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| Bank | Interest Rate | Lowest EMI Per Lakh | Eligible Loan Amount for Max Tenure |
|---|---|---|---|
| SBI Gold Loan | 7.50% | Rs. 3,111 | Rs. 20 Lakh for 36 months |
| Muthoot Gold Loan | 12.00% | Rs. 3,321 | Rs. 1 Cr for 36 months |
| Manappuram Gold Loan | 12.00% | Rs. 8,885 | Rs. 1 Cr for 12 months |
| HDFC Bank | 10.05% | Rs. 4,617 | Rs. 50 Lakh for 24 months |
| IIFL | 9.24% | Rs. 9,516 | Rs. 10 Lakh for 11 months |
| Yes Bank | 11.25% | Rs. 3,286 | Rs. 50 Lakh for 36 months |
| ICICI Bank | 10.00% | Rs. 8,792 | Rs. 15 Lakh for 12 months |
| Federal Bank | 8.50% | Rs. 8,722 | Rs. 75 Lakh for 12 months |
| Canara Bank | 8.70% | Rs. 8,731 | Rs. 10 Lakh for 12 months |
| Andhra Bank | 10.70% | Rs. 8,824 | Rs. 2 Cr for 12 months |
| Axis Bank | 14.00% | Rs. 4,801 | Rs. 20 Lakh for 24 months |
| IndusInd Bank | 10.00% | Rs. 8,792 | Rs. 10 Lakh for 12 months |
| PNB | 10.05% | Rs. 8,794 | Rs. 10 Lakh for 12 months |
You may be eligible for gold loan in India from one or more banks if you meet the following eligibility conditions:
Eligibility Criteria
| Minimum and Maximum Age | 21 Yrs – 65 Yrs Note: However, many banks require minimum age of 23 years |
| Loan Amount |
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| Employment Type |
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| Quality of Gold |
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| CIBIL Score |
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| Gold ornaments that can be used for availing loan |
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| Employment track record and income proofs | Banks do not check your job stability or business stability to sanction you a gold loan. Gold loans are granted without income proofs. You only need to submit your basic KYC documents such as address proof, identity proof and Aadhaar card to avail this loan. |
Gold Loan calculator calculates the gold loan per gram based on the total weight of jewelry, level of purity, past 30 days average price of 22 carat gold and loan to value offered by your bank.As per today’s gold prices the highest gold loan per gram against 22 carat gold is Rs. 4,650 per gram.Key variables that are required to calculate gold loan rate per gram is past.
| Gold Purity | Past 30 days average price of gold per 10 grams | Maximum LTV | Gold Loan per gram of gold |
|---|---|---|---|
| 22 carat | 46,087 | 75% | 3,457 |
| 20 carat | 41,897 | 75% | 3,142 |
| 18 carat | 37,708 | 75% | 2,828 |
However, you will be eligible for a lesser gold loan per gram of jewelry if you take a loan against 10 gram of 18 carat gold. If you take a loan against 18 carat gold, you will be eligible for a gold loan of Rs. 2,828 per gram of gold after multiplying it with the calculated price of 18 carat gold as seen in the table above.
If you take a loan against 22 carat gold, you will be eligible for a gold loan rate of Rs. 3,457 per gram
Gold loan eligibility is measured in terms of loan per gram of gold or gold loan amount you may get given the value of gold pledged (dependent on price of gold), purity of gold and LTV applied by banks. The price of gold is taken as past 30 days average price of 22 carat gold and loan to value offered by your bank. Your loan amount elgibilty along with the interest rate offered and tenure of the gold loan determines your Gold Loan EMI.
ILLUSTRATION 1: The borrower has 100 gm of gold jewelry. Multiple banks have provided different estimates of gold loan per gram and gold loan interest rate based on their assessment of gold weight, purity and loan to value ratio to be offered to the borrower. Bank X estimates the gold jewelry at 22 carat with a net weight of 75 gm (after deducting the weight of gems and stones). The bank applies a LTV ratio of 70% and offers the loan at an interest rate of 9.90%.
At the lowest interest rate of 9.90%, the minimum EMI works out to be Rs. 2,531 per lakh loan amount for 4 years.
Bank Y estimates the purity of gold jewelry at 22 carat with a net weight of 90 gm (after deducting the weight of gems and stones). The bank applies a LTV of 75% and offers an interest rate of 29.00%. How do the two gold loan offers compare with each other in terms of loan amount eligibility and hence, Gold Loan EMI
Banks will take average price of gold of last 30 days to estimate the value of the gold to calculate a borrower‘s gold loan eligibility. The current average gold rate per 10 gram is Rs. 46,500.
| Bank | Gold Loan eligibility | Interest rate | Monthly EMI |
|---|---|---|---|
| Bank X | Rs. 2.24 Lakh | 9.90% | Rs. 7,210 |
| Bank Y | Rs. 2.88 Lakh | 29.00% | Rs. 12,057 |
Borrower is eligible for a lower loan amount of Rs.2.98 Lakh from Bank X for 100 gram of jewelry at a lower interest rate compared to the other bank. Given, lower loan amount and lower interest rate, the borrower has to pay a monthly EMI of Rs. 12,504 from Bank X.
In case of Bank Y, Mr. A is eligible for a higher loan amount of Rs. 3.20 Lakh for 100 gram of jewelry, but he will pay a higher interest rate and hence, a higher EMI on the loan.
Whether Mr. A will take a loan from Bank X or Bank Y depends on the loan amount he is looking for. If the loan amount he is eligible to get from Bank X is suitable to meet his requirements, he may opt for lower interest and hence, low EMI loan. If he is looking for higher loan amount eligibility, it might be suit him to take a loan from Bank Y, even when it comes at higher interest rate.
Gold Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced with each EMI. EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
MI depends upon loan amount, interest rate and loan tenure
ILLUSTRATION 2: Mr. B wants to take a Gold Loan of Rs. 3 lakh with a tenure of 12 months at an interest rate of 14.5%. He is not sure on how is repayment schedule look like in the case of EMI gold loan scheme and Bullet repayment gold loan scheme. Under the bullet repayment scheme, the borrower has opted for interest only EMIs where he pays monthly EMIs to service his interest expenses and pays the principal component in one go at the end of the loan tenure. Mr. B will end up paying more interest in the bullet repayment scheme, as he is not repaying any principal back to the bank during the loan tenure.
| Monthly Payment | EMI Scheme (Rs.) | Bullet Repayment (Rs.) |
|---|---|---|
| Month 1 | 27,007 | 3,625 |
| Month 2 | 27,007 | 3,625 |
| Month 3 | 27,007 | 3,625 |
| Month 4 | 27,007 | 3,625 |
| Month 5 | 27,007 | 3,625 |
| Month 6 | 27,007 | 3,625 |
| Month 7 | 27,007 | 3,625 |
| Month 8 | 27,007 | 3,625 |
| Month 9 | 27,007 | 3,625 |
| Month 10 | 27,007 | 3,625 |
| Month 11 | 27,007 | 3,625 |
| Month 12 | 27,007 | 3,625 |
| Bullet Payment (At end of 12 months) | Rs. 3 Lakh | |
| Total Payment | Rs. 3.24 Lakh | Rs. 3.44 Lakh |
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