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Many financial institutions in India allow the recipients of the loan to raise funds by pledging their gold reserves as collateral. The gold loan interest rates vary from 7% per annum to 29% per annum. The applicant can avail of a loan of up to Rs 1.5 Crores. And the tenure for repayment ranges from 3 months to 4 years based on the scheme opted for by the recipient of the loan.
Gold loans are secured loans that have existed in one form or the other since ancient times. These secured loans allow the borrower to raise funds through their gold reserves. An individual that owns gold can avail of lucrative interest rates against the loan from NBFCs and financial institutions.
The following table showcases an in-depth comparison between the goal loan interest rates offered by various banks and NBFCs.
|Loan Providers||Interest Rates (Per Annum)||Amount||Tenure|
|SBI Gold Loan||Up to 7.7%||Rs 20,000 to Rs 50 Lakhs||Up to 36 Months|
|HDFC Gold Loan||11% to 16%||Rs 25,000 onwards||3 to 24 Months|
|Mannapurram Gold Loan||9.90% to 24%||Rs 1,000 no maximum limit||6 to 12 months|
|Muthoot Gold Loan||11.9% to 27%||Rs 1,500||7 days to 36 months|
|Canara Gold Loan||8.15%||Rs 5,000 to Rs 35 Lakhs||12 months to 24 months|
|PNB Gold Loan||8.05% – 8.4%||Rs 25,000 to Rs 10 Lakhs||As per the terms and conditions of the lender|
|Kotak Gold Loan||8% to 17%||Rs 20,000 – Rs 1.5 crores||Upto four years|
|Federal Gold Loan||7.99% onwards||Rs 1,000 – Rs 1.5 Crores||As per the terms and condition of the bank|
|Central Bank of India||9.05% onwards||Rs 10 Lakhs to Rs 40 Lakhs||Up to 12 Months|
|Indian Bank Gold Loan||7% onwards||Upto Rs 75 Lakhs||Up to 36 months|
|IDBI Bank Gold Loan||7% onwards||Upto Rs 75 Lakhs||Up to 36 months|
|IndusInd Bank Gold Loan||8.75% – 16.75%||Upto Rs 20 Lakhs||Up to 12 months|
|India Infoline||9.96% to 27%||Rs 3,000 onwards||Up to 24 months|
|BOB Gold Loan||8.70% – 8.80%||Up to Rs 25 Lakhs||12 months to 24 months|
|Karnataka Gold Loan||8.88% – 9.18%||Upto Rs 25 Lakhs||6 months to 12 months|
*It is to be noted that the above mentioned gold loan interest rates are subject to market fluctuations and volatility.
The State Bank of India has established online and offline channels to raise funds from SBI Gold Loan and SBI realty Gold Loan.
The interest rates offered on the HDFC Gold Loan interest rates are lucrative. The applicants can avail of a quick disbursement and overdraft facility.
The customer can also apply online for an Axis Bank Gold Loan, where the funds are disbursed efficiently. And the collateral is safeguarded meticulously.
The application process for the Canara Bank Gold Loan can be concluded with minimal paperwork.
A recipient of the gold loan from the Bank of Baroda can avail of the facilities such as a demand loan, EMI, and an overdraft. The repayment on the loan is monthly.
The Karnataka bank offers gold loans to their customers to fulfil their personal needs and caters to agricultural fund requirements.
The bank has established various online and offline channels to apply for Gold Loan.
The IIFL is a financial institution that offers lucrative interest rates on gold loans.
Applicants can avail of a gold Loan with the Kotak Mahindra Bank by pledging gold ornaments of at least 18 karats.
The applicant can obtain a sum to realise their fund requirement for agricultural and personal purposes.
A bank provides a gold loan to the applicant so that they can fulfil their fund requirement.
This scheme allows the applicants to employ gold reserves to fund their agricultural needs.
This scheme for the IDBI bank allows customers to raise funds to meet their expenses.
The IndusInd Bank, offers lucrative interest rates on their Gold Loan Schemes to cater to the fund requirements of their customer base.
The gold loan recipient can avail of the following features utilising their gold reserves for the obtainment of funds:
The applicant is required to furnish the following documents to the financial institution to conclude the application process:
Also See, Today Gold Rate of Metro Cities in India
|Gold Rate in Bangalore||Gold Rate in Chennai||Gold Rate in Coimbatore||Gold Rate in Delhi||Gold Rate in Hyderabad|
|Gold Rate in Kolkata||Gold Rate in Mumbai||Gold Rate in Pune||Gold Rate in Surat|
The following factors impact the gold loan interest rates. It is advisable that an applicant must consider these parameters before applying for Gold Loan from a financial Institution.
The loan amount granted to an applicant would be concerning the value of the gold assets pledged. The lenders usually offer a minimum and maximum amount on the Gold Loan. In case the applicant has a loan amount in mind, they must ensure that they have sufficient reserves so that the financial institution would be able to process the loan request.
The interest rates offered on these secured loan ranges from bank to bank. The Gold Loan interest rate is generally lower when compared to other products due to the presence of collateral.
The applicant should also account for the charges levied by the financial institutions. Tariffs such as processing, documentation, and loan overdue fees are often levied on the applicant. One should be mindful of the various charges applicable to the loan to compute total expenses accurately.
The repayment tenure of the loan ranges from 3 to 48 months. To make the EMI repayment manageable, the applicant must opt for a loan tenure.
The lender’s creditworthiness is also evaluated so that the financial institution can grasp the borrower’s repayment habits. Some banks also examine the CIBIL score as it gives a numeric synopsis of the applicant’s credit history.
The applicant must also refer to the eligibility criteria set by the banks to ensure they meet the prerequisites.
A diverse range of financial institutions and banks offer Gold loans with lucrative interest rates. The individual inclined to avail of a gold loan must compare the interest rates, processing fees, and tenures.
An individual must implement the following steps to successfully conclude their Gold Loan application.
STEP 1: The applicant can avail of various online and offline channels established by banks and financial institutions. One can visit the lender’s official website and select the ‘Apply Now option. The applicant will be redirected to the application form page, which one must fill out accurately, along with all the relevant documents.
STEP 2: In case the lender has not opened any online channel, the applicant must visit the nearest branch of the Bank. However, they must carry all the relevant documents to facilitate the application process without hassle.
STEP 3: The lender would meticulously evaluate the application and documents. After the financial institution vets the application, the loan amount will be disbursed.
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