Why not put gold to work for you? It's a precious asset that provides security and stability, so why not put it to work for you? A Gold Loan is a smooth option with minimum documentation and speedy disbursement. A Loan against Gold can be taken out at any time. Your monthly outgoings will be kept within your budget thanks to our flexible tenure and repayment choices.
Take out a gold loan from banks in India, with interest rates ranging from 7% to 29% per year. Depending on the loan scheme you choose, you can get a loan for up to Rs.1.5 crore with a payback period ranging from 3 months to 4 years. In the case of a financial emergency, you can pledge your gold decorations and jewelry for finances.
Features of Gold Loan in India
- Purpose: A gold loan may be used to fund a variety of requirements, including school expenses, medical situations, vacations, and so on.
- Security: The gold committed to the bank or financial institution acts as security or collateral for the loan amount.
- Options of Tenure: The tenure options can range from a minimum of 3 months to a maximum of 48 months.
- Fees: Other costs and charges that may apply to a gold loan include fees for processing, late payment fees/penalties for not paying interest, appraisal fees, and so on.
- Repayment : 3 types of main options offered from banks or FI to borrowers for the repayment of a gold loan. These are:
- Equated Monthly Installments for Repayment (EMI)
- Interest is paid every month, and the main loan balance is repaid after the loan term.
- Rebates: If the borrower repays the interest on a loan against gold regularly, some lenders will grant a reduction on the current interest rate. This refund might be anywhere between 1% and 2% of the initial interest rate.
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Gold Loan Interest Rates in India
The processing fees of the gold loan in India is 0% - 2% of the loan amount + GST
| Gold Loan Providers | Loan Amount | Tenure | Rate Of Interest | Locate Branches |
|---|---|---|---|---|
| Manappuram Gold Loan | Up to 1.5 cr | From 3 months & Above | Up to 29% p.a. | Manappuram Gold Loan Branches in India |
| SBI Gold Loan | Rs.20,000 to Rs.50 lakh | Till 36 months | 7.30% p.a. To 7.50% p.a. | SBI Gold Loan Branches in India |
| Muthoot Gold Loan | Rs.1,500 with no maximum limit | From 7 days to 36 months | 12% p.a. to 27% p.a. | Muthoot Gold Loan Branches in India |
| HDFC Gold Loan | Rs.25,000 onwards | 3 months- 36 months | 11% p.a. to 16% p.a. | HDFC Gold Loan Branches in India |
| Canara Gold Loan | Rs.5,000 to Rs.35 lakh | 12 months- 24 months | 7.35% p.a. | Canara Gold Loan Branches in India |
| Karnataka Gold Loan | Till Rs.25 lakh / account | 6 months - 12 months | 8.19% p.a. for Agri-based gold loan 8.49% p.a. - 8.79% p.a. | Karnataka Bank Gold Loan Branches in India |
| Bank of Baroda Gold Loan | Till Rs.25 lakh | 12 months- 24 months | 9.00% p.a. to 9.15% p.a. | BOB Gold Loan Branches in India |
| Axis Gold Loan | Rs.25,001 - Rs.25 lakh | 6 months - 36 months | 13.50% p.a. onwards | Axis Bank Gold Loan Branches in India |
| India Infoline (IIFL) | Rs.3,000 onwards | Till 24 months | 9.48%p.a.- 27% p.a. | IIFL Gold Loan Branches in India |
| Kotak Gold Loan | Rs.20,000 to Rs.1.5 crore | Up to 4 years | 10% p.a. to 17% p.a. | Kotak Gold Loan Branches in India |
| Indian Bank Gold Loan | Up to Rs. 75 Lakh | Up to 36 months | 7% p.a. onwards | Indian Bank Gold Loan Branches in India |
| Indus Ind Gold Loan | Up to Rs. 10 Lakh | Till 24 months | 10.00% - 16.50% | IndusInd Bank Gold Loan Branches in India |
| IDBI Gold loan | Up to Rs. 20 Lakh | Till 12 months | 7% p.a. onwards | IDBI Gold Loan Branches in India |
Manappuram Gold Loan
Vital Highlights:
- Any of the 13 gold lending options are accessible to you.
- Depending on the purity and net weight of the gold pledged, you may be eligible for a larger loan.
- This loan does not need the borrower to have a guarantor.
SBI Bank Gold Loan
- There are two types of gold loans offered by the lender: Gold Loan as well as Realty Gold Loan.
- SBI offers gold loans to anyone who is at least 18 years old. A person can take the gold loans from SBI bank in both ways individually and jointly.
- Gold Loan and Liquid Gold Loan payback terms are until 36 months.
- Internal / Penalties Charges: The applicant will be responsible for paying the appropriate gold appraiser fees.
HDFC Bank Gold Loan
- When applying for a loan, applicants must provide only a few documents.
- A one-percentage-point processing fee is applied to the loan amount.
- The time it takes to process and approve a loan is quite short.
- Penalties/other charges:
- A cost of Rs.350 + GST is charged for renewal processing. There will be stamp duty and statutory levies to pay.
- There will be a valuation charge of Rs.250 for loans up to Rs.1.5 lakh and Rs.575 for loans exceeding Rs.1.5 lakh.
- It will be necessary to pay 1% + GST in foreclosure fees.
Canara Bank Gold Loan
- The lender disburses the loan funds in a timely way.
- This loan does not need a guarantor.
- The application procedure is simple and straightforward.
- Penalties/Internal Charges:
- Borrowers will be responsible for paying the necessary gem appraisal fees.
- A fee of 0.50 percent of the loan amount is applied as a processing fee.
Axis Bank Gold Loan
- The gold that a borrower pledge is held in Axis Bank's vaults.
- The loan is granted the same day as the application is submitted.
- Customers can take out a gold loan from Axis Bank by guaranteeing gold coins and jewelry.
- Internal Charges/Penalties:
- There is a Rs.500 valuation fee.
- A fee of 0.50 percent of the loan amount is applied as a processing fee.
- On the outstanding loan amount, a monthly penalty interest rate of 2% will be applied.
IIFL Gold Loan
- Get accepted for a gold loan in 5 minutes and have it disbursed in 30 minutes.
- IIFL can tailor gold lending packages to meet your specific needs.
- There are several repayment alternatives available.
- Internal Charges/Penalties:
- For MTM a small fee of Rs.500 is charged.
PNB Gold Loan
- There are no fees for paying in advance.
- The lender has a simple application procedure.
- The lender will only take 22-carat gold as collateral for this loan.
- Penalties / other charges:
- The bank has eliminated the documentation fees for gold loans until December 31, 2022.
Documents and Eligibility Criteria for Gold Loan
If you want to take out a loan against your gold jewelry or accessories, you must first fulfill the lender's qualifying requirements. Keep in mind that qualifying requirements differ from one lender to the next. Before applying for a gold loan, it is essential to review the qualifying conditions listed on the lender's website. The following mentioned are the common qualifying requirements:
- Age of the Applicant: 18 years or above
- Securities: A gold ornament or jewelry
- Purity of gold: 18 carats or above
- Other Criteria: Creditworthy Indian citizen
What are the Documents Required for Gold Loan?
To obtain a gold loan, the borrower must often furnish the following documents:
- Completely filled application form
- Passport.size photographs
- Proof of your identity
- Proof of Address
- Proof of Signature
- PAN card or Form 60
- Age verification is required
- Documents related to loan payout, if any
How To Apply for a Gold Loan?
Step 1: You might be able to apply for a gold loan either online or in person. To apply for a loan online, go to the lender's website and choose the loan product you want to apply for, which in this case is a 'Gold Loan.' If this option is accessible on the website, you must next click on 'Apply Now'. Following that, you must fill out the online application form with the relevant information and submit it online.
Step 2: If you are unable to apply for a loan on the bank's website, you must go to the lender's local branch. You will need to go to the lender's local branch. Customers can use their official website to locate the nearest branch of several lenders. Make sure you have a copy of the essential paperwork on you at all times.
Step 3: Once you've submitted your application, the lender will review it. You will only be allotted loan money if the application is accepted. In the case of a financial emergency, a gold loan is a quick and simple solution to obtain cash. Make sure you conduct the necessary research and obtain a gold loan that is appropriate for your needs and repayment capabilities.
