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Gold Loan

ICICI bank understands the value of its customer’s assets and hence provides the real worth of it at the time of need through its Gold Loan Facility. It’s an easy loan facility with no Equated Monthly Installment worries and instant approval.Through this facility not only does the bank ensure easy fund availability to its customers,it also promises security to their gold by ways of safety storage in its vault. Gold loans provide funds for expenses like child’s education, agricultural need, vacations, working capital requirements and all other small essentials. In short, it’s a smart way to fulfill ones immediate financial requirements at a shorter period of time. In order to avail Gold loan from ICICI bank, the customer needs to visit the nearest branch and get the necessary details.

ICICI Gold Loan: Features

  • Instant Gold Loan: ICICI bank sanctions instant gold loans against one’s jewelry. The loan amount ranges from Rs.10000 to Rs.15 lakhs. Loan can be availed across the counter instantly.
  • Gold Coins: The loan can also be availed against the security of 24 carat gold coins with 99.99% purity issued only by banks operating in India. However, the weight of the gold cannot exceed more than 50 grams per customer. These rules are laid down by RBI and are subject to change.
  • Loan Tenure: Gold loans can be availed for a minimum period of 6 months to a maximum of 12 months.
  • Attractive interest rates: Provides the most attractive rate per gram of gold. Check current Gold rate in India.
  • Value for Gold: The valuation of one’s gold is done by an expert valuer.
  • Safety: After having analyzed the value of the gold, the valuer places the gold in a tamper proof pouch,seals it and stores it in the bank’s vault. This process is done in the customer’s presence. This ensures safety and security of the gold.
  • Approval period: Its takes a minimum of 30 minutes for the bank to approve the loan.

Documentation Required

  • Identity Proof: Copy of Driving License/PAN Card / Form 60/61 / Passport Copy / Voter ID card / Aadhaar Card / Ration Card.Any one of the documents is required to be submitted at the time of availing gold loan. These documents carry a photograph of the applicant which acts as a proof of the applicant’s identity.
  • Residence Proof: Copy of Driving License/Ration Card/Aadhar Card/Rental lease agreement with a utility bill in the name of the landlord, not more than three months old. Any one of the documents can be submitted. These documents state the correct address of the applicant, thus making the verification process easy.
  • Proof of Land holding in case of agricultural loan of more than Rs.1 lakh.
  • Two Passport Size Photographs.

ICICI Bank Gold Loan Interest Rate

Interest Rate

Starting from 10.0% to 16.5%

Processing Fees

1% of loan amount sanctioned

Repayment Period

6 months to 12 months

Min./Max. Loan Amount

Rs.10,000/Rs.15 lakhs

Prepayment Charges

1%, If a/c is closed within 11 months
(for 12 months tenure)

1%, If a/c is closed within 5 months
(for 6 months tenure)

NIL, If a/c is closed after 11 months
(for 12 months tenure)

NIL, If a/c is closed after 5 months
(for 6 months tenure)

Penal Charges

6% p.a. over original loan interest rate on overdue amount

The rate of interest also changes according to the product variants.The bank charges fixed simple rate interest which is calculated on a monthly reducing balance basis.ICICI bank provides attractive interest rates on Gold loan based on the prevalent market situations on Gold Loan ranges from a minimum of 10% to 16.5%. The penal interest rate is kept at 6%. However, the penal interest rate is not charged for agricultural loans up to Rs.25000 per customer.

Fees & Charges

The bank levies certain charges on the loan that it offers. These charges differ depending upon the tenure of the loan i.e. whether it’s a six months loan product or a twelve months loan product.

  • Processing Fee: The bank charges a minimal amount of processing fee i.e. the charge levied at the time of processing of the loan application. These charges stand at 1.0% of the loan amount for both six months product and twelve months product.
  • Pre-Payment Fee: Prepayment is a facility offered by the bank wherein the customer can repay the entire loan amount before completion of the original tenure. However, certain things are to be kept in mind before opting for this option.Pre-payment fees for six months will be charged in case of closure of the account within 5 months and a pre-payment fee for twelve months will be charged in case of closure of account within 11 months. The general pre-payment fee is kept at 1% of the principal outstanding amount for both six months and twelve months products. Partial pre-payment of the loan amount can also be opted for; however, the Gold jewelry will be released only after the full payment of the outstanding amount is done.
  • Documentation Charges: The bank levies Rs.199 if the loan is applied for a period of 12 months and no charge if the loan is availed for a period of 6 months.
  • Renewal Fees: The bank charges certain renewal fees in case the applicant wants to renew his existing loan with the bank. However, the charges vary depending upon the amount of the loan. The bank charges Rs.250 for a loan amount up to Rs.1 lakh, Rs 350 for loans lying between Rs.1 lakh to Rs.2 lakhs and Rs.500 for loans above Rs.2 lakh.
  • The bank also charges Stamp Dutyand other statutory charges as applicable by Law. Service tax and other charges are also applicable.
  • The above fee charges are not applicable for agricultural loans up to Rs.25000 per customer.

Annual Percentage Rate (APR):

The Annual percentage rate is a method used to calculate the annual credit cost including interest rate and processing fee. However, it excludes prepayment charges. The bank provides its customers with an APR calculator to get a clear picture of the total charges and expenses to be borne by the customer in order to avail the loan.

Mode of Repayment: The loan amount can be repaid through cash, cheque or funds transfer. However, the Gold jewelry will be released only after total realization of the outstanding loan amount.

Terms and Conditions

  • An individual lying between the age group of 18-70 years can apply for a loan with the bank.
  • In the event of change of an address due to shifting, relocation or any other reasons, the applicant must notify the bank within 7 days of change in address in writing with details of the changes in the address or the new location.
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