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SBI, PNB, HDFC... Who has the lowest interest rate on gold loan? Check the rates of 24 banks

Navbharattimes | June 26, 2024 9:46 AM CST

Gold loans are preferred for their quick approval, low interest rates and minimal paperwork. Secured against gold jewellery, these loans meet your cash needs instantly. Flexible repayment options make gold loans even more convenient.

New Delhi: Gold loan is an easy financial facility. It can help you whenever you need money. Be it a foreign trip or sudden payment of a bill. Unlike other loans, you do not have to wait for much paperwork and approval. In gold loan, you have to submit fewer documents. Approval is also received quickly. This gives you immediate money when you need it. Gold loan is a secured loan. In this, you take money in exchange for your gold jewelry. This is an easy way through which you can get money while keeping your precious jewelry safe. Unlike other loans, in gold loan your gold is mortgaged. This reduces the interest rates. It becomes an attractive option for borrowers.

What documents are required to take a gold loan?

To take a gold loan, you have to provide some important documents. Such as passport, driving license, voter ID card, Aadhaar card or PAN card. Along with this, you will also have to provide a passport size photo of yours. If you are taking a loan for farming related work, then you will also have to provide some more documents related to farming.

Tenure for gold loan

The tenure of a gold loan may vary from bank to bank. Banks usually offer gold loans for a period ranging from 6 months to 42 months. The interest rate on gold loans in India ranges from 8% to 26% per annum. This rate is used to calculate the principal amount of your loan and the total interest. Borrowers can pay the interest in installments or by making a lump sum payment during their chosen loan tenure.

Interest rates on gold loan of different banks

Bank / NBFC	Interest Rate on Gold Loan	Processing Fees
Kotak Mahindra Bank	8.00% to 24.00%	Upto 2% + GST
HDFC bank	8.30% to 16.55%	1% of the sanctioned amount
Central Bank Of India	8.45% to 8.55%	0.50% of the loan amount
UCO Bank	8.50%	Rs 250 to Rs 5000 maximum
Indian Bank	8.65% to 9.00%	0.56% of sanctioned limit
Union Bank	8.65% to 9.90%	-
SB I	8.70%	0.50% + GST
Indusind Bank	8.75% to 16.00%	1% of the loan amount
Bandhan Bank	8.75% to 19.25%	1% + GST
Punjab And Sind Bank	8.85%	Rs. 500 to Rs. 10,000 maximum
Bank Of Baroda	9.15%	Applicable Fee + GST
Punjab National Bank	9.25%	0.75% of the loan amount
Bank Of Maharashtra	9.30%	Rs. 500 to Rs. 2000 + GST
Federal Bank	9.49%	-
City Union Bank	9.50%	No
Canara Bank	9.60%	Rs. 500 to Rs. 5000
Jammu and Kashmir Bank	10.00%	Rs 500 + GST
ICICI Bank	10.00%	1% of the loan amount
Karur Vysya Bank	10.25%	0.50% (including assessment charges)
South Indian Bank	10.01%	-
Karnataka Bank	11.21%	-
Axis Bank	17.00%	0.5% + GST
Muthoot Finance	22% per annum (with a discount of 2% if 100% interest is paid monthly)	-
AU Small Finance Bank	Upto 24.00%	1% + GST