On SBI YONO app, get gold loan at discounted interest rate of just 7.5%; here is how to get the money

SBI Yono app gold loan scheme: In this pandemic hit era, having cash in hand is often necessary in case any emergency strikes and gold loans are the easiest way for anyone to get money in hand from a bank instantly. Making the whole process simple is the State Bank of India (SBI), which is not just providing loans against gold, through SBI Yono app, it is actually offering it at an interest rate that has been discounted by as much as 0.75%. Borrowers therefore, need not pay the full interest rate of 8.25%, instead they can have the gold loan at an interest rate of 7.50%. However, there is a catch. SBI has put a deadline to the offer and made the scheme valid til September 30 and that too if the application is made online through SBI Yono app. Going online is good for the borrower simply because the process is quite short as there is minimum paperwork required and takes very little processing time.

How the gold loan process works?

A loan is provided by the bank, in this case SBI through its Yono app, to the borrower in return for gold given up as collateral. Gold acts as a security with the bank for the duration of the loan. The loan amount is however, not 100%, in fact it is about 80% of the value of gold. The loan also depends on the quality of the yellow metal that is being handed over as collateral. In return, the bank charges interest rate over the money it has lent to the borrower.

How much loan can a borrower get?

The highest loan amount is ₹50 lakh while lowest is ₹20,000. The bank also charges a fee, which is 0.50% of the loan amount plus GST. The borrower also has to pay a fee to the Gold appraiser.

What is the tenure of the gold loan?

The loan's tenure is a maximum of 36 months. However, there is a 12-month tenure too and it has been termed as Bullet Gold Loan.

How to get gold loan on SBI Yono app?

Open the app and go the menu and select the option that says loans and then tap on gold loans. If you want to get the loan, tap on the Apply Now tab. Fill in the form that will open before you. Fill in personal details as well as details about the gold, including quality of gold and net weight.

How will SBI take the gold?

While all this will be done online on SBI Yono app, there is no getting away from one thing - the borrower will have to visit the bank to deposit the gold.

What are the documents required for the gold loan?

The borrower will require 2 photos and all the documents/ID proofs, especially address proof, to complete theSBI's KYC process.