A gold loan is a secured loan obtained against the mortgage of gold for a period of up to 36 months.
You can compare gold loan interest rates to find the best gold loan rates. A gold loan can be obtained for as little as INR 1,000.
All banks and major moneylenders offer gold loans. The interest rates and other features vary depending on the banks. But which one is the best?
In this article, we shall learn about the best bank for gold loans in India along with other important details.
You can get a gold loan from the banks in India with interest rates ranging from 7.30% p.a. to 29% p.a.
You can borrow up to Rs. 1.5 crore with repayment terms ranging from 3 months to 3 years, depending on the loan scheme you choose.
In the event of a financial emergency, you can pledge your gold ornaments and jewelry for funds.
Here are the details:
|Interest Rate||7.30% p.a. onwards|
|Loan Amount||Up to Rs. 1.5 crore|
|Loan Tenure||3 months onwards|
|Processing Fee||0% - 2% of the loan amount + GST|
Several lenders provide the option of receiving a discount on the current interest rate on a loan against gold if the borrower repays the interest on a regular basis.
Also, PNB is good for gold loans in terms of the loan amount, as it offers gold loans with low fund requirements. Here are the interest rates and tenure details of some other popular Indian banks to check which bank is best for gold loan -
|Banks||Interest Rate||Processing Charges||Time period|
|SBI||7.30%||0.50% of the loan amount, minimum Rs. 500||3 months to 36 months|
|Canara Bank||7.35%||0.5% of the loan amount, min Rs. 1,000 and max Rs. 5,000||6 months to 12 months|
|Andhra Bank||7.60%||No processing charges||3 months to 12 months|
|Federal Bank||8.50%||No processing charges||6 months to 12 months|
|PNB||8.75%||0.70% of loan amount + taxes||1 month to 12 months|
SBI Gold Loan has a number of appealing features, some of which are listed below.
Flexible Loan Amount
Loans ranging from Rs. 20,000 to Rs. 50 lakh are available.
Flexible repayment period
The loan can be repaid through EMIs over a period ranging from 12 to 36 months.
Gold items used as collateral are returned upon loan repayment.
Interest rates for the SBI Personal Gold Loan Scheme range from 7.30% per annum to 7.50% per annum, with SBI having sole discretion to change or modify rates. Borrowers are expected to research current interest rates before applying for a loan.
|SBI Gold Loan Schemes||Duration||Margin|
|Gold Loan||36 months||25%|
|Liquid Gold Loan||36 months||25%|
|Bullet Repayment Gold Loan||12 months||35%|
At the time of loan disbursement, the following documents must be provided to the bank:
|Interest Rate||7.30% p.a. onwards||8.95% p.a. to 17.20% p.a.||12.50% p.a.to 17.50% p.a.||10% p.a. - 19.76% p.a.|
|Processing Fee||0.25% + GST||1% + GST||1% + GST||1% of the loan amount|
|Foreclosure charges||NA||1% of the outstanding loan amount||0% - 2% of the loan amount||0% - 1% of the outstanding principal amount|
|Penal interest||NA||NA||2% of the overdue amount per month||NA|
An 18% GST rate is applicable to banking services and products starting from July 1st, 2017.
On the gold loan offered by SBI, a margin of 25% is applicable.
This loan scheme provides a minimum loan amount of Rs. 20,000.
Loans are available in the form of either an overdraft or a demand loan.
Yes, a demand loan has a maximum repayment term of 30 months, whereas an overdraft has a maximum repayment term of 36 months.
The repayment process starts immediately, with the borrower expected to pay EMIs once a month after the loan is approved.