Gold loan is offered to meet urgent cash requirements by submitting gold, gold ornaments/jewellery/coins as collateral or security with the bank or lender. The bank charges interest on the borrowed amount and once the loan is repaid in full, the gold items kept as collateral are returned back safely. Even though it is a secured loan, the interest rate offered on gold loan is as low as 7.00% onwards per annum.
Punjab and Sind bank is the only bank offering Gold loan at lowest interest rate of 7.00% onwards with maximum loan amount of Rs. 25 lakh with 0.50% processing fee of loan amount above Rs. 2 lakh. Interest rates and other loan details offered by leading banks are discussed below: