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  • Compare Best Gold Loans in India 2019

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  • Pledge your gold ornaments and jewellery for funds in the event of a financial emergency. More than 20 leading banks and financial institutions offer gold loans to prospective customers at attractive interest rates. The gold that you pledge will act as the collateral against which you can avail the loan from a lender. The loan amount will depend on the rate of the gold pledged, per gram. Mobilise your personal assets today to fund your financial requirements immediately.

    Listed below are a few banks and financial institutions in India that offer gold loans to customers:

    Gold Loan Providers Interest Rate Loan Amount Tenure
    Manappuram Finance Limited Up to 28% p.a. Rs.1,000 to Rs.1.5 crore 3 months onwards
    State Bank of India 9.8% p.a. onwards Rs.20,000 to Rs.20 lakh Up to 36 months
    HDFC Bank 12.04% p.a. onwards Rs.50,000 onwards (Rs.10,000 for rural areas) 6 months to 48 months
    ICICI Bank 11% p.a. onwards Rs.10,000 to Rs.15 lakh Up to 6 months/12 months
    Axis Bank 15% to 17.5% p.a. Rs.25,001 to Rs.20 lakh 6 months to 36 months
    Canara Bank 11.95% p.a. onwards Rs.10,000 to Rs.10 lakh Up to 12 months
    Bank of Baroda 11.65% p.a. onwards Rs.25,000 to Rs.10 lakh Up to 12 months
    Karnataka Bank 10.65% p.a. onwards Up to Rs.5 lakh per account Up to 12 months
    Punjab National Bank 10.05% to 11.05% p.a.
    • Productive purposes: No limit
    • Non-productive purposes: Up to Rs.10 lakh
    As per the lender’s terms and conditions
    India Infoline (IIFL) 9.24% to 24% p.a. Rs.3,000 onwards 3 to 11 months
    Kotak Mahindra Bank 10.5% to 17% p.a. Rs.25,000 to Rs.25 lakh 3 to 36 months
    Federal Bank 13.25% p.a. onwards Rs.1,000 onwards As per the lender’s terms and conditions.
    Central Bank of India 10.65% p.a. onwards (floating) Up to 50 grams of gold can be pledged as security Up to 12 months

    Note: For certain loans, the interest rate has been calculated by taking the lender’s MCLR, as on 14 March 2019, into account.

    *The interest rate mentioned was offered to customers between October and December 2018.

    Manappuram Finance Limited

    Benefits/Key Highlights:

    • The lender offers 13 different gold loan schemes – GL-DS Scheme, GL-SY Scheme, Privilege Loan (GL-PL), Express Gold Loan Plus (GL-XG+), Super Loan Plus (GL-SG+), Samadhan Plus (GL-SA+), Swarna Shakthi (GL-SX), GL B1+N, GL B1-N, GL B2+, GL H3+, Business Loan (GL BL), and the GL B4+.
    • Each of these schemes has unique features and benefits. For example, the maximum loan tenure for the GL-DS Scheme is 90 days, whereas the maximum loan tenure for the Express Gold Loan Plus (GL-XG+) is 180 days, while the maximum tenure for the Samadhan Plus (GL-SA+) is 365 days.
    • Customers can pledge their jewellery and gold ornaments to avail a gold loan from Manappuram Finance Limited.
    • Customers can repay the loan amount or the accrued interest at any time during the loan tenure.
    • The borrower is not required to have a guarantor to avail this loan.
    • Loan applications are approved within minutes once the applicant submits the application form and the required documents.
    • The loan amount can be repaid at the end of the loan tenure. Thus, borrowers do not have to pay EMIs on a monthly basis.
    • Any ornaments that are pledged by a customer will be stored in a strong safe or a strong room. The ornaments will also be insured for their full value. The lender also makes use of electronic surveillance technology for additional security.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Manappuram Finance Limited
    Rs.10
    NA
    Nil

    Penalties/Internal Charges:A penal interest of 3% on the amount that is due will be charged if the loan amount is not repaid at the end of the loan tenure.

    State Bank of India

    Benefits/Key Highlights:

    • The lender offers three types of gold loans – Gold Loan, Liquid Gold Loan, Bullet Repayment Gold Loan.
    • The Gold Loan is offered by SBI for a 36-month term. For this loan type, the repayment of the principal and interest will occur on a monthly basis after disbursal of the loan amount.
    • The Liquid Gold Loan can also be availed for a term of up to 36 months.
    • For the Bullet Repayment Gold Loan, the repayment of the loan amount will have to be done on or before the completion of the loan tenure. This loan is offered for a maximum period of 12 months.
    • Customers who wish to avail this loan can pledge their gold ornaments and gold coins that are sold by banks.
    • Individuals over the age of 18 years can apply for a gold loan from SBI.
    • The loan can also be availed by pensioners.
    • Loans are processed in a timely manner by the lender.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    State Bank of India
    0.5% of the loan amount plus tax
    Rs.16,087
    As per the lender’s terms and conditions

    Note: For the EMI calculation, it is assumed that a loan amount of Rs.5 lakh has been availed at an interest rate of 9.8% p.a. for a tenure of 3 years.

    Joint Loan Facility: Gold loans from SBI can be availed by individuals on a single or joint basis.

    Penalties/Internal Charges: Applicant will have to pay the applicable gold appraiser charges.

    HDFC Bank

    Benefits/Key Highlights:

    • Loans are disbursed within 45 minutes, subject to successful approval.
    • Applicants have to submit minimal documents when applying for the loan.
    • There are no hidden fees or charges that will be levied by the lender.
    • Individuals who have an existing relationship with the bank are offered preferred rates.
    • Gold that is pledged is kept in the lender’s locker, thus ensuring complete security.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    HDFC Bank
    1.5% of the loan amount plus GST
    As per the lender’s terms and conditions
    As per the lender’s terms and conditions

    Penalties/Internal Charges:

    • A valuation fee of Rs.250 for loans up to Rs.1.5 lakh and Rs.500 for loans over Rs.1.5 lakh will have to be paid.
    • Foreclosure charges of 2% plus GST will have to be paid if the loan is closed within a period of 3 months. Foreclosure charges of 1% plus GST will have to be paid if the loan is closed within a period of 6 months.
    • A late payment fee of 2% p.a. over the applicable interest rate will be charged.
    • Stamp duty charges and statutory charges will have to be paid.
    • A renewal processing fee of Rs.350 plus GST is applicable.

    ICICI Bank

    Benefits/Key Highlights:

    • Customers can pledge their gold jewellery to avail a gold loan from ICICI Bank.
    • The loan amount is disbursed to the applicant’s account in 60 minutes, provided that the application is approved.
    • Minimal documentation is required to apply for this loan.
    • The loan amount with the payable interest can be paid at the completion of the loan tenure.
    • Loans can be renewed by paying the applicable fee.
    • The gold that is pledged is kept in a secure vault safe in ICICI Bank’s strong rooms. The gold is valued in your presence, sealed, and kept in a safe.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    ICICI Bank
    1% of the loan amount
    NA
    As per the lender’s terms and conditions

    Penalties/Internal Charges:

    • A foreclosure fee of up to 1% may be charged.
    • Applicants will have to pay documentation charges of Rs.199
    • If loan renewal is required, a fee ranging between Rs.300 and Rs.1,000 will have to be paid.
    • The applicable stamp duty charges will have to be paid.
    • Overdue handling charges between Rs.200 and Rs.1,700 will be charged for delinquent accounts.

    Axis Bank

    Benefits/Key Highlights:

    • Customers can avail this gold loan from Axis Bank by pledging their gold coins and gold ornaments.
    • The loan amount is disbursed on the same day that the application is made.
    • Individuals between 18 years and 75 years of age can avail this loan.
    • Prospective borrowers can apply for a gold loan from Axis Bank through online channels.
    • Customisable loan tenure options are offered.
    • The gold that is pledged by a borrower is kept in Axis Bank’s bank vaults.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Axis Bank
    1% of the loan amount plus GST
    Rs.87,017
    As per the lender’s terms and conditions

    Note: For the EMI calculation, it is assumed that a loan amount of Rs.5 lakh has been availed at an interest rate of 15% p.a. for a tenure of 6 months.

    Penalties/Internal Charges:

    • A valuation fee of Rs.500 is charged.
    • A penal interest of 2% will be charged on a monthly basis on the overdue loan amount.

    Canara Bank

    Benefits/Key Highlights:

    • Creditworthy individuals who have a savings bank account with the lender and new customers who are introduced can avail the Swarna Loan (Gold Loan) from Canara Bank.
    • Eligible individuals can avail the Swarna Loan against their gold ornaments and gold coins that are specially minted and sold by banks.
    • The loan amount is disbursed in a timely manner by the lender.
    • No guarantee is required to avail this loan.
    • The application process is hassle-free.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Canara Bank
    1% of the loan amount, subject to a minimum of Rs.1,000 and a maximum fee of Rs.5,000
    NA
    As per the lender’s terms and conditions

    Penalties/Internal Charges:

    • Borrowers will have to pay for the applicable jewel appraising charges.

    Bank of Baroda

    Benefits/Key Highlights:

    • Any individual who owns gold jewellery, gold coins, or ornaments can avail this loan.
    • The loan can be availed for any purpose, provided it is not for speculative purposes.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Bank of Baroda
    0.5% plus service tax
    As per the lender’s terms and conditions
    As per the lender’s terms and conditions

    Karnataka Bank

    Benefits/Key Highlights:

    • This gold loan can be availed by pledging your gold ornaments.
    • Individuals can avail this loan for business needs, agricultural purposes, or personal requirements.
    • Loans are sanctioned quickly.
    • The application process is extremely simple.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Karnataka Bank
    As per the lender’s terms and conditions
    As per the lender’s terms and conditions
    As per the lender’s terms and conditions

    Punjab National Bank

    Benefits/Key Highlights:

    • This loan can be availed for non-productive purposes such as medical needs, wedding expenses, etc., or for productive purposes such as funds for agricultural or other allied activities.
    • Individuals who are interested to avail this loan can pledge their gold ornaments, gold jewellery, or gold coins, provided that the coins are issued by Punjab National Bank or a scheduled bank. For gold coins, the weight of the coin(s) cannot be more than 50 grams per customer.
    • The lender offers a convenient application process.
    • Only 22-carat gold is accepted by the lender as security for this loan.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Punjab National Bank
    0.25% of the loan amount
    As per the lender’s terms and conditions
    Nil

    Penalties/Internal Charges:

    • Documentation charges of Rs.250 will be availed.

    India Infoline (IIFL)

    Benefits/Key Highlights:

    • Individuals who are in need of emergency funds can avail this loan by pledging their gold ornaments to the lender.
    • The lender offers a simple loan application process, with loans being approved in 5 minutes.
    • Approved loans are disbursed within 30 minutes.
    • The lender offers customised schemes that are especially catered to meet your financial needs.
    • The lender offers flexible repayment options.
    • Pledged assets are kept securely. The lender also provides insurance for the assets that are pledged by customers.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    India Infoline (IIFL)
    Rs.0 onwards
    As per the lender’s terms and conditions
    Rs.0 to Rs.150

    Penalties/Internal Charges:

    • MTM charges of Rs.500 are levied.

    Kotak Mahindra Bank

    Benefits/Key Highlights:

    • Any gold ornaments or coins that are 18 carats and above will be accepted by the lender.
    • Prospective borrowers do not have to be a customer of the bank to avail the loan.
    • The loan is offered with three repayment options – Term Loan – Bullet, Term Loan – EMI, and Overdraft facility. Under the Term Loan – Bullet option, the interest will have to be paid on a monthly basis, while the principal amount will have to be paid at the completion of the loan term. Under the Term Loan – EMI option, borrowers will have to repay the loan via Equated Monthly Installments.
    • Individuals who are over the age of 18 years can avail this loan.
    • Utmost safety of pledged assets is guaranteed by the lender.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Kotak Mahindra Bank
    Up to 2% of the loan amount
    Rs.86,027
    As per the lender’s terms and conditions

    Note: For the EMI calculation, it is assumed that a loan amount of Rs.5 lakh has been availed at an interest rate of 11% p.a. for a tenure of 6 months.

    Penalties/Internal Charges:

    • The applicable stamping charges will have to be paid by the borrower.
    • Credit appraisal charges will be levied by the lender. This is subject to a minimum charge of Rs.250 and a maximum of Rs.2,000.
    • Commitment charges of Rs.1,250 per quarter or 0.5% per quarter may be applicable.
    • If the loan amount is overdue, a 3% interest on the due amount will be charged.
    • A collection fee may be charged, subject to a maximum of 30% of the overdue sum.
    • Dishonour charges of Rs.750 will be levied per instance.
    • Swap charges of Rs.500 per instance may be charged.
    • If a no due certificate is required, a maximum fee of up to Rs.50 may be levied.

    Federal Bank

    Benefits/Key Highlights:

    • Gold ornaments that have a purity of 22 carats can be pledged.
    • Loans are sanctioned instantly.
    • The lender offers hassle-free processing and quick loan disbursal, with minimal paperwork.
    • The repayment tenure is flexible to help borrowers opt for a term that is suitable for them.
    • There are no hidden charges.
    • Existing customers need not submit any documents to avail this loan.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Federal Bank
    As per the lender’s terms and conditions
    Rs.17,304
    As per the lender’s terms and conditions

    Note: For the EMI calculation, it is assumed that a loan amount of Rs.1 lakh has been availed at an interest rate of 13% p.a. for a tenure of 6 months.

    Central Bank of India

    Benefits/Key Highlights:

    • The Cent Personal Loan can be availed to meet any emergency financial needs that may have risen. Keep in mind that you cannot apply for this loan if it is meant for an agricultural purpose.
    • Gold coins or gold ornaments that have 22-carat purity can be pledged. Individuals who wish to pledge gold coins can pledge up to 50 grams, per person.
    • The application process is hassle-free.
    Bank Name
    Processing Fee
    EMI
    Pre-Closure Charges
    Central Bank of India
    0.5% of the loan amount including tax
    Rs.17,205
    As per the lender’s terms and conditions

    Note: For the EMI calculation, it is assumed that a loan amount of Rs.1 lakh has been availed at an interest rate of 11% p.a. for a tenure of 6 months.

    Penalties/Internal Charges:

    • The borrower will have to pay the applicable appraiser fee.

    How to Apply for a Gold Loan?

    Step 1: You may be able to apply for a gold loan through online or offline channels. To apply online, you will need to visit the lender’s website and click on the loan product that you wish to apply for, which in this case would be ‘Gold Loan’. Next, you will need to click on ‘Apply Now’, if this option is available on the website. Post this, you will have to enter the required details into the online application form and submit the form online.

    Step 2: If there is no option to apply for the loan through the lender’s website, you will need to visit the nearest branch of the lender. Many lenders give customers the option of locating the nearest branch through their official website. Make sure to carry a copy of the required documents with you.

    Step 3: Once you submit the application form, the lender will verify your application. If the application gets approved, you will receive the loan amount.

    Step 4: A gold loan is a quick and easy way to get funds in the event of a financial emergency. Ensure that you do the required research and avail a gold loan that is suitable for your requirements and repayment capacity.

    Features of Gold Loans

    Purpose: You can avail a gold loan from any available lender in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, and so on.

    Security: The gold that has been pledged with the bank or the financial institution acts as the security or collateral against which the loan amount is provided.

    Tenure options: The tenure options can range from a minimum of 3 months to a maximum of 36 months.

    Fees: The other fees and charges that might be applicable on a gold loan are – processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.

    Repayment Options: There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are:

    • Repayment in Equated Monthly Installments (EMI)
    • Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure.
    • Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure.

    Rebates: Several lenders offer the option of discount on the prevailing interest rate on the loan against gold if the borrower repays the interest regularly. This rebate can be 1% - 2% off on the original rate of interest.

    Eligibility

    If you wish to avail a loan against your gold jewellery or ornaments, you should ensure that you meet the eligibility criteria specified by the lender. Keep in mind that the eligibility criteria will vary from lender to lender. Thus, it is advisable to check the eligibility criteria that is specified on the lender’s website before applying for a gold loan. Listed below are the generalised eligibility criteria:

    • The applicant should have attained at least 18 years of age.
    • The individual should have gold ornaments or articles that can be pledged.
    • Lenders will require the gold that is to be pledged to be 18 carats or above.
    • The applicant should be creditworthy.

    Documents Required

    Generally, the following documents have to be provided by the borrower in order to avail the gold loan:

    • Duly-filled application form
    • Passport sized photographs
    • Identity proof
    • Address Proof
    • Signature Proof
    • Form 60 or PAN card
    • Proof of age
    • Post-loan disbursement documents, if any.

    Things to Consider When Taking a Gold Loan

    Listed below are a few things that you should take into consideration before applying for a gold loan in order to ensure that you have a good borrowing experience:

    • Loan Amount: When you avail a gold loan, the loan amount that you receive will be based on the value of the gold that you pledge. Lenders may have also specified a minimum and maximum loan amount. Thus, if you need to avail a particular loan amount, you should make sure that you have the required gold and ensure that it falls within the limits specified by the lender.
    • Rate of Interest: When compared to an unsecured loan, the interest rate charged for a gold loan is lesser since the borrower will have to provide collateral. That said, the interest rate charged will vary from lender to lender, and it is in your best interest to compare the interest rates charged by different lenders.
    • Applicable Charges: In addition to the interest rate, lenders may levy a number of other charges such as the processing fee, documentation fee, appraiser fee, payment default fee, loan overdue fee, etc. These charges, cumulatively, can increase the total cost of the loan. Thus, ensure that you take the charges levied by the lender into account before applying for a gold loan.
    • Tenure of the Loan: The repayment tenure for gold loans can range between 3 months and 36 months. Therefore, you should make sure to take your repayment ability into consideration and opt for a gold loan with a suitable loan tenure.
    • Credibility of the Lender: There are a number of banks and financial institutions that offer gold loans as part of their product portfolio. Before submitting an application to a particular lender, make sure that you check how credible the lender is. You should, thus, check the safety measures that are undertaken by the lender to keep your assets safe, online reviews, customer services channels offered, etc.
    • Repayment Schedule: The repayment schedule for gold loans is quite flexible. Based on the lender that you choose, you may be able to make repayments in the form of EMIs, pay the principal and the interest at the end of the policy term, or pay the interest on a monthly basis and pay the principal at the completion of the policy term. Hence, you should consider which repayment structure suits you best and choose the lender accordingly.
    • Comparison of Loans: It is highly recommended that you compare the features, benefits, and terms and conditions of the gold loans offered by different lenders before applying for a loan.
    • Eligibility Criteria: To increase the chances of your loan application getting approved, you should check the lender’s eligibility criteria before applying for the loan.

    Gold Loan FAQs

    What is a gold loan?

    A gold loan is a method of availing finance/loan against your gold ornaments or jewellery such as bangles, necklaces, bracelets, earrings, pendants, watches, gold coins, etc.

    Who can avail a gold loan?

    Any Indian citizen can avail a gold loan from banks or non-banking financial institutions (NBFCs) and generally the age criteria ranges from a minimum of 18 years to a maximum of 75 years. This might vary from lender to lender.

    What are the modes for repayment of gold loans?

    You can either directly walk into a branch to make a cash payment or pay online using the company’s web portal. Based on the lender’s terms and conditions, you may be able to make the payment with your debit card, credit card, etc. Kindly contact your lender for more information on the same.

    What factors affect the loan amount received against the gold ornaments pledged with the lender?

    Factors such as rate of gold on the particular date, purity of the gold used to make the jewellery, etc. affect the loan amount that you will receive against the gold ornaments pledged with the lender.

    How long will it take for me to receive the loan amount?

    Lenders usually verify and approve gold loan applications in a timely manner. Once your application is approved, you will receive the loan amount. The disbursal time may vary from a few minutes to up to 48 hours, in most cases.

    Is it safe to pledge my gold ornaments? What measures does the lender take to ascertain the safety of my assets?

    Most lenders store pledged assets in a strong room that has electronic surveillance technology. Also, lenders may insure the gold ornaments or assets for their total value. That said, given the nature and value of the assets, it is best to do your research with regard to the measures that are taken by the lender to safeguard your jewellery and assets.

    Can I pre-pay the loan amount?

    This will vary based on the lender’s terms and conditions. Certain lenders may allow you to pre-pay the loan amount at any time, without having to pay a fee for the same. In some cases, certain financial institutions and banks will require you to pay a certain fee if you want to pre-pay the loan amount.

    What will happen if I am unable to repay the loan amount?

    If you don’t repay the loan amount within the due date, the lender will levy a penalty on the overdue loan amount. If you do not repay the loan amount even after multiple reminders, the lender may auction your gold ornaments to recover the amount that is due.

    Do I have to be an existing customer of a bank/financial institution to avail a gold loan?

    Most lenders will allow you to avail a gold loan even if you are not an existing customer, provided that you have a good credit score. In certain cases, the lender may require an existing customer to introduce you before you apply for the loan.

    How do I check how much I am eligible to borrow?

    Most lenders have an eligibility calculator on their respective websites, which you can use to know how much you are eligible to borrow. The amount that you will be allowed to borrow will be based on the value of your ornaments or jewellery.

    Am I required to have a guarantor to apply for a gold loan?

    Most lenders who offer gold loans do not require prospective applicants to have a guarantor. However, for high-value loans, you may be required to have a guarantor.

        

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