Gold Loan interest rate:Gold loan is a better option to arrange money quickly in an emergency situation. If you need money and for this you are thinking of borrowing money against the gold jewellery kept at home, then here is a list of many banks for your convenience. Before moving forward with this option, understand the important aspects related to gold loan.
What is gold loan?
Gold loan is an easy option to borrow money from a bank or financial institution. In this, the borrower has to keep his precious jewellery i.e. gold jewellery as collateral in the bank and the bank issues a loan in exchange for 18 to 22 carat gold. To borrow money in thisPrecious metals have to be given as collateral. This is the reason why gold loan is considered a secured category of loan. In this, customers have to visit banks less. In fact, in the case of gold loan, they have to go through less paperwork and the loan is issued by the bank in less time.
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How is the loan amount decided?
According to SBI, the loan amount is decided on the basis of the purity of gold i.e. 18, 20, 22 carats and weight. The bank does not issue loans on primary gold i.e. 24 carat gold and biscuits. If someone has already availed SBI’s personal gold loan scheme once, then he can apply for the loan a second time as well. In SBI, you can avail gold loan a maximum of 3 times, which also includes the existing loan within the bank’s prescribed limit of Rs 50 lakh. However, the terms of different banks may vary.
Gold Loan: What is the interest rate
Gold loans are usually cheaper than other options for borrowing money. Currently, banks are offering gold loans at interest rates ranging from 8.80% to 19%. The tenure of these loans is from 6 to 60 months i.e. half year to 5 years. The interest rate on gold loans may vary in different banks. If you want to raise funds for any important work through cheap interest gold loans in a short time, then here you can check more information about some major banks and the gold loans offered by them.
| Name of the Bank | Rate of Interest (Annual) | Processing Fees | Tenure |
| State Bank Of India | 9.05%-10.20% | Up to 0.50% of loan amount | EMI facility: 3 years; Bullet repayment: 3, 6 & 12 months |
| Indian Bank | 8.80%-10.60% | NIL |
Bullet- Up to 1 year; EMI based- Up to 35 months;OD- can be renewed within 1 year |
| Canara Bank | 9.00% | waived off till 30th September 2024 |
Bullet- Up to 6 months; OD- Up to 2 years |
| Muthoot Finance Limited | 10.50% onwards | Rs 25 to Rs 75 (appraisal charges) | Upto 1 year |
| Manappuram Finance Limited | 9.90% onwards | At time of loan settlement: Rs 10 Additional processing fees on re-pledge: 0.007% of net pledge value |
Upto 1 year |
| Punjab National Bank | 9.25% | 0.30% of loan amount or Rs 500, whichever is higher |
EMI based- up to 3 years; Bullet- up to 1 year; OD- up to 1 year |
| ICICI Bank | 9% onwards | Up to 2% of loan amount | 6 months-1 year |
| Axis Bank | 17%-19% | Up to 0.5% of loan amount | 6 months to 3 years |
| South Indian Bank | 14.80%-15.05% | Up to 1% of loan amount |
Bullet- 3,6 & 12 months; EMI based & OD- 1 to 3 years |
| CSB Bank | 9.49% onwards | 0.25%-0.50% of loan amount (appraisal charges- Rs 100-Rs 750) |
Term Loan- 5 to 42 months; OD- Up to 1 year |
| DCB Bank | 9.55%-18% | 2% of the loan amount | 1-5 years |
,Note : This list of banks has been prepared by Paisa Bazaar.com. Information related to interest rates has been collected by Paisa Bazaar from the concerned banks, which is up to August 20.)
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Who can apply for gold loan
Any Indian citizen between the age of 18 and 75 years can apply for a gold loan in a bank. To get a loan against gold, customers have to keep their precious gold ornaments with the bank as collateral. The bank checks the gold and gives a loan on the remaining amount after deducting some haircut on its market price.
