Gold Loan Interest Rates
Interest rate is the amount of interest charged over and above the principal amount by the lender from the borrower. Interest rate is the percentage or principal of the loan amount. Gold Loan also called as gold against loan which is a secured loan taken by the borrowers from the lender in lieu of gold ornaments to meet any types of personal needs such as education, business, for any type of emergencies, wedding etc. The loan amount sanctioned by the lender is a certain percentage of gold’s value. One can repay it through monthly EMIs. Interest rate on a gold loan is the amount of charged by the lender above the loan based on the value of the pledged gold.
Gold Loan Interest Rate in comparison to Banks
In this article we are going to discuss in details about Gold Loan interest rates charged by the lenders above the loan, benefits of gold loan, fees and charges of gold loan as per comparison to Banks.
Also Read: Personal Loan Interest Rates
1. SBI Gold Loan Interest Rate
SBI Gold Loan is offered up to Rs 50 lakh with an attractive interest rate starting from 7.30% onwards. SBI Gold Loan can be availed by submitting ones own gold, gold ornaments or gold coins as a collateral or security with SBI[1]. After repaying your loan amount, SBI will safely return the submitted collateral to you. SBI loan application process is hassle free and the disbursing of loan is instant. Avail gold loan from SBI with flexible loan repayment modes.
| Interest Rate | Starting from 7.30% p.a. onwards |
| Maximum Loan Amount | Up to Rs 50 lakhs |
| Loan Tenure | Up to 3 years |
| Processing Charges | 0.25% of the loan amount + GST subject to minimum of Rs 250 NIL, if applied through YONO |
SBI Gold Loan Interest Rates as per Schemes
| SBI Gold Loan Schemes | Effective Interest Rates |
| Gold Loan (all variants) | 7.50% p.a. onwards |
| Realty Gold Loan only for SBI Housing Loan Customers (all variants) | 7.30% p.a. onwards |
2. Axis Bank Gold Loan Interest Rates
Avail Gold Loan from Axis Bank for high loan amounts up to Rs 25 lakhs and interest rate ranging from 13.50% p.a. You can get your loan disbursal at the same day of your application. You can avail loan from Axis bank against your gold ornaments[1].
| Interest Rate | 14.50% p.a. to 17% p.a. |
| Loan Amount | Rs 25,001 to Rs 25 lakh |
| Loan Tenure | Up to 3 years |
| Processing Fees | 1% of the loan amount + GST |
| Foreclosure Charges | NIL |
| Penal Interest | 2% per month on the overdue loan amount |
3. HDFC Bank
HDFC Bank offers gold loan schemes designed to provide financial aid to individuals against their gold[1]. Avail gold loan from HDFC Bank with minimal documentation and quick loan approval without any hassles and delays. You can avail gold loan from HDFC Bank with interest rate ranging from 8.50% p.a. with flexible loan repayment tenure.
HDFC Bank Gold Loan Interest Rates
| Interest Rate | 8.50% p.a. onwards |
| Loan Amount | Minimum loan amount is Rs 25,000 |
| Loan Tenure | Up to 2 years |
| Processing Fees | 1% of disbursal amount |
| Foreclosure Charges | 1% + applicable charges |
| Prepayment Charges | 1% + applicable tax |
| Bounce Cheque Charge | Rs 200 + GST |
4. Canara Bank Gold Loan Interest Rates
Canara Bank offers gold loan scheme to its customers called Swarna Loan which can be availed by keeping your owned gold as a security, primarily designed to meet any financial emergencies. Avail gold loan from Canara Bank with MCLR interest rates starting from 7.25% p.a. with a maximum loan amount of Rs 30 lakh[1].
| Interest Rate | 7.25% p.a. onwards |
| Loan Amount | Rs 20,000 to Rs 30 lakh |
| Loan Tenure | Up to 2 years |
| Processing Fees | 0.25% of the loan amount + GST (minimum of Rs 500 and maximum of Rs 5000) |
5. Punjab National Bank
Punjab National Bank offers loans against gold ornaments, jewellery and gold coins to its customers[1]. The gold loan can be availed for various productive purposes such as to fund the education of children, medical treatments, wedding etc. Punjab National Bank offers various types of gold loan schemes at a competitive interest.
PNB Gold Loan Interest Rates
| For Productive Purpose | Interest Rates |
| Advance against Gold Jewellery or Ornaments | 7.25% p.a. – 7.5% p.a. |
| Advance against Sovereign Gold Bonds | 7.15% p.a. – 7.35% p.a. |
For productive purposes, there is a minimum limit of Rs 25,000 as loan amount approved by PNB. For non-productive purposes, the maximum loan amount is up to Rs 10 lakh.
PNB Gold Loan Fees and Charges
| Processing Fees | 0.75% of the loan amount + GST |
| Prepayment Charges | NIL |
| Documentation Charges | Rs 500 to Rs 5000 including GST |
6. Bank of Baroda
Applicants can avail for Bank of Baroda Gold Loan by self-owned gold, ornaments, coins as collateral or security. Anyone who owns gold jewelry or ornaments can avail a gold loan from Bank of Baroda[1].
| Interest Rate | 7.70% p.a. onwards |
| Loan Amount | Up to Rs 50 lakh |
| Loan Tenure | 36 months |
| Processing Charges | Up to 3 lakh – NIL Above Rs 3 lakh up to Rs 25 lakh + GST |
| Prepayment Charges | NIL |
Bank of Baroda Gold Loan Features
| Category | Up to Rs 3 lakh | Above Rs 3 lakh and up to Rs 10 lakh | Above Rs 10 lakh and up to Rs 50 lakh |
| Agri (Valid up to 31 March 2023) | 1-year MCLR | 1-year MCLR | 1-year MCLR |
| Other Priority | 1-year MCLR + S.P | 1-year MCLR + S.P + 0.25% | 1-year MCLR + S.P + 0.50% |
7. IndusInd Bank Gold Loan
IndusInd Bank offers gold loan which is sanctioned by accepting the gold ornaments of the customers as pledge[1]. Unlike personal loan which is sanctioned on the basis of source of income and repayment capacity of an applicant, gold loan is entirely sanctioned on the basis of the value of the gold pledged. Avail gold loan from IndusInd bank with maximum loan amount of Rs 10 lakh. The documentation process to avail loan from the bank is easy and minimal in nature. IndusInd offers an additional discount on the interest rates if you are women or belongs to an agriculture profession.
| Interest Rate | 10% – 16% p.a. |
| Loan Amount | Up to Rs 10 lakh |
| Loan Tenure | Up to 2 years |
| Processing Fees | 1% of the loan amount + GST |
| Prepayment Charges | NIL |
| Bounce Cheque Charge | NIL |
8. ICICI Bank
One can avail a gold loan from ICICI Bank by pledging their own gold ornament[1]. From ICICI Bank you can instantly avail a loan Up to Rs 15 lakhs. ICICI Bank gold loan interest ranges from 10% p.a. to 19.76% p.a.
Advantage of ICICI Bank Gold Loan
- Hassle free application process
- Minimal documents
- Quick disbursal of loan
| Interest Rate | 10% p.a. to 19.76% p.a. |
| Loan Amount | Up to Rs 1 crore |
| Loan Tenure | Up to 1 year |
| Processing Fees | 1.0% of the loan amount |
| Foreclosure Charges | Up to 1% of the loan amount + GST |
| Prepayment Fees | 1% of the principal outstanding amount |
9. Muthoot Finance Gold Loan
Muthoot Finance Ltd is one of the most popular gold loan providers in India[1]. If you are looking for secure gold loan then Muthoot finance is a better option for you. With Muthoot finance you can remain assured that your gold jewellery is extremally secured and safe. Through Muthoot Finance Ltd. Gold loan services you can avail cash against your gold in just a few minutes.
| Name od Scheme | Muthoot Finance Gold Loan |
| Interest Rate | 12% p.a. to 27% p.a. |
| Loan Amount | Minimum loan amount Rs 1,500 with no cap in the maximum loan amount |
| Loan Tenure | 36 months |
Fees and Charges
| Service charges on loan amount | 0.25% to 1% |
| Service charges on loan account | Rs 50 to Rs 1,500 per account (based on the type of scheme) |
| Security charges | 0.15% of the loan amount, subject to a maximum of Rs 600 and maximum of Rs 50 |
| Documentation charges | Rs 2500 for loan amount less than Rs 1 croreRs 5000 for loan amounts of Rs 1 crore and above |
10. Federal Bank
Federal Bank is one of the India’s private sector bank which offers gold loan at competitive interest rates and with hassle free application process and minimal documentation[1]. Federal Bank gold loans could be the simplest and safest way to secure funds for your immediate needs at attractive interest rates. Federal Bank gold loan is a viable option to get funding quickly.
| Interest Rate | Ranges from 9.50% to 12.95% p.a. |
| Loan Amount | Rs 1,000 and maximum Rs 1.5 crore |
| Loan Tenure | From 6 months to 36 months |
| Processing Fees | Nominal |
FAQs
1. What is a gold loan?
Ans: Gold Loan also called as loan against gold which is a secured loan taken by the borrowers from the lender in lieu of gold ornaments to meet any types of personal needs such as education, business, for any type of emergencies, wedding etc.
2. What do you mean by gold loan interest rate?
Ans: Interest rate on a gold loan is the amount of charged by the lender above the loan based on the value of the pledged gold.
3. What are the benefits of gold loan?
Ans: There are various benefits of gold loan. Some of them are:
- If you are in urgent need of cash then you can avail for a gold loan against your gold jewellery or ornaments by keeping as a security in bank
- It can be availed for the education of your child
- For personal use
- For medical emergencies
- For business purpose
- For agricultural purpose etc.
4. Who can avail a gold loan?
Ans: Any individual whose age lies between 18 and 75 years can apply for the loan. An applicant who has a good source of income having sufficient means to repay the loan amount can avail for the loan.
5. What type of gold can be used for security?
Ans: You can use any type of gold as a security, you can use your gold jewelleries, ornaments or gold coins. Initially, the purity of the gold is checked by the lender and based on your gold the loan amount is approved.
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