sbi gold loan

Use YONO App to Take Gold Loan With Zero Processing Fees

Gold loans are probably one of the best and easy fixes to your instant monetary needs. They offer you money for a variety of uses, all undocumented, against the collateral that includes your gold items. A gold loan is a secured personal loan and can be obtained by all and sundry. The best part of having gold loans is that they offer a perfect way to capitalise your gold ornaments or material possessions you have, lying around. The SBI gold loan interest rates vary between 7% to 20% p.a. and sometimes even more. Hence it is always advisable to check out your loan eligibility score and the amount you’ll be applying for and whether it is feasible.

SBI Gold Loans and the YONO App

SBI is one of the first nationalised banks in the country. These are are especially safe and trustworthy since they offer the entire process at minimum charges and are overall quite transparent. Further, they facilitate speedy approval and sanction of your loan amount, so your financial requirements are always met with utmost satisfaction.

The key benefits of gold loans at SBI are-

  • It offers loans against gold possessions with minimum documentation, quick processing and zero hidden charges.
  • One can avail of gold loans for a tenure ranging from 3 months to 2 years or more. 
  • They offer several schemes under the umbrella of gold loans like EMI Scheme, Bullet Repayment Scheme, Overdraft Scheme etc.
  • Interest rates range from 7 to 11 percent p.a. on 70% worth of your gold items which is one of the maximum loan amounts you can get anywhere or from any bank.
  • They charge minimum fees and maximum returns on their schemes, moreover with a completely digitized platform, obtaining a gold loan has never been easier.

What is the YONO App?

SBI gold loan can be availed by pledging your gold items or gold coins or ornaments at the bank and taking out money against it. YONO platform has only made it easier to avail the same. According to a press release made by the bank authorities sometime around last year, SBI offered a gold loan at a 7.5% interest rate, which is an almost 0.75% concession on the prevailing interest rate.

If you are looking for ways to take out gold loans from SBI via the YONO app, then this article is for you. Read on to find out more.

How to Take Gold Loans via the YONO App?

  • Apply for the loan amount that you are willing to take out via your YONO account. In case you are using the app for the first time, you need to create an account on the platform as a registered user. On the home page, you need to click on the menu icon and then follow the drop-down to the option of gold loans.
  • The next step is to click on apply now. Once done it will open up a page where you need to put in your details. They will ask for ornament details (type, quantity, Carat and Net weight) along with your details like name, age, Residential Type, Occupation Type, monthly income and the like. If you are through that, you need to submit your form.
  • If the loan gets approved, then you need to physically go to the bank with your gold items, 2 photos and KYC documents. The bank personnel will judge the quality, standard and purity of gold loans before sanctioning the amount.
  • Usually, the next step requires the signing of documents. Once this is done, the loan gets directly transferred to your account within a few working days.

Who are Eligible for SBI Gold Loans?

The eligibility criteria for gold loans is less rigorous compared to loans asked of other schemes like home loans or car loans and the like. Usually, people above 18 years of age with a moderate credit score and sufficient employment guarantee can afford to take out these gold loans. In the case of pensioners, they require no proof of income documentation or slips. All of them are eligible for taking out gold loans in SBI via the YONO app.

Documents required

Application of gold loans via SBI’s online portal, YONO requires minimum documentation and maximum returns. All you need to provide are two copies of photographs, identity proof and address and your KYC forms. 

KYC forms help banks or lenders ascertain accurately the risks involved in lending money to the individuals, help determine the customer’s financial history and whether it’s safe for him to loan out the sum.

Check out for your gold loan eligibility

One important step before applying for gold loans with minimum hassle is to check for the eligibility criteria on the same. This includes checking out the principal amount you are willing to take out against the standard SBI gold loan interest rate and within the stipulated time. They have an online loan eligibility calculator that gives you an approximation of the amount of money you need to spend on EMIs. In case your income statement is such that it can well balance the EMI costs incurred, then only it is advisable and feasible for you to go for the same. Otherwise, it is advisable to sort out the same and then apply for your gold loans.

Factors affecting SBI gold loan interest rates

  • Rate of inflation

Soaring inflation rates will increase your market rate of interest on gold loans such that the total amount you need to pay back is quite high. Hence it is never a good time to take out loans if there’s inflation in the economy.

  • Price of gold

If the price of gold is quite high in the international market, then chances are that the rates of interest and the loan amount applicable on the same will also rise. Lenders would be willing to lend out more at higher interest rates and borrowers would seek a higher principal in return. The problem that might arise though is a probable mismatch in his capability to repay the soaring loan amount in its entirety.

This article covers all the details possible about availing of SBI gold loans via the YONO app. YONO app has greatly boosted the bank’s dealings and helped it in carving out a strong niche on the loan market front. It is advisable that you go through the schemes and related prospectus before investing in the same.

About Sakshi884

Sakshi is a Financial Advisor who helps people with investments and help them to get more out of their investment.

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