As you asking I am telling bank of baroda (BOB) Gold Loan to its customers under two different schemes.

Baroda Trader’s Loan Against the Security of Gold Ornaments / Jewelry

Baroda Advance Against Gold Ornaments / Jewelleries

Interest Rate:
The rate of interest for the loan is Base Rate + 3.00% = 9.90% + 3.00% = 12.60%

Eligibility Criteria:
All individuals or joint borrowers, proprietorship or partnership firms who are engaged in trading activities and have a valid license to support it are eligible to avail the loan.

BOB (Bank of Baroda) Gold loan features

The loan is available at the Metro or urban centers of the bank only

The loan is issued as a Term Loan or a Demand Loan

The loan can be used for any purpose other than any sort of speculative purposes

The minimum amount of loan available is Rs.25, 000 and the maximum amount of loan granted to any individual is Rs.10 lakhs

The bank keeps a margin of 25% as a margin and advances the rest 75% of the value of the gold coins, jewelry or ornaments up to a maximum amount of Rs.3 lakhs of loan. For loans above Rs.3 lakhs, the margin requirement increases to 35% and the amount advanced is 65% of the value of the gold pledged

The maximum tenure of repayment is 36 months or 3 years. It means that customers availing the loan should repay the loan along with the interest by a maximum of 3 years.

The processing charge under the loan is 0.50% of the amount of loan sanctioned plus the service tax as per the applicable State Laws