|Bank||Gold Loan Interest Rates||Processing Fee||Max Tenure|
|SBI Gold Loan||7.50%||0.50% of the loan amount, minimum Rs. 500||36 months|
|Muthoot Gold Loan||12.00%||0.25% to 1% of loan amount.||36 months|
|Manappuram Gold Loan||12.00%||Rs. 10 (to be paid at time of settlement)||12 months|
|HDFC Bank||10.05%||1.50% of the loan amount||24 months|
|Yes Bank||11.25%||0.75%, Minimum Rs. 500||36 months|
|ICICI Bank||10.00%||1% of the loan amount||12 months|
|Federal Bank||8.50%||Nil||12 months|
|Canara Bank||8.70%||1% of the loan amount, min Rs. 1,000 and max Rs. 5,000 per loan||12 months|
|Andhra Bank||10.70%||Nil processing fees||12 months|
|Axis Bank||14.00%||1% plus GST||24 months|
|IndusInd Bank||10.00%||Upto 1% of loan amount, minimum Rs. 750||12 months|
|PNB||10.05%||upfront fees of 0.70% of loan amount + taxes||12 months|
Based on a comparison of gold loan rates of all banks, HDFC Bank, Yes Bank, ICICI Bank, Andhra Bank, IndusInd Bank, PNB give the lowest gold loan interest rates in the range of 9.90% to 11.5%. Similarly, based on a comparison of processing fees, IIFL, Federal Bank, Andhra Bank are the best banks to take loan against gold as they charge the lowest processing fees of Nil Charges.
Interest rates are charged on the borrowed loan amount for the loan tenure. Lowest interest rate on gold loan is 9.90%. Interest rate to get loan against gold depends on multiple factors -
Loan amount – This is the amount borrowed by the borrower from a bank. Generally, interest rate are high for smaller loan amount and vice-versa.
Loan to Value Ratios - Banks charge higher interest on gold loan with high LTV ratio. Hence, higher the loan to value of jewellery, higher the interest rate and vice versa.
Relationship with the Bank - Banks offer lower rate of interest on jewel loan for their existing account holders with a quick turnaround.
Gold Loan Schemes can be categorized based on the purpose of lending. Banks usually offer lower rate of interest for agricultural gold loans which are offered to farmers and people engaged in agriculture for meeting their farming expenses.
Comparison of Gold Loan Rates in India
Checklist for Gold Loan
|Identity Proof||PAN Card/ Aadhaar Card/ Voter’s ID Card/ Passport Copy|
|Address Proof||Rent agreement/ Passport/ Driving License/ Utility Bills/ Aadhaar Card/ Voter’s ID Card|
The outbreak of Coronavirus has created an unexpected level of anxiety among investors. This impact has affected all the assets, including the gold futures. On the one hand, investors wary of investing in gold. On the other hand, people are considering every option to maintain a good stock of savings and have started investing in gold as a safe option. This has ultimately impacted the gold prices severely. On 16th Jun 2020, the 22 carat gold prices stands at ₹ 4,610 per gram.
Which bank has lowest interest rate on gold loan?
Following are the banks with lowest interest rate on gold loan:
|Banks||Rate of Interest|
What are the documents required for availing Gold Loan?
The documents required for availing gold loan are:-
How can I get the maximum amount of Gold Loan per gram?
For an Indian, jewelry is extremely precious and close to heart. Yet, in times of need, you might need to mortgage them to meet your urgent expenses. At such times, you need to ensure that you get the maximum gold loan per gram. It is advisable to choose the mortgaged jewelry with the help of following guidelines:
What is Jewel Loan?
The loan you avail by giving your jewelry as collateral is called Jewel loan. Lenders accept Gold jewelry or ornaments, which are of 18 carats and above. Anything below 18 carats is not accepted as security for availing loans against gold ornaments.
Why do I need Gold Loan?
These loans are usually taken for short term requirements. Generally, these are used for children education, marriage and other financial emergencies in the family. Usually rate of interest on jewel loan is relatively low as it a secured loan for banks and NBFCs.
What are the benefits of Gold Loan?
Gold Loan has the following benefits:
What are the disadvantages of taking a Gold Loan?
We do not see any significant disadvantages of taking a gold loan except that you need to part away with your gold holdings and take them to the nearest branch of the lender for valuation and depositing it with the bank. RBI has specified strict guidelines for ensuring complete safety of your ornaments when they are pledged with a bank or a NBFC.
In addition to this, for salaried employees working with reputed companies taking a gold loan might be easier and come at a low rate of interest compared to personal loan.
Does my credit score have any effect on my gold loan?
To avail the gold loan, credit score is not mandatory. So, whether you have a credit history or not, is not considered during the loan application process.
Is taking gold loan safe?
All the top banks and NBFCs provide the gold loan. The gold you submit as collateral is kept safe under high security as per the guidelines of RBI. After you have repaid the loan along with interest, your gold is returned to you in the same form. Thus, availing the gold loan is safe.
Which is better: Gold Loan Vs Personal Loan?
A gold loan is a secured loan, while a personal loan is an unsecured loan. The average rate of interest that you can get in the gold loan is much lower than what you will get in personal loan. However, the maximum tenure of the loan is upto 3 years for the gold loan while it is 5 years for the personal loan. So, in case you have gold, and you think you can repay the loan within 3 years, gold loan is a better option in this scenario.