Rupeek Gold Loan Interest Rate

Yes, Rupeek is RBI registered.

Before taking a gold loan, you need to pay attention to below points -

From where you can borrow

• You can avail a gold loan from banks or NBFCs. The terms and conditions vary from one lender to another. Currently, only banks have been permitted an LTV of 90%, while NBFCs can still only lend up to 75%.

Loan amount

• Besides the LTV ratio, your loan amount depends on the purity and valuation of your gold. This simply means that higher the purity of gold, higher the loan amount. So you will be given a loan if the purity of gold is 18 Karat or higher.
• Do note that gems and stones are not accounted for in the valuation of your gold. You can get a gold loan only if your gold bars, coins and bullion are within 50 grams. For instance, if your gold is worth Rs 1 lakh, you will get a loan of up to Rs 90,000.

Loan tenure

• Gold loan is given for a short duration, which usually ranges from a year to 36 months.

Interest rate

• The interest rates for gold loans vary from lender to lender. They are slightly lower than personal loans and range between 9-29%.

Repayment terms and foreclosure charges

• The repayment terms are different for different banks. While some lenders allow you to opt for the equated monthly installment (EMI) like a regular loan, others may ask you to pay the interest upfront and principal later. Many lenders also allow you to pay both interest and principal amount together.
• You can also avail the gold loan as an overdraft and use it as per your requirement, just as you would a credit card. Bullet payment is also allowed by some banks at the end of the gold loan tenure.
• Since it is a shorter-duration loan, factor in the availability of funds and understand the repayment process before going for this option. You can foreclose your loan if you want; however, some banks may charge up to 1% of your outstanding dues.

The interest rate depends on the purity and quantity of gold that you are pledging into the bank or financial institution.

A gold loan only requires you to submit KYC documents for verification before the loan can be processed and disbursed. This includes ID proof and address proof, which can be a driver’s license, Aadhar card, voter ID, PAN card, or passport. Along with this, a utility bill or lease agreement must be provided.

The maximum tenure for Rupeek Gold Loan is 12 months