|Interest Rate||7.50% p.a. onwards|
|Loan Amount||Up to Rs.1.5 crore|
|Loan Tenure||3 months onwards|
|Processing Fee||0% - 2% of the loan amount + GST|
Features of Gold Loan
Purpose: You can avail a gold loan 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.
|Gold Loan Providers||Interest Rate||Loan Amount||Tenure|
|Manappuram Gold Loan||Up to 29% p.a.||Rs.1,000 to Rs.1.5 crore||3 months onwards|
|SBI Gold Loan||7.50% p.a. onwards||Rs.20,000 to Rs.20 lakh||Up to 36 months|
|HDFC Gold Loan||9.90% to 17.90%||Rs.25,000 onwards (Rs.10,000 for rural areas)||3 months to 24 months|
|ICICI Gold Loan||10% p.a. to 19.76% p.a.||Rs.10,000 to Rs.10 crore||3 months to 12 months|
|Axis Gold Loan||15% p.a. onwards||Rs.25,001 to Rs.20 lakh||3 months to 36 months|
|Canara Gold Loan||7.65% p.a.||Rs.10,000 to Rs.10 lakh||Up to 12 months|
|Bank of Baroda Gold Loan||10.35% p.a.||Up to Rs.25 lakh||Up to 12 months|
|Karnataka Bank Gold Loan||Contact bank for updates||Up to Rs.5 lakh per account||Up to 12 months|
|PNB Gold Loan||7.8% p.a. onwards||Rs.25,000 to Rs.10 lakh||As per the lender’s terms and conditions|
|India Infoline (IIFL)||12% p.a. onwards||Rs.3,000 onwards||Up to 11 months|
|Kotak Mahindra Gold Loan||10.5% to 17% p.a.||Rs.25,000 to Rs.25 lakh||12 months onwards|
|Federal Gold Loan||8.50% p.a. onwards||Rs.1,000 onwards||As per the lender’s terms and conditions.|
|Central Bank of India||9.05% p.a. onwards (floating)||Up to Rs.20 lakh||Up to 12 months|
Gold Loan 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:
|Age of the applicant||18 years and above|
|Security to be pledged||Gold ornaments or articles|
|Total carats of gold that can be pledged||18 carats or above|
|Other criteria||Applicant must be creditworthy|
What are the 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.
Frequently Asked Questions
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