Gold loans are secure loans when the lending bank/NBFC is accepted for collateral in gold items such as gold jewellery, ornaments, etc. You can quickly and document the borrowing against gold. Besides banks like SBI, Bank ICICI, HDFC, etc.
In your jewelry, LTV Ratios and other internal policies of the lender, the amount you may acquire against the gold piece varies on the basis of the pureness of gold. In addition, a minimum and maximum limit may be defined for the lender.
BEST GOLD LOAN IN INDIA 2021
|
GOLD LOAN PROVIDERS |
INTEREST RATE |
LOAN AMOUNT |
TENURE |
PROCESSING FEE |
|
Muthoot Finance |
12% p.a. onwards |
Rs 1,500 – No Limit |
7 days to 36 months |
0.25% to 1% of the loan amount |
|
IIFL |
9.24% p.a. onwards |
Rs.3,000 onwards |
3 months to 11 months |
NA |
|
HDFC Bank |
9.90% onwards |
Rs.25,000 onwards (Rs.10,000 for rural areas) |
3 months to 24 months |
1.5% + GST |
|
ICICI Bank |
11% p.a. onwards |
Rs.10,000 to Rs.1 crore |
3 months to 12 months |
1% of the loan amount |
|
Canara Bank |
7.65% p.a. onwards |
Rs.5,000 to Rs.20 lakh |
6 months to 2 years |
0.25% of the loan amount |
|
Axis Bank |
12.50% p.a. onwards |
Rs.25,001 to Rs.25 lakh |
From 3 months to up to 3 years |
1% plus GST |
|
Manappuram Finance |
9.90% p.a. onwards |
Rs.1,000 to Rs.1.5 crore |
3 months onwards |
Rs.10 (at the time of loan settlement) |
|
Federal Bank |
8.50% onwards |
Rs.1,000 to Rs.1.5 crore |
Minimum 6 months |
Varies for different schemes |
|
Bank of Baroda |
8.75% p.a. |
Up to Rs.25 lakh |
Up to 12 months |
0% to 0.50% + GST |
|
SBI |
7.50% p.a. onwards |
Rs.20,000 to Rs.50 lakh |
Up to 36 months |
0.25% + GST |
|
Punjab & Sind Bank |
7.00%p.a. onwards |
Up to R. 30 Lakh |
Up to 12 months |
1% plus GST |
THINGS YOU SHOULD CONSIDER WHILE HAVING A GOLD LOAN
- Gold Loans are for Short Term.
- Rate of Interest.
- Valuation of Gold.
- Margin or Loan to Value (LTV).
- Form and Purity of Gold.
- Not Every Jewelry is Eligible for Loan.
- Repayment Conditions.
FACTORS AFFECTING GOLD LOAN INTEREST RATE
- Loan Amount.
- Loan to Value Ratio (LTV).
- Relationship with the Bank.
- Margin or Loan to Value (LTV).
- Tenure of the Loan.
- Inflation.
Note: All the interest rates and charges listed above may vary according to the sole discretion of the lender. The aforesaid costs might be charged for GST and service tax.