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List of Top 10 Banks Gold Loan Interest Rates in India 2024
The table below presents the gold loan interest rates and loan amounts of some of the best 10 banks for 2024.
S.No | Bank | Interest rates | Loan amount |
|---|---|---|---|
1 | 8.75% p.a. onwards | Rs. 20,000 to Rs. 50 lakhs | |
2 | 9% to 24% based on the intent, profile, and discretion of the bank. | Rs. 20,000 to Rs. 1,50,00,000 | |
3 | 9.00% to 17.67% | From Rs. 25,000 onwards | |
4 | 9.25% p.a. | Rs. 5000 to Rs. 35 lakhs | |
5 | 17% p.a. onwards | Rs. 25,001 to 40,00000 | |
6 | 9.40% p.a. | Upto a maximum of Rs. 50 lakhs | |
7 | Punjab National Bank gold loan | 9.25% p.a. | Rs. 25,000 to Rs. 25 lakhs |
8 | 10% p.a. onwards | Rs. 50,000 to Rs. 1 crore | |
9 | 10% to 16% | Upto Rs. 20 lakhs | |
10 | Upto Rs. 3 lakhs - 8.45% Above Rs. 3 lakhs - 8.55% | Rs. 10,000 to Rs. 40,00,000 Lakh |
Disclaimer: The interest rates and loan amounts mentioned in the above table are as of 16th May 2024 when this page was written and are subject to change. For exact rates and loan amounts, contact the respective banks or refer to their websites.
State Bank of India Gold Loan - Features and Benefits
Tenure: Loan tenure between 12 months and 36 months.
Processing Fee: Low processing fee of 0.5% of the loan amount subject to a minimum of Rs. 500 plus applicable GST
- Flexible loan amount: You can avail of loans ranging from Rs. 20,000 to Rs. 50 lakhs.
- Flexible loan repayment modes: SBI offers flexible repayment modes for gold loan repayment. A customer can use gold loan, liquid gold loan, or bullet repayment gold loan methods to make payments for SBI gold loans.
- Security: Gold items given as security are returned on repaying the loan.
- Quick approval of the loan.
- Prepayment - Borrowers can prepay their loans without any prepayment charges.
Kotak Mahindra Bank Gold Loan - Features and benefits
Tenure: up to 4 years
Processing Fee: Up to 2% of the loan amount plus applicable GST.
- Quick disbursal
- Security of gold: Your gold will be completely safe and secure at the bank
- Minimal documentation
- High LTV ratio: Gold loans can be availed at a higher loan-to-value ratio
- Flexible repayment options: Offers easy and multiple repayment options
- Both existing and non-existing customers of Kotak Mahindra can avail of this facility.
- Gold loan amount determined based on assessment of pledged gold: The gold loan ornaments or coins pledged by the customer will be evaluated by the bank to determine the eligibility for the gold loan amount
- Gold loan facility: Customers can avail of gold loan facility options and decide on the facility available under the most suitable product.
HDFC Bank Gold Loan - Features and Benefits
Tenure: The bank offers flexible repayment tenures ranging from 6 to 24 months
Processing fees: Up to 1% of the disbursal amount (Including the applicable tax)
- Lower interest rates and processing fees: Customers can benefit from low processing fees. A specific set of customers can also benefit from further discounted rates.
- Minimal documentation
- Waiver on loan foreclosure charges: There are no foreclosure charges after 3 months.
- Maximum LTV ratio: A high LTV ratio of 75% of the calculated weight of gold.
- Different types of gold repayment schemes: HDFC gold loans can be repaid through different schemes like through regular EMIs, repaying the principal and interest after 1 year which is known as the bullet repayment option, or paying the interest upfront and the principal at the end of the tenure.
Canara Bank Gold Loan - Features and Benefits
Tenure: Up to 2 years
Processing fees: 0.5 % of the loan amount + GST subject to a minimum of Rs.500
- Affordable interest rate: Canara Bank gold loans come with competitive interest rates making the loan widely accessible.
- No prepayment penalty: There is no prepayment penalty on Canara Bank gold loans.
- Minimal processing charges
- Quick processing and disbursement.
- Quantum of gold loan: You can obtain 70% of the appraised value of gold as loan.
- Three schemes: Canara Bank provides three gold loan schemes namely Swarna Loan, Swarna OD, and Swarna Express.
IndusInd Bank Gold Loan - Features and Benefits
Tenure: IndusInd bank offers flexible tenures ranging from 3 to 12 months
Processing fees: Up to 1% of the loan amount
- Instant disbursal
- Minimal documentation
- Flexible loan amount: The bank offers flexible loan amounts up to Rs. 20 lakhs
- Safety: The bank assures you of the security of the gold assets pledged. The gold is sealed in your presence and kept in the safekeeping vault of the bank.
- Easier loan process for IndusInd Bank customers: If you are an IndusInd Bank customer, you are given easier repayment options and lesser documentation. Thus, the loan process is made simpler for you.
Axis Bank Gold Loan - Features and Benefits
Tenure: Up to 36 months
Processing fees: 0.5% of the loan amount.
- Quick loan disbursal: You will receive the funds in your bank within 60 minutes.
- Get high-value gold loans: Axis Bank provides high-value gold loans
- Lower interest rates and processing fees: Benefit from lower interest rates and a low processing fee of 0.5% of the loan amount.
- Flexible repayment tenure: You can choose a repayment tenure for the gold loan at your convenience.
- Secure storage of gold: Axis Bank offers safe storage of gold. The pledged gold is safely locked and stored in the bank vaults for the tenure of the loan.
- Axis eDGE reward points: You can accrue 150 Axis eDGE reward points upon gold loan disbursal. You can redeem the reward points across various categories.
- Multipurpose: The loan amount can be used for any purpose according to your requirements.
- Simple documentation: The documentation is very minimal requiring basic KYC documents such as PAN card and Aadhaar card.
Bank of Baroda Gold Loan - Features and Benefits
Tenure: 12 months to 36 months
Processing fees: Nil processing fees for loan amounts up to Rs. 3 lakhs. For amounts above 3 lakhs - 0.50% of the loan amount plus GST.
- Easily convertible: A Bank of Baroda gold loan can be converted easily into cash.
- No guarantor required: A guarantor is not required for BOB gold loans.
- No income proof: Bank of Baroda does not ask for income proof to get a gold loan.
- Security: BOB ensures the safety of your gold ornaments, jewellery, or coins.
- Pricing not based on the credit score: The overall cost of the gold loan is not based on your credit score.
- Minimal paperwork: Documentation is simple.
- Faster disbursal: Loan disbursal is quick.
Punjab National Bank Gold Loan - Features and Benefits
Tenure: Up to 1 year
Processing fees: 0.30% of the loan amount or Rs 500, whichever is higher
- The gold loan can be availed by borrowers for both personal and corporate needs.
- Loan Margin: The margin of loan that has to be paid by the borrower is 25% and it is 30% for the bullet payment option.
- Weight and purity of gold: Gold coins or jewellery should not weigh more than 50 grams. Also, the purity must be between 18 and 22 carats.
- Eligibility for bank-officered gem loans: Businessmen, pensioners, salaried workers, students, self-employed professionals, and homemakers fall into the categories of customers eligible for bank-officered gem loans. The individual has to be a minimum of 18 years to be eligible.
- Repayment tenure: The repayment of agricultural and non-agricultural gold loans can be done in 12 monthly instalments or two half-yearly instalments.
ICICI Bank Gold Loan - Features and Benefits
Tenure: 6 months to 12 months
Processing fees: 1.0% of the loan amount.
- Instant access to funds
- Simple documentation
- Safety of your gold jewellery
- Quick disbursal
- Get a loan of up to Rs. 1 crore
- Attractive interest rate
Central Bank of India Gold Loan - Features and Benefits
Tenure: Less than or equal to 12 months from the date of sanction.
Processing fees: 0.50% of the loan amount, Minimum: Rs.250/- & Maximum: Rs.5000
- Quick disbursal of the loan: The loan will be disbursed quickly in 5 minutes.
- Simple documentation: The documentation procedure is simple, and most lenders just require identity and address proof.
- Repayment flexibility: When you make a payment, you can pay the interest portion initially. The principal is due to be paid only when the loan is due.
Disclaimer: The tenure, processing fee, and other features and benefits of the gold loans of the banks mentioned above are as of 16th May 2024 when this page was written and are subject to change. For exact information on these, contact the banks or refer to their websites.
How to find the best gold loan?
To find the best gold loan, it is ideal to compare the interest rates, processing fees, and other charges across banks and NBFCs. Here are some additional top tips to find the best gold loan.
- The Loan-to-Value (LTV) ratio determines the highest possible amount for a secured loan based on the market value of the collateral asset.In case of a gold loan, the collateral is gold. So, the LTV determines the quantum of gold loan amount you can get. Higher the LTV ratio, higher the amount of gold.
- Tenure of the loan: Choose a loan tenure that suits your repayment capacity. Your EMIs may be lower when the tenure is longer but this can result in higher interest payments over time.
- Check the processing time: It is ideal to check the loan processing times of different lenders. When you are in dire need of finance, you will need funds to be disbursed immediately. Thus, compare and choose the lender with quick processing and disbursal time.
- Minimal paperwork: Choose the lender who offers simple documentation with least paperwork. This will speed up your process.
- Customer review: Choose a lender who has good customer reviews. Good customer reviews show the credibility of the lender.
- Repayment options: Choose a loan with flexible repayment options like interest only, EMI payment, bullet repayment, etc.
FAQs on Best Bank for Gold Loan:
1. Which bank gives 90% gold loans?
Jana Small Finance Bank offers 90% gold loan with a high LTV and the highest rate per gram of Rs. 4219. This complies with the RBI’s approval to enable only Scheduled Commercial Banks to give 90% LTV on gold loans.
2. What are the documents needed to take a gold loan?
Documents required to avail of a gold loan are identity-proof documents, address-proof documents, passport-size photographs, gold purity certificate, gold ownership proof, and ornament evaluation.
3. Which bank offers the best gold loan?
The best bank for a gold loan in India can depend on factors such as interest rates, processing fees, and the loan amount. As of 2024, some top options include
1. State Bank of India
- Interest Rates: Starting from 8.75% per annum.
- Loan Amount: Minimum ₹20,000 to a maximum of ₹50 lakhs.
- Processing Fees: 0.50% of the loan amount, subject to a minimum of ₹500 + applicable GST.
2. HDFC Bank
- Interest Rates: Ranging from 9.00% to 17.16% per annum.
- Processing Fees: Up to 1% of the disbursal amount (inclusive of applicable taxes).
- Loan Amount: Starting at ₹25,000 (minimum loan amount of ₹10,000 available in rural markets).
3. ICICI Bank
- Interest Rates: Ranging from 9% to 18.00% per annum.
- Processing Fees: 1.0% of the loan amount.
- Loan Amount: Minimum ₹50,000 to a maximum of ₹1 crore.
4. Kotak Bank
- Interest Rate: 9% to 24%.
- Loan Amount: Minimum Rs 20,000/- to maximum Rs 1,50,00,000.
- Processing Charge: Up to 2% of Loan amount + applicable GST.
4. Axis Bank
- Interest Rate: Starting from 17.00%.
- Loan Amount: Rs. 25,001 to Rs. 40,00,000.
- Processing Fees: Up to Rs. 2 lakh: Rs. 300; More than Rs. 2 lakh: 0.5% of the loan amount.
4. What is the interest of 1 lakh in SBI gold loan?
To calculate the interest on a gold loan from SBI, we need to know the loan amount (1 lakh in this case) and the duration of the loan.
3 Months Bullet Repayment Gold Loan
Rate = 8.75% per annum = 0.0875
Time = 3/12 years (3 months converted to years)
Interest = 1,00,000 × 0.0875 × (3/12) = 2,187.50
6 Months Bullet Repayment Gold Loan
Rate = 8.90% per annum = 0.0890
Time = 6/12 years (6 months converted to years)
Interest = 1,00,000 × 0.0890 × (6/12) = 4,450.00
12 Months Bullet Repayment Gold Loan
Rate = 9.15% per annum = 0.0915
Time = 12/12 years (12 months converted to years)
Interest = 1,00,000 × 0.0915 × (12/12) = 9,150.00
Gold Loan on EMI
Rate = 9.90% per annum = 0.0990
Time = 12/12 years (12 months converted to years)
Interest = 1,00,000 × 0.0990 × (12/12) = 9,900.00
So, the interest amounts are as follows:
1. 3 Months Bullet Repayment Gold Loan: ₹2,187.50
2. 6 Months Bullet Repayment Gold Loan: ₹4,450.00
3. 12 Months Bullet Repayment Gold Loan: ₹9,150.00
4. Gold Loan on EMI: ₹9,900.00
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.
