IDBI Bank Gold Loan

IDBI, formally known as Industrial Development Bank of India, is a government-owned banking institution that was established in 1964 to meet the financial needs of Indians. At present, IDBI is one of the most prominent commercial banks of the country, providing cutting edge asset and liability products and leading business solutions. IDBI is present in all 29 states of India with an extensive network of more than 1400 branches and over 2000 ATMs. 

IDBI offers customized gold loans to customers from an agricultural background to turn their idle gold into funds to fulfill needs such as farming costs. The Agri-gold loans from IDBI are offered at attractive interest rates. The sanctioned loan amount depends on the current market value of the pledged gold and cannot exceed a maximum limit of Rs. 5 lakhs. The maximum loan tenure for IDBI gold loans is 24 months.

IDBI Gold Loan Features and Benefits

Here are a few advantages and features of IDBI gold loans.

1. Any IDBI customer with a steady source of income can avail the loan.

2. The eligible age range is extensive, covering  a large number of customers.

3. Customers can rest easy regarding the security of their gold, which is kept safe in secure bank vaults.

4. It is a Multipurpose loan that can cover several types of expenses.

5. A maximum loan amount of Rs 5 lakhs and a minimum loan amount of Rs 10,000 can be availed in rural areas.

6. A fast and efficient loan disbursal process.

7. Minimal documentation is required for the loan approval process.

8. All types of gold ornaments and jewelry are accepted as collateral for the loan.

9. Competitive rates of interest are offered to fit all types of customer budgets.

10. A long loan tenure, of a minimum of 1 month, and 24 months for overdraft.

IDBI Gold Loan Amounts

As a part of its Agri-gold scheme, IDBI offers loan amounts ranging from Rs 10,000 to Rs 5 lakhs. The loan amount depends on the total and current market value of the gold articles pledged.

IDBI Gold Loan Interest Rates

IDBI charges an interest rate of 1.25% above the marginal cost of funds-based lending rate, or MCLR. The current MCLR is 9.15% per annum. 

Here is a summary of all the information regarding IDBI gold loans.

Interest Rate	3.25% -5% above the MCLR per year (MCLR: 7.90% p.a.)
Minimum Loan Amount	Rs 10,000
Maximum Loan Amount	Rs 5 lakhs
Gold Loan Margin	25%
Maximum Repayment Tenure	24 months

Eligibility Criteria for IDBI Gold Loans

Customers need to fulfill the eligibility criteria set by IDBI for its gold loans.

1. A minimum age of 21 years.

2. A minimum stipulated income per year.

3. A steady source of income from agriculture.    

4. Possession of minimum one hectare of land

Documentation Required for IDBI Gold Loans

Loan processing requires the following documents.

1. Two passport size photographs.

2. A copy of proof of identity.

3. A copy of proof of address.

4. A filled-in application form.

Fees and Charges Associated with IDBI Gold Loans

Here is a list of fees associated with IDBI gold loans.

Loan Processing Charges	nil
Foreclosure Charges	nil
Valuation Fees	nil
Prepayment or Part-payment Charges	nil
Renewal Processing Fees	nil
Charges for Late Payment of Loan Amount	Not applicable
Stamp Duty & other Statutory Charges	As applicable by state laws

IDBI Gold Loan EMI Calculator

Applicants from an agricultural background can check the tentative amounts that they need to pay as IDBI gold loan EMIs using the gold loan EMI calculator. The EMI calculator depends on the following factors.

1. Gold loan amount

2. Gold loan tenure

3. Gold loan interest rate

4. Loan to Value ratio

5. Current price of the gold

6. Purity and net weight of the pledged gold

7. Relationship with the bank

EMI Calculator Example

Ramakrishna wants to a piece of land next to his field for expanding his cultivation for which he needs around Rs 3.5 lakhs. He decides to take an IDBI Agri-gold loan using his wife’s jewelry. The net cost of the jewelry is Rs 2.5 lakhs. He chooses a loan tenure of 12 months with an interest rate of 11.5%. Using the EMI calculator, the IDBI officials set his EMI amount as Rs 10,270 per month, which is within his monthly budget.

How to Apply for IDBI Gold Loan

The application process requires customers to walk in with the necessary documentation and their gold articles to any IDBI branch offering gold loans. The bank evaluates the worth of the gold articles and verifies the submitted records. The customer can then receive the sanctioned loan amount. The entire process takes less than one working day.

Frequently Asked Questions

Question 1: What is the age range to be eligible for IDBI gold loans?

Answer: The age limit for IDBI gold loans is restricted to the range of 21-65 years.

Question 2: What is the minimum gold loan amount that I can receive from IDBI?

Answer: The minimum gold loan amount from IDBI is Rs 10,000.

Question 3: What is the maximum loan tenure for IDBI gold loans?

Answer: The maximum tenure for IDBI gold loans is 2 years.

Question 4: What kinds of gold articles does IDBI accept as security?

Answer: IDBI accepts gold coins and gold ornaments of purity 18K-24K, weighing more than 50 grams.