Best Gold Loan Interest Rates In India? Gold loans take to complete requirements such as paying for the child’s education, a wedding, a medical emergency, etc.
The interest rate on gold loans, against gold mortgages, is relatively lower than other types of loans and ranges from 7.05% to 29% p.a.
Banks and other financial institutions in India offer gold loans. The loan amount for which ranges from Rs.1500 to Rs.1 crore. Which is Car Loan Providers in india?
The repayment period of these gold loans is between 7 days to 240 months.
How to get the lowest gold loan rates?
- Special offers: Always check the current offers and interest rates offered by various banks as banks run special schemes on a periodic basis.
- Compare bank offers for various loan amounts: Typically, banks offer lower interest rates on higher loan amounts and vice versa. In addition, the interest rates offered by NBFC are usually high as they offer small loan amounts with flexible and prompt service.
- Type of loan taken: Generally, loans given at lower interest rates than gold taken for agricultural purposes. Similarly, if you are planning to avail of the overdraft facility against gold. You may have to pay a higher interest rate.
- Loan to Value Ratio: Loans charged higher than the interest ratio, more at the interest rate. According to the latest RBI circular to provide relief to gold loan takers. Banks can give loans up to 90% in the form of loans.
- Existing bank account holder: Many times, existing customers of the bank given gold loans at a cheaper interest rate. So, if an existing savings account, FD, or loan account.
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Best Gold Loan Interest Rates In India
| Bank | Gold Loan Interest Rates | Processing Fee | Max Tenure |
|---|---|---|---|
| SBI Gold Loan Rates | 7.50% | 0.50% of the loan amount, minimum Rs.500 | 36 months |
| Muthoot Gold Loan Rates | 11.99% | 0.25% to 1% of the loan amount | 36 months |
| Manappuram Gold Loan Rates | 12.00% | Rs. 10 (to be paid at the time of settlement) | 12 months |
| HDFC Bank Gold Loan Rates | 9.50% | 1.50% of the loan amount | 24 months |
| Yes Bank Gold Loan Rates | 9.99% | 0.75% or Rs 500 to 799, whichever is higher | 36 months |
| ICICI Bank | 10.00% | 1% of the loan amount | 12 months |
| Federal Bank | 8.50% | Nil | 12 months |
| Canara Bank | 7.65% | 1% of the loan amount, Min Rs. 1,000 and Max Rs. 5,000 | 12 months |
| Andhra Bank | 10.70% | Nil processing fees | 12 months |
| Axis Bank | 13.00% | 1% plus GST | 24 months |
| IndusInd Bank | 10.00% | Up to 1% of the loan amount, minimum Rs. 750 | 12 months |
| PNB | 8.75% | 0.70% of loan amount + taxes | 12 months |
| Fincare Small Finance Bank | 12.99% | Upto 0.5% | 9 Months |
Loan Amount Per Gram of Gold
Many lenders offer you loans against pledging gold at attractive interest rates. The loan amount varies depending on the weight of gold you pledge.
The loan amount per gram is a figure which varies among banks. Some major gold loan providers are listed below along with the loan amount offered per gram:
| Lender | Loan Amount per gram of Gold |
|---|---|
| ICICI Bank | Rs.1,914 |
| Axis Bank | Rs.2,166 |
| HDFC Bank | Rs.2,097 |
| Manappuram Finance | Rs.1,890 |
Types of Gold Loan Interest Rates
- Fixed-rate of interests: The rate of interest charged on the loan amount remains constant throughout the loan term. Thus, the EMI of a gold loan also remains the same during the repayment schedule.
- Floating rate of interest: The gold loan rate is not fixed and is variable. In this case, the interest rate is linked to the external benchmark perceived by the lender, such as the repo-linked lending rate (RLLR) or prime lending rate (PLR). Hence interest rates vary with market conditions. Also, since the rate is not fixed, the EMI on the gold loan can suddenly increase or decrease.
- Purpose of Lending: The interest rate on gold loans is also based on the purpose of lending. Banks generally offer lower rates of interest for agricultural gold loans that are given to farmers and people engaged in agriculture to meet their farming expenses.
- Agricultural Gold Loans: These are loans given to farmers and farmers for gold jewelry that finance them for the purpose of crop production spending and investment in agriculture or allied agricultural activities.
- Non-Agricultural Gold Loans: The loan extended to all other categories of loans except farmers and farmers is known as a non-agricultural gold loan. These loans are available to all individuals including salaried, self-employed professionals, businessmen, women, women, housewives, students, retired officials who own gold and want to pledge to get loans. Facilities on non-agricultural gold loans are explained by repayment options under loan schemes.
Frequently Asked Questions
ANS: You can calculate the gold loan interest by subtracting the principal amount from the total amount to be paid. The total amount you pay by the end of the term can be calculated with the help of an EMI calculator.
ANS: Gold loans are secured loans, in which you are required to keep your physical gold in the form of jewelry or coins according to the needs of your fund. It is considered a good option for short-term money requirements.
ANS: According to SBI, the minimum loan amount can be Rs 20,000 and a maximum of Rs 50 lakh. The security here is a pledge of verified gold jewelry for quality and quantity. Processing fee 0.25% of the loan amount and applicable GST (which is a minimum of Rs. 250)
ANS: To apply for a gold loan, you must be a farmer, businessman, salaried or self-employed professional, or businessman. Between 21 and 70 years of age.
ANS: If you are not confident of returning the principal and interest on time, then you should avoid taking a loan in exchange for gold. Also, gold loans are good in a growing market. However, if the prices of gold fall significantly during the loan period, banks may ask for payment of the difference.
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