Looking for a gold loan but not sure where to get it from?
A gold loan is a secured loan obtained against the mortgage of gold (jewels/coins/bars etc.) and is offered by most major banks and moneylenders. The interest rates and other features vary depending on the banks.
But which bank is best for gold loans? Or are you searching - ‘the lowest gold loan interest rate in which bank’ on various platforms?
In this article, we shall find out which bank is best for gold loans in India along with other important details.
The features of gold loans vary based on the lenders. These loans usually come with interest rates that vary 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.
Here are some general features of gold loans -
|
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 (can be higher as well) |
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. This rebate can range between 1% and 2% of the original interest rate.
Here are the interest rates and tenure details of some popular Indian banks -
|
Banks |
Minimum Interest Rate |
Processing Charges |
Time period |
|
SBI |
7.30% |
0.50% of the loan amount + minimum Rs. 500 + applicable GST |
3 months to 36 months |
|
Canara Bank |
6.90% |
0.5% of the loan amount, min Rs. 500 and max Rs. 5,000 |
Upto 12 months |
|
Union Bank |
MCLR + 1% |
No processing charges |
3 months to 12 months |
|
Federal Bank |
6.99% |
No processing charges |
6 months to 12 months |
|
PNB |
RLLR + BSP +0.50% |
0.70% of loan amount + taxes |
1 month to 12 months |
|
ICICI Bank |
10.00% |
1% of loan amount |
6 months to 12 months |
Here are some of the salient features and benefits of gold loans -
Gold loans are secured which means that collateral or security is required in order to avail these loans.
Collateral in this case can be in the form of gold coins, jewellery, gold bars, etc. The quality of the gold will also matter
As these loans are secured, the interest rates are generally lower as compared to unsecured loans such as personal loans
The repayment rate can vary between 3 months to 12 months depending on the lender
Even those with relatively lower credit scores can avail these loans as long as they have collateral
There are multiple lenders in the market today offering gold loans. The perfect one to choose will solely depend on your requirements. How much collateral will you be able to provide? What is your repayment capacity? Take a look into these factors before selecting the perfect loan for you.
In the meantime, if you are looking for a collateral-free loan that is disbursed instantly and requires minimal documentation, visit the Money View website or download the app to apply!
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.