New Delhi: With the rise in gold prices, there is likely to be a rise in demand for gold loans. A gold loan is a secured loan. You mortgage your gold jewellery/ornaments for loans to banks or financial institutions. The paperwork for a gold loan is minimal as compared to other loans such as a home loan.
Higher Loan-to-value ratio
Other than minimal documentation, gold loans have many benefits. With the rise in the price of gold, your loan-to-value ratio (LTV) also increases. It means that you will get larger amount of loan with the increase in the price of gold. Many banks and non-banking financial institutions offer gold loans. Gold loan interest rates range from 8.5 per cent to 26 per cent. We have prepared a low-interest gold loan bank list here for your consideration:
SBI Gold Loan interest rates
The interest rate on SBI Gold loan starts from 8.75 per cent per annum. Here you can avail a minimum gold loan of Rs 20,000. Maximum Amount of Gold loan is Rs 50 lakh. On SBI Personal Gold Loan, the bank is offering different loan rates of different tenures.
Scheme
1 year MCLR
Spread over 1 year MCLR
Effective Interest Rate
Gold Loan EMI based
8.65%
1.25%
9.90%
12 Months Bullet Repayment Gold Loan
8.65%
0.50%
9.15%
Scheme
Three Month MCLR
Spread over 3 Month MCLR
Effective Interest Rate
3 Months Bullet Repayment Gold Loan
8.20%
0.55%
8.75%
Scheme
Six Month MCLR
Spread over 6 Month MCLR
Effective Interest Rate
6 Months Bullet Repayment Gold Loan
8.55%
0.35%
8.90%
HDFC Bank Gold Loan
HDFC is offering Gold Loans from 6 months up to 42 months. Below are the Gold Loan interest rates offered by the bank.
Product
Min
Max
Average
GOLD LOAN
9.00%
17.65%
11.98%
PNB Gold Loan interest rates
Punjab National Bank is offering a Gold Loan Against gold jewellery/Gold ornaments. Here you can avail a maximum loan of Rs. 25 lakh and a minimum loan of Rs 25,000.
Name Of Scheme
Revised Rate Of Interest
Advance against Gold Jewellery/Gold Ornaments
(Demand Loan)
RLLR+BSP (Presently 9.25%)
Advance against Sovereign Gold Bonds (Demand Loan)
Post Office schemes Interest rates
Bank of Baroda Gold Loan
Bank of Baroda is offering gold loan at an effective interest rate of 9.40 per cent. You won’t have to pay any processing charges up to Rs. 3 lakh of loan. No pre-closure, or prepayment charges will be levied on gold loans by banks.
Conditions
ROI
Effective Rate of Interest
Retail Gold Loan
LA180 (demand loan)
BRLLR+SP
9.40%
LA241 (EMI)
BRLLR+SP
9.40%
OD043(overdraft)
BRLLR+SP
9.40%
ICICI Bank Gold Loan
ICICI Bank is offering a maximum Gold Loan of Rs 10,000,000 and a minimum loan of Rs 50,000. The minimum period for Gold Loan is 6 months and the maximum period is 12 months.
Minimum
Maximum
Mean
9.00%
18.00%
14.65%
Disclaimer: All the interest rates have been taken from respective bank’s website.
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Low interest gold loan bank list: HDFC Bank, SBI, ICICI Bank, and Bank of Baroda are offering gold loans at attractive interest rates. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
