Lowest Gold Loan Interest Rates
Mode of calculation
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Interest rate will be quoted on annualized basis only.
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Interest amount will be calculated on the daily outstanding balance in the loan account at the contracted rate.
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Interest will be calculated on the basis of 365 days a year.
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Compounding, if any, will be provided in specific loan schemes.
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All loans carry the fixed contracted rate till closure of account.
Risk related rate of interest
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Since a higher LTV (loan per gram) translates to a higher risk interest rate and LTV will be correlated.
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Assuming all other factors to be the same a higher LTV loan will attract a correspondingly higher interest rate as compared with a lower LTV loan.
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The interest rate applicable will vary from time to time and will be mentioned against the specific operative schemes / loan products.
Penal / Overdue interest
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When the loan remains outstanding beyond the 'normal' tenure overdue / penal interest will be charged at 3% pa (i.e. contracted rate plus 300 basis points) on the amount due and payable till the account is regularized / closed
