A gold loan, also known as a loan against gold, is a secured loan that a borrower obtains from a lender in exchange for gold jewellery or other gold ornaments. This form of loan could be a good choice if you need money for an urgent cost and hope to be able to repay it within a limited period of time. Lenders will usually grant you a loan based on a percentage of the value of the gold. You are able to pay it back in monthly installments and get your gold items back. The prepayment duration, also known as the gold loan tenure, varies by the lending institution. It normally lasts between 3 and 12 months. Depending on the circumstances, some lenders can give a longer-term or allow you to renew your loan to extend it. Since the term of a gold loan is shorter than that of other forms of loans, make sure you pay it back on time. You will lose all of your gold articles if you default to a gold loan.
The United Bank of India is a government-owned financial institution. Customers may choose to use United Bank of India's banking and financial services. A gold loan from the Union Bank of India is the easiest way to obtain funds for personal or business purposes. The United Bank of India Gold loan funds can be used for weddings, school, expansion of business, or any other similar intention. The Union Bank of India gold loan is a hassle-free funding solution that meets your needs with minimal documentation and safe storage. The Gold Loan offered by Union Bank of India is a bank-provided financial instrument that meets your short- or long-term funding needs. It is simple to obtain financial services from banks at lower interest rates.
Features
Interest Rates and charges :
The Union Bank of India offers a Gold Loan Interest Rate of about 7.0 per cent per annum. The Processing Fee is 1.0% of the Principal Loan Amount. Prepayment or Foreclosure Charges of 2% plus GST (Within 3 Months) is levied. There are no Prepayment or Foreclosure Charges after 3 months. A Valuation Fee of Rs 250 for a loan up to Rs 1.5 lakhs and about Rs 500 for a loan amount over or above Rs 1.5 lakhs is charged. A Late Repayment Charge of 2% per annum plus an applicable rate of interest may be charged. Renewal Processing Fees is about Rs 350 plus the GST.
Types :
The following are the various schemes offered by the United Bank of India in accordance with the Gold Loan product:
Conclusion -
Applying for a United Bank of India Gold Loan is an easy and seamless procedure that can be completed at your convenience from your own home. You can apply for a Gold Loan online by going to the bank's official website and filling out a form with basic details about yourself and the Gold Loan you want. After that, you'll need to go to the branch with the required documents and your gold. Depending on the quality of your gold, you can get a loan from the United Bank of India for Rs 5,121 per gram. It is important to determine whether you are eligible for a United Bank of India gold loan before applying. This is a criterion that varies from one lender to another. You can simply visit the portal from your web browser and fill in the details of your United Bank Gold Loan application to verify the status of your loan. You may also inquire about the same by calling the bank.
Must Read:- Gold Loan in times of Covid