Bank of India Gold Loan Interest Rate

The details of the current gold loan interest rate in Bank of India are mentioned below:

Below is the comparison of the Bank of India gold loan interest rate with the gold loan interest rates of other lenders. You can check the interest rates of various lenders to see which is the best gold loan bank available in India before applying for the loan.

Following are the key features of Bank of India gold loan:

• Purpose: You can use the Bank of India gold loan to meet financial needs for agriculture, MSME/OPS, retail, or consumption purposes.
• Quantum of loan: There is no minimum limit for the gold loan in the Bank of India. The maximum loan amount available is Rs. 50 Lakhs. You can use the Bank of India gold loan calculator available online to know how much loan amount you are eligible for.
• Security: Borrowers must pledge gold jewellery, ornaments or coins belonging to them. The coins to be pledged should not have a weight of over 50 grams.
• Margin: For agricultural purposes, the margin requirement is between 15% to 35% and for non-agricultural purposes, the required margin is 25% to 35%. The margin requirement is based on the purity of gold and the tenure of the loan.
• Eligibility: The Bank of India gold loan eligibility criteria is simple. Any Individual/Proprietorship Firm that is the lawful owner of the gold jewellery/ ornaments/ coins can apply for this loan. Borrowers must submit the documents required for gold loan in the Bank of India after meeting the eligibility criteria set by the bank.
• Repayment: Principal repayment schedules can be fixed at monthly, quarterly, half-yearly, or yearly instalments or even as a bullet repayment, depending on income generation and/or seasonality of the business.
• Rate of interest: BOI gold loan interest rate varies from 7.25% to 8.90% p.a.
• Processing fee: The processing fee charges on Bank of India gold loan is up to Rs. 125 per lakh (maximum Rs. 1,000), depending on the loan amount to be availed of.

Currently, the Bank of India offers only one type of gold loan, which can be used for Agriculture, Food & Agro, MSME/OPS, and Consumption/Non-Priority activities. Bank of India gold loan interest rate for these activities may vary between 7.25% and 8.90% p.a., and you can avail of a maximum loan amount of up to Rs. 50 Lakhs. You can use the gold loan calculator available online on various platforms to know your BOI gold loan eligibility. 

Gold loan calculator can be found on various online platforms. Bank of India gold loan calculator can be used to know your eligibility before applying for the loan. All you need to do is enter a few basic details like the number of gold ornaments/items to be pledged, their purity (in karat), and weight (in grams).

The online gold loan calculator can help you find out the amount of Equated Monthly Instalment (EMI) that you will be required to pay for the borrowed loan amount. By using this tool, you can try different interest rates and repayment tenure permutations and combinations offered by the bank to make sure you get the best available option.

Following are the charges associated with the Bank of India gold loan:

• Rate of Interest: 
  • 7.25% to 7.55% p.a. for Agriculture
  • 7.35% to 7.65% p.a. for Food & Agro
  • 7.65% to 8.15% p.a. for MSME/OPS
  • 8.40% to 8.90% p.a. for Consumption/Non-priority
• Processing fees:
  • Nil for a loan up to Rs. 1 Lakh
  • Rs. 125 per lakh (maximum Rs. 250) for loan above Rs. 1 Lakh up to Rs. 5 Lakhs.
  • Rs. 125 per lakh (maximum Rs. 1,000) for loans above Rs. 5 Lakhs.
  • Prepayment/ foreclosure charges: Nil.
  • Documentation changes: Rs. 250 onwards.

You can apply for a BOI gold loan either online or offline. For the offline process, visit the nearest branch of the Bank of India and learn everything about the loan scheme. Don’t forget to carry a hard copy of all the required documents. Attach these documents with the filled and sign gold loan application form available in the bank itself. You will also have to wait for the gold evaluation, after which the loan amount, interest rate, and tenure of repayment will be decided by the bank. On loan approval, the amount will be transferred to your registered bank account.

If you are applying online for gold loan, you have to visit the official website of the Bank of India and access the gold loan application form. Then fill in the required details correctly and completely in the form and apply. If your application gets approved, you will be called for a gold evaluation. If you are eligible for the loan, the approved loan amount will be disbursed within a few hours directly to your bank account.

Bank of India offers its customers customized jewel loan plans according to their repayment capacity. Below are some important reasons why you should apply for a jewellery loan with Bank of India:

• Bank of India is well known for quick processing of the gold loan application.
• The loan can be utilized for various personal and business financial needs. 
• The bank has a fast disbursal process. You can avail of the funds in a day or even less.
• The documentation procedure for BOI gold loan is simple, and a jewellery bill may not be necessary.
• Bank of India has a supportive customer care management team which answers any queries in real-time.
• All costs and charges of the loan are upfront. There are no hidden fees.
• BOI gold loan interest rate is very competitive and starts from as low as 7.25% p.a.

The gold loan interest rate is a crucial factor that impacts your budget and finances. Therefore, it is vital to understand the interest rate calculation as well as the factors that lead to its fluctuation. Below are some critical factors that can have an impact on BOI gold loan interest:

• Benchmarking: Benchmarking of gold loan rates can be of two types, i.e. MCLR linked lending rate and Repo Rate lending rate. Your preferred lender may choose any of the two benchmarking rates. The gold loan rates change when the RBI changes its repo rate or when the lender changes its MCLR. If the interest rates are linked to the repo rate, your loan EMIs will change every three months. MCLR-based gold loan rates change every 6 months or a year.
• Principal loan amount: The quantity, as well as the quality of the gold to be pledged, will have a direct impact on the loan amount you get. Loan-to-value ratio (LTV) is the proportion of your gold's value against which the lender will provide the loan. According to the RBI mandate, the LTV should be between 75% to 90%. The loan amount sanctioned to you plays an important role in determining the interest rate on loan. A higher loan amount often results in an increase in interest to be paid by the borrower.
• Monthly income: Lenders will review your monthly income before approving your loan application at the subsequent interest rate. That is because your income has a direct impact on your ability to repay the borrowed loan amount. Usually, a higher income improves your chances of getting a lower gold loan interest rate.

To be eligible for a BOI gold loan, you have to meet the following gold loan eligibility criteria:

• You should be aged at least 18 years old.
• You must own gold, gold ornaments or gold coins that are to be mortgaged with the bank for the loan.
• You should have a regular income source.

Following is the list of documents required for gold loan in Bank of India:

• Duly filled in and signed gold loan application form
• Recent 2 passport size photographs
• Proof of identity like Passport, Voter ID card, Driving license, Aadhar Card, PAN Card, Government issued ID card, etc. (any one).
• Proof of address like Bank Statement, Latest Electricity Bill/ Mobile Bill/ Telephone Bill, Latest Credit Card statement, Lease Agreement of existing house, etc. (any one).
• Proof of income such as latest Salary Slip, Form 16, Income Tax Returns of last 2 financial years, etc.

• Valuation of your gold to be pledged determines the loan amount.
• Make sure you apply for a gold loan with a credible lender, as your gold has to be deposited with the lender. 
• Look at the various repayment options and choose what suits you the best.
• Always check interest rates and processing charges of different lenders before applying for the loan.
• You have the option to pay back the loan on an EMI basis along with interest. This option is ideal for salaried individuals who receive payments every month.
• Check out the overdraft facility as well. Here, you will be given an overdraft facility against your gold. You will have to pay interest only on the amount used. This option is ideal for self-employed as well as salaried individuals.