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SBI Gold Loan Interest Rates for SBI gold loan schemes
SBI Personal Gold Loan
Scheme | 1-year MCLR | Spread over 1 year MCLR | Effective interest rate |
|---|---|---|---|
Gold loan EMI based | 8.65% | 1.25% | 9.90% |
12 months bullet repayment gold loan | 8.65% | 0.50% | 9.15% |
Scheme | Three month MCLR | Spread over 3-month MCLR | Effective interest rate |
|---|---|---|---|
3 months bullet repayment gold loan | 8.20% | 0.55% | 8.75% |
Scheme | Six month MCLR | Spread over 6 Month MCLR | Effective Interest Rate |
|---|---|---|---|
6 months bullet repayment gold loan | 8.55% | 0.35% | 8.90% |
SBI Realty Gold Loan
Scheme | 1 Year MCLR | Spread over 1 year MCLR | Effective Interest Rate |
|---|---|---|---|
Realty gold loan (All variants) | 8.65% | 0.50% | 9.15% |
Disclaimers: The MCLR and the effective interest rates of the SBI schemes listed above are subject to change. For exact interest rates, refer to the bank website or contact the bank.
Comparison of SBI Gold Loan Interest Rates with Other Providers
In the table below, the interest rate of SBI gold loan is compared with the interest rates of some of the top banks and NBFCs
Name of the Bank | Interest Rate | Loan Amount |
|---|---|---|
8.75% p.a. onwards | Up to Rs. 50 lakhs | |
17% p.a. onwards | Rs. 25,001 to Rs. 40,00,000 | |
9.00% p.a. to 17.65% p.a. | Rs. 25,000 onwards | |
9.25% p.a. | Rs. 5,000 to Rs. 35 lakhs | |
The interest rate depends on the type of gold loan scheme and its tenure | From Rs. 1500 onwards | |
9% to 24% p.a. (depending on the purpose, profile, and discretion of the bank) | Rs. 20,000 to Rs. 1.5 crores | |
10.00% to 16.00% | Up to Rs. 20 lakhs | |
9.25% p.a. | 25000 to Rs. 25 lakhs | |
9.40% p.a. | Up to Rs. 50 lakhs | |
12% p.a. onwards | Varies according to the scheme |
Disclaimer: The interest rates and loan amounts mentioned above are subject to change. For exact interest rates and loan amounts, refer to the websites or contact the respective banks.
Factors Affecting SBI gold loan Interest Rates
The factors affecting gold loan interest rates in India are as follows:
- Loan amount: The interest rate offered by SBI is directly proportional to the loan amount. The higher the loan amount, the higher the interest rate.
- Market price of gold: The market price of gold also influences the gold loan interest rates in India. If the market price of gold is high, the value of the gold articles you are pledging will be high also. So, the interest rate offered is low since the risk associated is lesser.
- Inflation: When the inflation rates are higher, the currency value goes down and people tend to accumulate more gold in this period. Gold acts as a safety wall against inflationary conditions especially when they continue to exist for a longer time. This will lead to a soar in gold price and hence interest rates will be lower.
Types of Gold Loan Interest Rates
- Fixed interest rate: Fixed interest rates are those which stay the same throughout the term of the loan, providing stability in your monthly repayments.
- Floating rate of interest: The floating rate of interest is not fixed, and it keeps changing with market conditions. Since the rate is not fixed, the EMI will fluctuate and may increase or decrease unexpectedly.
Features of the SBI gold loan
- Flexible loan amount: You can avail loans between Rs. 20,000 and Rs. 50 lakhs.
- The actual loan amount is determined by the State Bank of India by checking the gold purity and net weight. The bank does not grant any gold loans based on the security of primary gold (For example: 24 carats of gold bars and biscuits).
- Flexible repayment tenure: The loan can be repaid through EMIs with the maximum period of 12 to 36 months.
- Flexible loan repayment options: SBI offers flexible repayment options for gold loans. Individuals can repay SBI personal gold loans through gold loans, bullet repayment gold loans, or liquid gold loans.
- Processing fees: The processing fee levied is 0.50% of the loan amount.
- Gold objects pledged as security are returned upon repayment of the loan.
- SBI gold loan is easy to get and requires very little documentation.
- SBI does not levy prepayment penalties for loans that are prepaid by the borrower.
Eligibility for the State Bank of India Gold Loan Scheme
SBI Personal Gold Loan
Those who want to apply for a loan under the personal gold loan program must meet a few minimal eligibility criteria.- Age: A borrower must be at least 18 years old to be eligible for this program.
- Income: A candidate must have a dependable source of income. Income proof documents must be furnished except for bank employees and pensioners.
SBI Realty Gold Loan
Those who want to apply for a loan under the Realty Gold Loan Scheme must meet a few minimal eligibility criteria.- Age: 18 years and above
- Pre-condition: housing loan borrowers of SBI (Both existing and new)
Documents Required for SBI Gold Loan
SBI Personal gold loan
- Application for Gold Loan with two copies of photographs.
- Identity proof documents
- Address proof documents
- Witness Letter in case of illiterate borrowers.
Documents required at the time of disbursal
- DP Note and DP Note Take Delivery Letter.
- Gold ornaments Take Delivery Letter.
- Arrangement Letter.
Note: For the SBI Realty gold loan, please contact the bank to know about the documents required.
How to Apply for State Bank of India Gold Loan Schemes?
You can apply for State Bank of India Gold Loan through the following steps
Step 1: Visit the official website of SBI
Step 2: Click the loan tab
Step 3: Click on gold loan
Step 4: A new page will open specifying the SBI gold loan schemes available. The two SBI gold loan schemes are the SBI personal gold loan and the SBI Realty gold loan schemes.
Step 5: Click on ‘More information’ under each scheme. The pages for the specific schemes will open and you can find the apply now option.
Step 6: Click the Apply Now option. You will be redirected to the application form
Step 7: Proceed to complete the loan application as per the instructions.
Disclaimer: The features, eligibility, documents required, and the application process for the State Bank of India gold loan scheme are subject to change. For exact information on them, refer to the SBI website or contact the bank.
FAQs on State Bank of India gold loan Interest Rates:
1. Is it possible to make a part payment and still get some of the jewellery?
Once the last payment has been made, the gold jewellery pledged will be given to you.
2. Is it necessary to have a co-applicant for an SBI gold loan?
An SBI gold loan can be procured without a co-applicant.
3. What is the minimum and maximum loan amount available at SBI Bank?
The loan amount ranges from a minimum of Rs. 20,000 to a maximum of Rs. 50 lakh per individual.
4. What is the interest rate of SBI gold loan?
- 3 Months Bullet Repayment: 8.75% (0.55% above Three Month MCLR)
- 6 Months Bullet Repayment: 8.90% (0.35% above Six Month MCLR)
- 12 Months Bullet Repayment: 9.15% (0.50% above 1 Year MCLR)
- Gold Loan on EMI: 9.90% (1.25% above 1 Year MCLR)
Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Since this type of data might change over time, we cannot guarantee that the information supplied or included within it is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.
