Gold Loan Interest Rates Comparison 2020
|S.No||Banks||Interest Rate||Loan Amount||Loan Tenure|
|1||Central Bank of India||MCLR+2.00%||70% of the current market price of 22K gold whichever is less||Up to 12 months|
|2||Bank of Baroda||3%+MCLR||Rs. 0.25 lakh-Rs. 25 lakh||Up to 12 months|
|3||SBI||9.15%||Rs.20,000-Rs. 20 lakh||36 months maximum|
|4||IIFL||9.24%-24%||75% of the market value of your gold||3 months-11 months|
|5||Federal Bank||9.50%||Rs.1000-Rs.1.5 crore||NA|
|6||J&K Bank||9.50%-10%||Rs.10,000-Rs.1,500,000||Up to 1 year|
|7||Canara Bank||Max- 8.8%||Rs.10,000-Rs.10,00,000||Up to 12 months|
Rs.10,000(In rural market)
|3 months-24 months|
|8||ICICI Bank||10%-19.76%||Rs.10,000-Rs.15,00,000||3 months-12 months|
|9||Kotak Mahindra Bank||10.50%-17%||Rs.20,000-Rs.25,00,000||Up to 4 years|
|10||Bandhan Bank||10.99%-18%||Min-Rs.10,000||6 months-36 months|
|11||Punjab and Sind Bank||Max-10.50%||Rs.1000-Rs.25 lakh||Agriculture loans-24 months|
For other loans-Up to 12 months
|12||Indusland Bank||11.25%-15.50%||NA||3/6/9 and 12 months|
|13||Muthoot Finance||12%-27%||Rs.1500-No maximum limit(Varies from plan to plan)||7 days-36 months|
|14||YES Bank||Min-12%||Rs.25,000-Rs.50 lakh||6 months-36 months|
|15||Axis Bank||14%||Rs.25,001-Rs.20,00,000||6 months-36 months|
|16||Jana Small Finance Bank||14%||Min-Rs.5000||NA|
|17||Manappuram Finance||14%-29%||Rs.1000-Rs.1.5 crore||3 months|
|18||City Union Bank||14.25%||Rs.5000-Rs.5 lakh||12 months|
|19||Fincare Small Finance bank||14.99%-22.99%||Rs.5000-Rs.25 lakh||9 months-24 months|
|20||AU Small Finance Bank||Up to 18%||Rs.10,000-Rs.15 lakh||NA|
|21||Bajaj Finserv||NA||Up to Rs.25 lakh||1 months-36 months|
|22||Bank of Maharashtra*||NA||Rs.20,000-Rs.5 lakh||Up to 12 months|
|23||Indian overseas bank||NA||Up to Rs.10 lakh||Up to 36 months|
|24||DCB Bank||NA||Up to Rs.20 lakh||1 years-5 years|
|25||IDBI Bank||NA||Rs.10,000-Rs.5 lakh||1 months-24 months|
|26||Karnataka Bank||As per MCLR guidelines||Up to 25 lakh||12 months|
Note: The loan tenure and interest rate will vary depending up on the gold loan scheme you avail
*Gold loan facility from Bank of Maharashtra is not available across India but in a few cities. For more details, visit their official website.
Gold Loan Per Gram
- One can get gold loan by 75% of the market value of the net weight of the gold ornaments excluding stones attached to ornaments, whichever is less
- The weight of coins pledged should not exceed 50 grams per borrower
Gold loan or loan against gold is a secured loan in which a customer pledges his/ her gold ornaments as a collateral to get cash. While other loans require income or salary proofs, one only needs to pledge gold and submit KYC documents to avail gold loan. Below is the list of gold loan providers in India along with other important parameters for you to decide which one to choose:
Factors Affecting Gold Loan Interest Rate
Listed below are some of the factors that affect gold loan interest rates
- Inflation: With increase in inflation, the purchase power of domestic currency reduces and so does the rate of interest.
- Economic Growth: Interest rates may increase with improved economic growth that will lead to increase in the demand for credit
- Demand and supply: Interest rates on a loan against gold increases if the demand for loan increases
FAQs On Gold Loan Interest Rates
Q1. Can anyone avail the gold loan?
Yes, provided the age of an individual falls within the age group of 18 years to 70 years.
Q2. How long does it take to process Gold Loan?
Gold loan from any bank is usually disbursed within an hour. However, this is subject to the loan amount, verification of the gold quality and other documents that you submit.
Q3. What type of security do I need to provide to avail gold loan?
The loan amount will be sanctioned against the gold pledged by you. Hence, the only security which an individual needs to provide is the gold they are ready to pledge.
Q4. How do I repay the gold loan?
One can repay the loan amount via cash, cheque, DD or through fund transfer medium. The gold jewellery will be released on realisation of amount by the gold loan provider.
Q5. Is it possible to repay my gold loan amount partially?
Yes, you can make part-payment but the gold jewellery will only be released after the entire outstanding amount is repaid.
Q6. Can I prepay or foreclose my gold loan?
Yes, one can prepay the loan amount by paying the foreclosure charges.
Q7. How much can I expect for my gold?
This depends on the rate of gold prevailing on that date and purity of gold in the ornaments
Q8. Which documents do I need to provide to avail gold loan?
Customers need to submit KYC documents which include identity, address along with passport size photographs.