HDFC Bank Gold Loan

HDFC Bank, also known as Housing Development Finance Corporation, was established in 1994 and was the first private bank to be authorized by the RBI. HDFC is one of the most reputed banking institutions in the country and has an extended network of several thousand branches and innumerable ATMs across the nation. Such an extensive network of branch offices is impressive and speaks of the bank’s position in the banking industry.

HDFC is also one of the first private banks to offer gold loans in India. HDFC Bank has an exhaustive list of products including home loans, gold loans, auto loans, two-wheeler loans, personal loans, and education loans.

HDFC gold loans are easy to avail, easy to afford, and available to a large pool of customers. mymoneykarma gives you all the information you need on the gold loan offered by HDFC Bank.

HDFC Gold Loans                         

Sometimes you need funds urgently. Perhaps it is for a medical or financial emergency. Perhaps it is a planned step to boost your business in the lean months of the year. Maybe you wish to find your child’s education. Whatever your need is, gold loans can help you.

What is a gold loan?

Gold loans have existed throughout history In India. People would give their gold jewelry as a security in return for a loan, which they would pay back with interest to redeem their jewelry. Such a measure is beneficial for both the lender and the borrower. Back then, there were only local moneylenders available for borrowers.

Today, we have banks that offer timely loans to customers at attractive rates. HDFC Bank is one of the largest private banks in the country, and provides help to millions through its loans. And one way the bank does so is through gold loans.

Now, you can certainly go to a HDFC bank branch and ask for a loan. But that is more of a hassle. What if the loan is not approved, or what if your gold amount is not enough? It is far better to be sure from the beginning, right? 

This is where companies like mymoneykarma come in. We act as a liaison between you and the bank. We make the entire process of loan sanction easier for you, so that you have more chance of getting the loan sanctioned. You can apply for a Gold Loan through us right away!

HDFC Bank Gold Loan Features and USP

OTC Spot Loan: You get spot sanction over the counter product. This means that if you visit a bank’s branch for an over-the-counter gold loan product, it shall be sanctioned on the spot.

Safe and secured: You may think that giving away your jewelry to banks for safekeeping is not actually safe. However, it is very safe. Banks like HDFC provide you with a unique triple layer security packing for your valuables. These are kept safely in the bank’s locker.

Assessment and handling of jewelry by professional assessors: Handling and assessment of your gold jewelry deposits are done by professionals. They have long years of experience in this field. Thus, your valuables are in good hands, literally.

Minimal Documentation: All you need to give or submit is your application form and your KYC documents. These include your PAN card and KYC documents like your passport, voters ID, driver’s license and Aadhar card. Apart from your PAN card, you can provide them with any one of the rest.

Flexibility of plans: There are many gold loan plans for you, including term loans, bullet payments, and overdraft.

Insurance: You have the option of covering your loan with insurance, if you so want.

Why should you get a gold loan through mymoneykarma?

You get a ton of benefits when you are a customer of mymomeykarma and desiring a gold loan. Here are those benefits.

• There are no financial requirements for loans till Rs. 15 lakhs.

• You get loans till 75% of your gold jewelry value.

• Only the interest needs to be serviced.

• Bullet payments, term loans and Overdraft options are available for our customers

• The fastest TAT or turnaround time is 45 minutes for term loan, and for OD it is just 1 day. You will need to visit the bank only once at this stage.

• You get attractive ROI when you pay with interests

• Customer’s valuables get a unique 3-way sealing to ensure safety

• Part payment is allowed after 3 months. There are no FC charges for Tl and OD.

What you can give to get an HDFC Gold Loan

Gold jewelry- These should be between 22 carats and 18 carats.

Loan against sovereign gold bonds- Sovereign gold bonds both in physical and demand forms are accepted.

The Loan to Value ratio of 75% of the valued amounts as is prescribed by the RBI. 

What you cannot give to get an HDFC Gold Loan

Gold bars, vessels, utensils and single mangalsutras are not accepted.

Who can take an HDFC Gold Loan?

Individuals- This includes salaried, self-employed, and house wives who seek short-term funding

Individuals who need funding for their business, or need working capital or for personal needs

Agriculturists and farmers in rural and semi-urban areas for seasonal capital needs

Individuals associated with horticulture, agriculture, poultry, fisheries and with animal husbandry.

How much credit score will you need?

As you will see below, there are three types of gold loan products which HDFC Bank provides. Each of these has separate requirements for credit score. For instance, in case of overdraft, you need anything greater than 500. However, if you need higher amounts, it is safer to have a score of 750.

HDFC Bank gold loan charges

Fees	Charges
Loan processing charges	1.5+GST
Valuation fee	Rs. 250 for loan till Rs. 1.5 lakhs and Rs. 500 for loans more than Rs. 1.5 lakhs
Foreclosure charges	2%+ GST if closed within 3 months.
Charges for late payment of loan	2% per annum over and above the applicable rate of interest
Stamp duty and other statutory charges	As applicable by the state
Renewal processing fees	Rs. 350 + GST

 

HDFC Bank interest rate for gold loan

Minimum rate of interest- 10.05%

Maximum rate of interest- 17.95%

Average rate of interest- 11.61%

HDFC Bank Gold Loan APR

Minimum APR- 10.05%

Maximum APR- 27.74%

Average APR- 11.89%

HDFC Gold Loan product variation and comparison

	Term loan	Overdraft
Loan amount	Minimum Rs. 25k and Maximum Rs. 3.5 crore	Minimum is Rs. 2 lakhs and maximum is Rs. 3.5 crores	Minimum is Rs. 25k and maximum is Rs. 19 lakhs
Repayment	Monthly interest needs to be given during the loan tenure.	Only the interest is to be given on the used amount of the loan	Interest and principal are to be paid at the end of 12 months
Income Documents	Not needed till Rs. 15 lakhs loan	Not needed till Rs. 15 lakhs	Agri proof is needed as per RBI PSL classification
Target Segment	Anyone seeking urgent monetary requirement or without income documents	All self-employed people who have irregular cash flow and have seasonal capital requirements.	Only for those associated with business in agriculture and its ancillary PSL classifications.
FC and part payments	After 3 months of part payment is allowed by the bank. There is no FC charge.	After 3 months, part payment is allowed and there is no FC charge.	There is no FC charge after 6 months.

HDFC Bank Gold Loan Overdraft

What is an overdraft?

An overdraft is when you borrow more money than the amount in your bank account. In the case of HDFC Bank Gold loan, you are allowed by the bank to withdraw a certain amount as overdraft. This is your gold loan. 

Features:

No income documents needed

The overdraft limit is set within 1 day

Anytime liquidity feature

You have to give interest only on the amount you use

Benefits:

No upper cap

Minimum overdraft limit is Rs. 2 lakhs

This is for working capital needs

PB/ABM/RM scorecard income is 3.90%

Who is Overdraft gold loan for?

HDFC Bank gold loan overdraft is a suitable option for:

• Merchants

• Manufacturers

• Retailers and Transporters

• Traders

• Enterprises and contractors

They can use the HDFC Bank Gold Loan Overdraft to meet their expenses, to meet purchases, etc. Now, it gets easier for them because they can get a gold loan Overdraft through mymoneykarma, in which case the process becomes much easier. Their chances of getting sanctioned becomes much easier as well, with mymoneykarma vetting for them. All you need is an account with HDFC Bank.

Here are the benefits you can expect:

• Customers pay interest only if they use the funds. If funds are not used, there is no interest to pay. 

• Get a OD or overdraft gold loan any time you need. Just contact us at mymoneykarma and we will sort out the issue.

• Getting such loans through mymoneykarma makes the whole process hassle-free. Get loans irrespective of turnover, income and other business stability conditions.

• Private Limited and Partnership firms can also get Overdraft facility for gold loan by pledging their own or their family’s jewelry, for getting loan in company’s name.

• The minimum monthly utilization required is 20%. There are no FC charges after 3 months.

HDFC Bank Bullet Payment Product for Gold Loan Agri Customers

Bullet Payment program is only for those who are in the agriculture business, or in ancillary businesses and work. There are several area classifications that are essential to know. Based on your area, you may have to provide additional documents.

Top 10 cities: If you are from the country’s top 10 cities, then you have to provide land documents for tickets of all sizes. Bullet payment cannot be given otherwise.

Non-top 10 cities: One can be eligible based on the below 2 criteria:
a) Loan amount up to Rs. 3 lakhs- If the end use is for agri or related uses, the customer needs to declare it in the loan application form, and also specify the land holding according to PSL Policy.
b) Loan amount is more than Rs. 3 lakhs- If the end use is for agri and related fields of work, the customer needs to provide land documents according to the existing process.

Bullet Payment Product information

Criteria	Policy
Type of loan	Term loan
End use	Agriculture and ancillary use only
Credit score	More than 550
Loan-to-value ratio	75%
Loan amount (no deviation allowed)	Minimum is Rs. 25k and Maximum is Rs. 19 lakhs
Loan tenure	12 months (no deviation is allowed) Interest and principal to be paid after 12 months
Foreclosure charges	2% + GST for 6 months
Interest frequency	Annually. Renewal is not allowed.

 

mymoneykarma’s Process for your Gold Loan Application

Here is our streamlined process for faster loan application and disbursal for you.

1. Our callers pitch your loan interest, fix an appointment after checking the amount required, and verify the availability of gold jewelry in grams apart from gold coins and bars.

2. We then, with the help of HDFC Bank, give you information of the nearest local zonal group for instant action.

3. We validate the details and call you to take your KYC documents and gold jewelry to the nearest center.

4. All documents are verified, and the application form is filled up with mymoneykarma’s DSA code and lead number.

5. At the bank, jewelry is valued by the appointed valuer in your presence.

6. Loan agreement documents are filled and the gold is placed in the bank’s vault.

7. Loan is disbursed to your account or by your overdraft limit in one day.

8. The process takes 45 minutes on an average to complete, based on the loan amount needed.

EMI Calculator Example

Here is an example of how EMI can be calculated for a gold loan you may take:

Payal needs money urgently as her husband has lost his job, and the requirement is around Rs 2.5 lakhs. She decides to take an HDFC Bank gold loan using the jewelry that her grandfather gifted her. The net cost of the jewelry is Rs 3.5 lakhs. She chooses a loan tenure of one year with an interest rate of 12.5%. Using the EMI calculator, the HDFC Bank officials set her EMI amount as Rs 15,270 per month, which is within her monthly budget.     

How to Apply For a Gold Loan from HDFC Bank  

Availing the Sampoorna Bharosa Gold Loan from HDFC is extremely easy and efficient. There are two ways to avail the loan.

1. Walk-in: Customers can walk into an HDFC branch offering gold loans with the necessary documentation and their gold articles. They have to fill in a simple form, after which the gold is evaluated, and the loan is sanctioned within a working day.

2. Online registration: Applicants can also visit the HDFC website and upload their documents. However, they need to visit a branch physically to deposit their gold and get it evaluated.

Frequently Asked Questions

Question: I am a student. Can I avail the gold loan from HDFC Bank?

Answer: All individuals above the age of 18 years can avail the loan provided they can evidence a steady source of income.

Question: How much can I get as the HDFC Bank gold loan amount?

Answer: Applicants can avail a minimum loan amount of Rs 50,000 and a maximum loan amount of Rs 10 lakhs.

Question : What is the maximum loan tenure for HDFC gold loans?

Answer: The maximum tenure for HDFC gold loans is 36 months.