The first thing that concerns people while taking a loan is the interest amount they will have to pay to the lending institutions. Therefore, the financial service having a low rate of interest is availed more than the services with a higher rate of interest. This is the reason why Gold Loan is one of the fastest growing financial product in the market. Gold Loan Interest Rate is quite low and affordable in comparison to other services like Personal Loan and Home Loan.
Gold Loan Interest Rate 2019
- Interest Rate: Gold Loan Rate starts at 10.75% per annum.
- Processing Fees: The banks and lending institutions charge around 2% of the loan amount as processing charges.
- Loan Tenure: Six Months to 48 Months.
- Gold Loan Per Gram: The loan amount sanctioned for per gram of gold is around Rupees 1,750 to Rupees 2,100. Gold Loan Per Gram depends upon the purity of the gold.
Read more about Gold Loan Per Gram
Gold Loan Interest Rate of Different Banks - Updated on 27 Feb 2019
|Bank||Gold Loan Rate|
|SBI Gold Loan||11.50%|
|IIFL Gold Loan||11.75%|
|Allahabad Bank Gold Loan||11.75%|
|Muthoot Gold Loan||12.00%|
|Federal Bank Gold Loan||12.00%|
|Manappuram Gold Loan||12.25%|
|PNB Gold Loan||12.25%|
Which Bank offers the lowest Gold Loan Interest Rate?
On the basis of Gold Loan Rate, best bank to avail a gold loan is HDFC Bank. The Rate of this bank starts at 10.75% per annum which is least in contrast to other lending institutions. Also, HDFC Bank is one of the best private sector banks, hence it a safe option to avail this service. Next, the customer can also avail this service from Yes Bank as it second on the list of banks providing least Gold Loan Interest Rate at 10.85% per annum.
What is Gold Loan?
Gold Loan is a service that helps people to overcome financial instability in their life. To get a gold loan, one should have gold ornaments of purity between 18 Carat and 22 Carat. The applicant just has to keep gold ornaments in the bank as security in return of the loan amount. Moreover, anyone with weak CIBIL Score can also apply for this service. Furthermore, the employment status is not a concern for the lending institution thus anyone having gold on their name can apply for a loan.
What are the factors on which Gold Loan Interest Rate depends?
The Gold Loan Rate depends on different factors. They are discussed below:
The Amount of Loan: To begin with, Interest Rate depends upon the loan amount one wants to avail. The rate of interest decreases with an increase in the loan amount. Thus, the lower the amount one wants to avail, the higher will be the interest rate.
Internal/External Customer: Also, the customers who have an account in the respective bank they want to avail a loan from, they are given a rebate on the rate of interest.
LTV Ratio: The banks charge more interest from the people with higher LTV ratio.
HDFC Bank Gold Loan Interest Rate
HDFC Bank provides the service of Gold Loan at a reasonable interest rate. The Rate of Interest starts at 10.75% per annum and caup to upto 12.75% per annum.
- On average, the interest rate provided to the customers is around 11% per annum.
- Also, The Loan tenure ranges from 1 year to 4 years.
- Furthermore, the bank charges around 1.5% of the loan amount as the processing fees from the customers.
- Besides, the pre-closure charges if the loan is closed within 3 months is 2% of the amount of loan. Otherwise, it is 1% of the amount of loan.
Yes Bank Gold Loan Interest Rate
Yes Bank Gold Loan is a service that helps people to get cash against the gold jewelry. The Gold Loan Interest Rate starts at 10.85% per annum and can go up to 14.74% yearly.
- On average, the Gold Loan Interest Rate of Yes Bank is approximately 11.25% per annum.
- Also, the bank charges only 0.5% of the loan amount as prepayment charges, if the loan is repaid within the period of 6 months. After 6 months, Yes Bank charges nothing for pre-closing the loan.
- Next, the applicants can avail this service for 6 months to 36 months.
- Furthermore, the bank does not charge anything for processing the loan.
ICICI Bank Gold Loan Interest Rate
ICICI Bank is a private sector bank that provides the service of gold loan very quickly and with minimal documentation. The Gold Loan Interest Rate of ICICI Bank starts at 10.75% per annum and can go up to 17.30% per annum.
- On average, the rate of interest of ICICI Bank is around 11.75% per annum.
- Next, the loan period for this loan is between 6 months to 12 months.
- Furthermore, the bank charges 1% of the loan amount as the processing charges from the customers.
- Also, the pre-closure charges of ICICI Bank gold loan are 1% of the loan amount.
Manappuram Gold Loan Interest Rate
Manappuram is one of the best NBFC to avail a gold loan. The Interest rate of Manappuram starts at 10% per annum. And, it can go up to 28% per annum according to the requirement of the customer
- On average, Gold Loan Interest Rate of Manappuram is around 12.25% per annum.
- Furthermore, the loan is given to the customers from 1 day to 12 months.
- Next, Manappuram does not charge anything for the pre-payment of the amount of loan.
- Besides, the amount of loan can be between Rupees 1,000 and 1 Crore.
Muthoot Gold Loan Interest Rate
Muthoot Finance is also an NBFC that is famous for providing the service of Gold Loan. The Gold Loan Interest Rate of Muthoot starts at 12% per annum. And, it can go up to 26% per annum.
- On average, the Gold Loan Interest Rate is around 12.75% per annum.
- Furthermore, this NBFC charges 0.25% to 1% of the loan amount as the loan processing charges from the customers.
- Also, the loan tenure of this service is between 7 days to 36 months.
- Moreover, Muthoot does not charge anything from the customers for pre-closing the loan.
IIFL Gold Loan Interest Rate
IIFL charges around 12% per annum as Gold Loan Interest Rate from the customers. It can also go up to 14% per annum according to the customer.
- On average, IIFL charges 12.00% per annum as the rate of interest from the customers.
- Also, the loan tenure of this service is between 3 months to 11 months.
- Furthermore, IIFl does not charge anything from the customer for the processing of a loan.
SBI Gold Loan Interest Rate
State Bank of India is a public sector bank that provides the service of gold Loan to the customers. The Gold Loan Interest Rate starts at 10.75% and can go up to 12% per annum.
- On average, Gold Loan Interest Rate of SBI is around 11.50% per annum
- Moreover, the banks charge 0.50% of the loan amount as the processing charges from the customers.
- Furthermore, the loan tenure of this service is from 3 months to 36 months.
- Also, SBI does not charge anything for pre-closing the loan.
What are the Factors that Decide the Loan Amount?
The loan amount depends upon certain factors that are listed below:
Quality of Gold: First of all, the amount of loan that banks disburse to the customers depend upon the quality of the gold they want to keep as security. Thus, more the purity of gold, higher can be the amount of loan.
Note: Gold ornaments with 24 Carat purity are not given a loan. The purity should lie between 18 Carat-22 Carat.
Quantity of Gold: Next, the weight of gold also decides the loan amount. Hence, a customer having more quantity of gold is eligible for a higher loan amount.
What are Different Gold Loan Schemes?
The lending institutions provide different schemes to the customers for the repayment of the loan. The three main repayment schemes are:
- Term Loan: First of all, In this repayment scheme, the applicant has to pay only the interest rate during the loan tenure. After the completion of the loan period, the applicant has to pay the principal amount of the loan.
- EMI Facility: In EMI option, the applicant has to pay a fixed amount that consists of both interest rate and a part of the principal amount for the entire tenure of the loan.
- Overdraft Facility: This is a facility in which the applicant can enjoy liquidity anytime. That is, the applicant has to pay the rate of interest only for the amount that he has used from the total disbursed amount.
Gold Loan EMI Calculator
Gold Loan EMI Calculator helps one to understand the EMI that will have to be paid by the customer after availing a gold loan. You can easily know the EMI structure at the comfort of your home. Just Click Below and calculate your EMI.
What are Features of Gold Loan?
Transparent System: Firstly, the system of the gold loan is very clear therefore, there are no hidden norms
No Debt Burden: Next, There can be situations in which an applicant is not able to repay the loan amount in such a case the applicant will not be under debts as the bank will only confiscate the ornaments.
CIBIL Score: Moreover, the banks are not concerned about the Credit Score of a person. People with Weak CIBIL Score can also apply for a Gold Loa.
Low Rate of Interest: Major advantage, the applicant will have to pay the least interest rate in comparison to other loans.
Advantage on the rate of interest for Farmers: As a matter of fact, The farmers are given a rebate on the interest rate on availing this service.
No Income bounds: There are no restrictions on the salary or income of the applicant hence, anyone with any income rage can avail a gold loan.
Security of Assets: One of the major advantage, the applicant does not has to worry about the safety of the ornaments as it is the headache of the bank and not the owner.
Fast Process: This is a secured loan therefore, you can get your gold loan disbursed in just 30 minutes
Minimal Documents: Lastly, the applicant has to submit very fewer documents to avail a gold loan which makes it a hassle-free service.
How to Apply?
The applicant can apply for a Gold Loan at the comfort of their home. Thus, just visit www.dialabank.com. Then, fill a form online. After this, our relationship manager will get back to you to guide you through the process.
Besides, you can directly call on 95920-46860.
Click Here to Read more about Gold Loan.