Karnataka Bank Gold Loan

Karnataka Bank Gold Loan is to meet urgent financial needs for personal, business, and agricultural purposes. You need to pledge your gold ornaments or bank-purchased gold coins. The tenure is up to 12 months. On the due date and complete repayment, the bank will close the account.You can borrow up to Rs. 25 lakhs. Also, maximum exposure per customer is for up to 5 accounts. Thus, per account, the bank can sanction up to Rs. 5 lakhs.

In the below post, we will discuss Karnataka Bank Gold Loan features, charges,documents required, agriculture gold scheme, and frequently asked questions.

Features of Karnataka Bank Gold Loan

Here are more details:

• The gold loan for personal and business requirements repayment is on the specified due date
• The servicing of interest is every month
• The interest rate is according to the MCLR guidelines
• The tenure is between 6 months and 12 months
• The age of the applicant should be between 18 years and 70 years
• The bank accepts gold of purity 18 Carat to 22 Carat
• Bullet repayment, Overdraft, and Term repayment are available
• The bank charges upfront for legal, BIR, valuation, and other services

Charges for Karnataka Bank Gold Loan

Here are the charges and fees for services:

• One-time handling charges for agriculture gold loan is Rs. 150
• The same is Rs. 250 for a general gold loan
• The processing fee for both gold loan schemes for priority and non-priority is 0.25% of the loan amount (if over Rs. Rs. 50,000)
• The minimum processing fee is Rs. 250 + applicable tax

Documents Required for Loan Application

Here are the documents to avail of a loan against gold:

• A duly filled and signed loan application form
• 2 recent passport-size photographs
• Any one of the identity proofs (Passport, Aadhaar Card, PAN Card, Voter ID Card, etc)
• Any one of the address proofs (Ration Card, Driving Licence, Aadhaar Card, Rent Agreement, Utility bill of the last 3 months, etc)
• In case of loan for agriculture, submit agricultural land proof

KBL Agri Gold Scheme

Karnataka Bank Gold Loan for agriculture is to meet short-term expenses for farming and related activities. The eligible borrowers are individuals, Corporates, HUFs engaged in such activities. Primary security is the hypothecation of crops/assets. For collateral, you have to submit gold jewellery or minted gold coins (bank-purchased) not more than 50 grams per borrower.

Features of KBL Agri Gold Scheme

Here is more information:

• For the Agri Production loan, the tenure is up to 12 months. The maximum loan amount is Rs. 25 lakhs
• For Agri Subvention the tenure is up to 12 months. The maximum loan amount is Rs. 3 lakhs
• The Agri Subvention scheme is only for rural and urban branches as instructed by the Government of India above Rs. 1.60 lakhs
• The interest rate is 8.12% onward
• You can repay the loan before or at the due date
• The interest is serviced either yearly or on the due date

Frequently Asked Questions about Karnataka Bank Gold Loan

Here are the FAQs:

1. Why Choose Gold Loan from Karnataka Bank?

Gold Loan is a perfect scheme for salaried as well as professionals. It fulfils different financial needs without any disruption. You can use the amount for personal and business needs. If you are into agricultural activities, then you can apply for an Agri loan as well and pledge gold jewellery/coins.

2. What is the Benefit of a KBL Gold Loan?

The bank has a minimal documentation process. It offers a hassle-free experience. Also, you receive high security for the collateral. The same is returned in a few days after loan account closure..

3. Is the Loan Term Renewable?

You can take the loan for up to 12 months. But you can renew the loan every year for up to 10 years.

4. What Are the Repayment Terms?

By the due date, you must return the principal borrowed amount at regular intervals. But you can repay the interest amount on the due date or yearly/monthly basis.

5. What Are the Details for Overdraft Scheme?

Karnataka Bank has an Overdraft Scheme. Here, the loan amount is credited to the Overdraft account. This is the credit limit just like you would get an approved amount on the Credit Card. So, you can spend the loan amount anytime whenever you wish. There is no need to withdraw the entire sum at once. You will have to pay the interest only the amount utilized and not the entire credit limit.