How do festival gold loans differ from regular gold loans?

While regular gold loans also serve financing needs, festival loans aim to provide more incentives and quicker access to borrowers.

• Interest rates advertised for festival gold loans may be lower by certain percentage points compared to regular rates.
• The maximum permissible loan amount sanctioned may be higher for the same gold pledge during festival schemes by increasing Loan-to-Value (LTV) ratios, within the range set by the Reserve Bank of India (RBI).
• Faster processing and disbursal on the same day are emphasized more for festival loans.
• Processing fees, valuation charges, foreclosure penalties, and other charges are sometimes waived or discounted during festival periods.
• Repayment tenures offered are usually more flexible for festival loan schemes.
• Prepayment of part loan amounts is sometimes allowed without charges, more commonly under festival loan offers.
• Certain lenders provide special rewards like gold coins or vouchers exclusively for festival loan customers.
• Importantly, the special benefits are applicable only to loans availed during the festival offer periods.