The interest rates on gold loans, availed by pledging gold, are relatively lower than other types of loans and range between 9.70% to 29% p.a. Many top banks and financial institutions in India offer gold loans, the loan amount for which ranges from Rs.1,500 to Rs.1.5 crore. The repayment tenure of these gold loans ranges between 7 days to 240 months.
|Name of the Bank||Interest Rate (p.a.)||Loan Amount||Loan Tenure|
|ICICI Bank||10% to 16.70%||Rs.10,000 to Rs.15 lakh||6 months to 12 months|
|Axis Bank||15% to 17.5%||Rs.25,001 to Rs.20 lakh||6 months to 36 months|
|HDFC Bank||10.10% to 16.05%||Rs.10,000 onwards||6 months to 48 months|
|Canara Bank||12.00%||Rs.10,000 to Rs.10 lakh||12 months|
|Muthoot Finance||0% to 27%||Rs.1,500 onwards||7 days to 12 months|
|Bajaj FinServ||12% onwards||Up to Rs.10 lakh||Up to 240 months|
|State Bank of India||9.70%||Rs.20,000 to Rs.20 lakh||12 months to 36 months|
|Kotak Mahindra Bank||10.50% to 17%||Rs.25,000 to Rs.25 lakh||3 months to 36 months|
|IndusInd Bank||11.25% to 15.50%||Up to Rs.10 lakh||3 months to 12 months|
|Manappuram Finance||Up to 29%||Up to Rs.1.5 crore||3 months|
*Repayment tenure has been taken as 6 months taking the purity of gold as 22k.
Gold loans are usually taken for shorter periods to fulfill immediate upcoming requirements like paying for a child’s education, planning a wedding, taking care of a medical emergency, etc.
Several lenders provide you loans on pledging gold at attractive interest rates. The loan amount varies based on the weight of gold that you pledge. The loan amount per gram is a figure that varies across banks. Some of the leading gold loan providers are listed below with the loan amount offered per gram:
|Lender||Loan Amount per gram of Gold|
The interest rate on gold loans will vary depending on the kind and purity of the gold ornaments you pledge. The purity of gold will also affect the amount of loan sanctioned by the lender. To avail a gold loan, the gold ornaments should be in the karat range of 18k to 24k which will be verified by the jewelry appraiser in the bank. If the gold ornaments are studded with precious stones, the weight of the latter will be excluded from the calculations.
No, lenders will not take into account your credit score when you apply for a gold loan. If you are above 18 years of age and have documents to prove your ownership of the gold, you can apply for a gold loan.
Yes. Since agriculture falls under the priority sector, farmers who wish to avail gold loans to fund their agriculture infrastructure or to meet their other farming-related activities, can get a rebate on the interest rates. The rebate can range between 1% and 2% and hence, they can get gold loans at an interest rate as low as 8%.
You can choose to repay your gold loan either by cash, funds transfer, demand draft (DD), or cheque.
Most lenders will offer the facility of part-prepayment but may charge a penalty. Ensure that you check for the charges before you decide to make a part-payment on your gold loan. However, to get your gold ornaments back, you will have to repay the entire outstanding amount. Having said that, there are some lenders who will be ready to release a part of your gold ornaments, in case you need it. One such lender is Bajaj FinServ.
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