How to apply for HDFC Gold Loan?
- You can apply for a Gold Loan with HDFC Bank directly by visiting the nearest branch
- You can also apply through the official website of the bank by filling an online application form. On completion of the application form and submitting online, the representatives of the bank will get in touch with you and help you complete the process.
- Alternatively, you can call the HDFC Customer care request for a call back or SMS. You will either get a call or SMS from the bank's representatives and they will take you further from there.
What are the components that decide the value of the security offered?
The purity and weight are the two components that decide the value of the security. The purity of the gold accepted as security is 18 carats to 24 carats. The higher the purity the better the rate per gram will be. Gold coins only up to a weight of 50 grams can be accepted as security for a Gold Loan as per the guidelines of RBI.
How is the EMI calculated for HDFC Bank Gold Loan?
The formula to calculate Gold Loan EMI is EMI = {P x R x (1+R)^N}/{(1+R)^N-1}
In this formula:
EMI is Equated Monthly Instalment
P is principal or the sanctioned loan amount
R is the Rate of Interest. Interest should be the monthly rate
N is the tenure
What happens when the gold rate falls during the tenure of the loan?
HDFC obtains an application form wherein a declaration will be given by the borrower that in the event of a fall in the gold rate during the tenure of the loan bank can, with 7 days' notice stipulate for additional collateral security to accommodate the LTV requirement.
In the absence of additional security, the borrower can pay the amount required to accommodate the LTV requirement.
If the borrower fails to do either of the two then the bank has the authority to auction the security and adjust the proceeds towards the outstanding balance.
What is the advantage of HDFC Gold Loan?
The advantage of HDFC Gold Loan is that it offers varied repayment options and the customer can choose the option that is convenient. Repayment can be either by way of EMI wherein a stipulated amount as per the affordability of the borrower can be paid. The other option is payment of interest as and when due and the principal to be paid in a lump sum at the end of the tenure.