Bank of Baroda offers a Gold loan at 9.40% p.a. for loans up to INR 50 lakhs and a tenure of up to 3 years. The Bank of Baroda Gold Loan, secured by a minimum of 18-carat gold ornaments, jewellery, or specially minted gold coins sold by the bank, offers a safe and convenient way to secure funds. Gold Loans are the simplest and safest method of securing funds, offering you the ease and convenience of acquiring funds on an instant basis. The funds raised can be utilised for weddings, business expansion, education, etc. There are two types of ranges available with the Bank of Baroda Gold Loan: Agri-Gold Loans to farmers and Retail Gold Loans to individuals.
Discover the Range: Types of Gold Loans Offered by Bank of Baroda
Depending upon the disposition and requirements, the following are the gold options provided by the Bank of Baroda:
- Retail Gold Loan:
The Bank of Baroda offers the borrower a versatile loan option with the Retail gold loan. This loan empowers borrowers to use the funds for a wide range of personal needs. Whether it’s for purchasing a car, paying educational fees, funding weddings, or covering any other additional costs, the choice is in your hands.
Benefits of Retail Gold Loan:
- The loan can be converted into cash instantly.
- There is no need to prove income.
- There is no need for a guarantor.
- CIBIL score is not considered a factor in pricing.
- It requires minimal documentation.
- It provides a quicker processing of loans.
- It provides security for the gold items held as collateral.
- The principal amount will be returned through the “Bullet Repayment Method” at any point during the loan’s tenure.
- Agri Gold Loan:
The Agri Gold Loan is a testament to our unwavering commitment to supporting farmers, including female members, in their agricultural and other fields. With a maximum moratorium term of 12 months, we understand the cash accrual dynamics and offer you the flexibility of choosing repayment options in monthly, quarterly, or half-yearly instalments for loans other than crop loans.
Benefits of Agri Gold Loan:
- It requires minimal documentation as the gold is held for collateral purposes; hence, only identification and address proof are required.
- Income proof is not required.
- It provides you with the option to repay the interest component or pay the principal in a lump sum at the end of the loan tenure.
- As the interest rates are lower than those compared to personal loans, a lot of money can be saved.
- It provides quicker processing and the disbursal of loans.
- The loan can be converted into cash instantly.
- As the loan is secured, it will not have any negative impact on the chances of loan acquisition, even with poor credit history.
- There are quite a few processing fees.
Features of Bank of Baroda Gold Loan
- Purpose: The Bank of Baroda gold loan offers a convenient way for customers to meet all types of personal needs, such as weddings, education, business expansion, etc.
- Minimum Loan Amount: Being a secured loan, the borrower can get a minimum amount of loan starting from INR 25,000.
- Maximum Loan Amount: Being a secured loan, the borrower can get a gold loan amounting up to INR 10 Lakhs.
- Gold Loan Tenure: The repayment period on the Bank of Baroda gold loan is up to 12 months.
- Processing Charges: The borrower must pay 0.50% of the loan amount as a processing fee on the Bank of Baroda gold loan.
- Interest Rate: The interest rate on the Bank of Baroda gold loan is one-year MCLR + strategic premium + 3%.
- Storage: The gold ornaments held as collateral with the bank are stored safely in the bank’s locker and will be returned once the loan is repaid in full.
- Gold Loan Amount per Gram: The gold loan per amount gram ranges between INR 1755 and 2145 and is subject to change based on the market prices and purity of the gold.
Documents Required
Mentioned is the list of documents required to be submitted along with Bank of Baroda Gold Loan:
- Proof of identity– This could be a PAN card, Aadhar card, Driving license, voter’s ID card, or passport copy.
- Proof of address– This could be either an Aadhar card, Driving license, voter’s ID card, passport copy, Landline bill/postpaid bill/water bill/ electricity bill, or rent agreement (along with the most recent owner’s electricity bill)
- Two recent passport-size photos
Interest Rates
Mentioned below are the Bank of Baroda Gold Loan Interest Rate:
| Particulars | Interest Rates (p.a.) |
| Demand Loan (LA180) | 9.40% |
| EMI (LA241) | 9.40% |
| Overdraft (LA043) | 9.40% |
Eligibility Criteria
Mentioned below are the eligibility parameters that are to be met in order to apply for BOB Gold Loan:
- The minimum age of an applicant should be 18 years.
- The maximum age of an applicant should be 75 years.
- The individual must be an Indian resident.
- The eligible candidates are self-employed professionals, business owners, traders, and farmers.
- In the case of a farmer applicant, a certificate of land ownership or any other proof is required.
Bank of Baroda Gold Loan Process
Mentioned below are the steps to be followed in order to apply for Bank of Baroda Gold Loan. But before that, let us go through some checkpoints which are to be considered before applying for the loan:
- The purity of gold is first measured to know the amount of loan that can be raised.
- The market rate of gold is also to be checked well in advance, along with the rate of the previous date.
- The maximum Loan to Value is set at 75% by RBI.
- The processing fees are to be deducted from the loan amount.
- The gold loan is disbursed to the bank account once the final agreement is signed.
Step 1: Open the Bank of Baroda’s official webpage.
Step 2: Go to the tab “Loans”.
Step 3: Under the heading “Gold Loan”, choose “Agri Gold Loan” or “Retail Gold Loan”.
Step 4: Login or sign up for the Bank of Baroda website.
Step 5: Fill out the details and submit the loan application form.
Step 6: Once the loan application is submitted, the bank representative will contact you.
Step 7: To apply for a loan, one can also visit the nearest branch with gold ornaments and relevant documents.
