Fincare Small Finance Bank Gold Loan is a type of loan offered by Fincare Small Finance Bank, a scheduled commercial bank in India. This loan is secured against the borrower’s gold ornaments or jewellery. The bank provides this loan to individuals who need funds for business expansion, education, medical expenses, weddings, or other personal requirements.
The loan amount offered by Fincare Small Finance Bank depends on the value of the gold pledged by the borrower. The bank will generally lend up to 75% of the value of the gold, up to a maximum of Rs.40 lacs. The bank also offers flexible repayment options, allowing borrowers to choose the repayment tenure that suits their needs.
To avail of a Fincare Small Finance Bank Gold Loan, the borrower needs to provide the gold ornaments or jewellery as collateral. The bank will figure out the value of the gold and then offer the loan amount based on the same. The borrower needs to pay the interest on the loan amount and repay the loan within the stipulated time. The bank may seize the gold ornaments or jewellery offered as collateral if this still needs to be done.
The benefits of the Fincare Small Finance Bank Gold Loan are as mentioned below:
High Loan Amount:
Fincare Small Finance Bank lends up to 75% of the value of the gold pledged, up to a maximum of Rs.40 lacs. This means that borrowers can get a significant amount of funds depending on the value of the gold they pledge.
Competitive Interest Rates:
Fincare Small Finance Bank offers competitive interest rates on gold loans, making it an affordable funding source for borrowers. The interest rates are usually fewer than those offered on unsecured personal loans.
Flexible Repayment Options:
The bank offers flexible repayment options, allowing borrowers to choose the repayment tenure that suits their needs. The bank provides Bullet or a monthly-based product with 12 months tenure, giving borrowers ample time to repay the loan.
Quick Disbursement:
Fincare Small Finance Bank Gold Loan has a quick and hassle-free approval process, and the loan amount is disbursed quickly. The bank has a transparent and straightforward process, and borrowers can expect fast approvals and disbursals.
No Credit History Required:
Fincare Small Finance Bank Gold Loan is a secured loan; therefore, borrowers won’t require a high credit score or credit history to avail of this loan. The loan is sanctioned based on the value of the gold pledged, making it an attractive option for those with poor credit history.
Multiple Schemes with amounts Range:
Fincare Small Finance Bank offers different schemes for different needs by providing a gold loan from Rs.10,000/- to Rs.40 lacs.
No Hidden Charges:
Fincare Small Finance Bank takes a straightforward and honest approach to lend, with no hidden fees or charges. Borrowers can be assured that they will not be charged additional fees beyond the interest rate. Charges detail has been as mentioned below:
Service/Transaction Type | Charges |
---|---|
Processing Fees | 0% to 0.5% + Applicable Taxes |
Foreclosure Charges | Maximum up to Rs.500/- (If closed within 31 days from the date of disbursement) |
Renewal Charges | Nil |
Valuation Charges | Nil |
Part Payment Charges | Nil |
Penal Interest | 1% per month |
Stamp Charges | As per applicable law of state |
https://www.fincarebank.com/charges-and-fees |
For example, suppose a borrower pledges gold jewellery worth Rs.1 lacs. In that case, Fincare Small Finance Bank can offer a loan of up to Rs.75,000/- (75% of the gold value). The borrower may spend the cash for any purpose and choose the repayment tenure that suits their needs. Suppose the borrower selects a repayment period of 12 months. In that case, they would need to pay back the principal amount of Rs.75,000/- and the applicable interest rate within the stipulated time.
Fincare Small Finance Bank Gold Loans are an appealing alternative for those who need funds quickly and have a better credit history. The loan is secured against gold ornaments or jewellery, and the bank offers competitive interest rates, flexible repayment options, and quick disbursals, making it an affordable and convenient funding source.