof of identity and one proof of address to get a gold loan.
The list of identity and address proofs is as follows:
- Identity proof: PAN Card, Driving License, Passport, Voter's ID Card, Aadhar Card
- Address proof: Voter's ID Card, Aadhar Card, Rent Agreement, Utility Bills, Bank Statement
- The Andhra Bank loan is available to existing customers of Andhra Bank.
- The loan can also be availed of by individuals who are identified properly as an accepted customer as per the KYC-AML guidelines.
- Existing customers need to adhere to KYC norms as well.
The Andhra Bank Loan Against Gold entails minimum hassle if the application process is done correctly. Ensure you check with the
bank about any updated details and new interest rates.
Fees and Charges
||Interest 11.40% p.a.
|Processing Fees|| Nil|
|Appraising Charge|| 1% of the loan amount|
|Prepayment Charge|| Nil|
Andhra Bank Gold Loan Procedure
- Apply Online on any Financial Portal.
- Get your gold to any Bank.
- They will evaluate the value of your gold in terms of purity and weight.
- If your gold found to be genuine, you can avail the loan amount within 30 minutes.
- You will get 100 % safety of your gold.
* For any assistance regarding Gold Loan, call us on 60011600, our trained Relationship Managers will solve all your queries.
Andhra Bank Gold Loan Calculator Formula
Andhra Bank Gold Loan EMI depends upon loan amount, interest rate and loan tenure.
Loan Amount: Andhra Bank Gold Loan amount ranges from Rs. 10,000 to Rs. 20,000,000. High loan amount leads to high amount of EMI
Rate of Interest: Andhra Bank gives Gold Loan at an interest of 10.40% to 0.00%. Lower the rate of interest, lower will be your Gold Loan EMI
Loan Tenure: Tenure of Gold Loan depends upon the borrower's current age and his retirement age. Andhra Bank offers Gold Loan for a minimum tenure of 3 months up to 12 months.
Higher the loan tenure, lesser will be the EMI
EMI Calculator Andhra Bank calculates EMI using below formula:
Emi Calculator Formula
Where, P = principal loan amount
r = rate of interest per month [i.e.">r = Rate of Annual Interest/ (12*100)]<
n = Loan tenure per month
Suppose, Andhra Bank gives you Gold Loan of Rs. 1,00,000 at 10.40% for 12 months.
For this, r = 10.40/12*100 = 0.00867
Then the monthly Gold Loan EMI of Andhra Bank is 1,00,000 *0.00867* (1+0.00867 )^12 /([(1+0.00867)^12 ]-1)
EMI = Rs. 8,810