Gold Loan Interest Rate

Gold Rate: ₹ 5,121 Per Gram

⍟ Interest Rate 7.0% p.a. ⍟

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Gold Loan Interest Rate September 2020

Feature
Gold Loan
Interest Rate
Processing Fee
Tenure
HDFC Gold Loan 9.90% 0.25 % – 1.50% 3 – 24 Month
ICICI Gold Loan 10.50% 0.25 % – 1.50%  9 – 24 Months
Axis Gold Loan 10.50% 0.50% – 1.50% 6 – 24 Months
Yes Bank Gold Loan 10.50% 0.50% – 1.50% 6 – 36 Months
SBI Gold Loan 9.50% 500/- to 0.50% 6 – 36 Months
Kotak Gold Loan 11.00% 1% to 2% 9 – 24 Months
IIFL Gold Loan 12.00% Nil 3 – 11 Months
Muthoot Finance Gold Loan 12.00% Nil 1 – 24 Months
Manappuram Gold Loan 12.50% Nil 6 – 12 Months
PNB Gold Loan 11.00% 0.70% to 1% 6 – 12 Months
Canara Bank Gold Loan 10.75% 1 % 6 – 12 Months
IndusInd Bank Gold Loan 11.50% 1% – 1.5% 9 – 24 Months

gold loan interest rate

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.

  1. Interest Rate: Gold Loan Rate starts at 9.90% per annum.
  2. Processing Fees: The banks and lending institutions charge around 2% of the loan amount as processing charges.
  3. Loan Tenure: Six Months to 48 Months.
  4. 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.

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 Gold Loan Interest Rate of this bank starts at 9.90% per annum which is the lowest 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 9.90% per annum.

Feature
HDFC Bank
ICICI Bank
Muthoot Finance
Gold Loan Interest Rate
9.90%
10.50%
12%
Gold Loan Min Loan Amt
Metro : 25000, Non : 15000
25000
15000
Gold Loan Max Loan Amt
1 Cr
1 Cr
1 Cr
Gold Loan Tenure
3 months to 24 months
9 months to 24 months
1 month to 24 months
Gold Loan Processing Fee
0.25% to 1.50% of the Loan Amt
0.25% to 1.50%
Nil
Gold Loan Preclosure Chgs
2%, Nil foreclosure charges after 3 months
2%, Nil foreclosure charges after 9 months
Nil
Gold Loan Overdraft Facility
Yes
Yes
Yes
Gold Loan Pay Only Interest Facility
Yes
Yes
Yes
Gold Rate Per Gram
2500
2600
2700*

What is a 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 the 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 9.99% per annum and can go up to up to 12.75% per annum.

  1. The current interest rate provided to the customers is 9.99% per annum.
  2. Also, The Loan tenure ranges from 1 year to 4 years.
  3. Furthermore, the bank charges around 1.5% of the loan amount as the processing fees from the customers.
  4. 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.
Bank Interest rate Tenure Processing Fee
HDFC Bank gold loan 9.90% 1-4years 1.50%

Yes Bank Gold Loan Interest Rate

Yes Bank Gold Loan is a service that helps people to get cash against the gold jewellery. The Gold Loan Interest Rate starts at 10.99%.

  1. On average, the Gold Loan Interest Rate of Yes Bank is approximately 10.99% per annum.
  2. 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.
  3. Next, the applicants can avail this service for 6 months to 36 months.
  4. Furthermore, the bank does not charge anything for processing the loan.
Bank Interest rate Tenure Processing Fee
Yes Bank gold loan 10.99% 6-36 months NIL

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 10.00% per annum.

  1. On average, the rate of interest of ICICI Bank is around 10.00% per annum.
  2. Next, the loan period for this loan is between 6 months to 12 months.
  3. Furthermore, the bank charges 1% of the loan amount as the processing charges from the customers.
  4. Also, the pre-closure charges of ICICI Bank gold loan are 1% of the loan amount.
Bank Interest rate Tenure Processing Fee
ICICI Bank gold loan 10.00% 6- 12months 1.00%

Manappuram Gold Loan Interest Rate

Manappuram is one of the best NBFC to avail a gold loan. The Interest rate of Manappuram starts at 12.00% per annum. And, it can go up to 28% per annum according to the requirement of the customer

  1. On average, Gold Loan Interest Rate of Manappuram is around 12.00% per annum.
  2. Furthermore, the loan is given to the customers from 1 day to 12 months.
  3. Next, Manappuram does not charge anything for the pre-payment of the amount of loan.
  4. Besides, the amount of loan can be between Rupees 1,000 and 1 Crore.
Bank Interest rate Tenure Processing Fee
Manappuram gold loan 12.00% 1 day- 12months NIL

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.

  1. On average, the Gold Loan Interest Rate is around 12.00% per annum.
  2. Furthermore, this NBFC charges 0.25% to 1% of the loan amount as the loan processing charges from the customers.
  3. Also,  the loan tenure of this service is between 7 days to 36 months.
  4. Moreover, Muthoot does not charge anything from the customers for pre-closing the loan.
Bank Interest rate Tenure Processing Fee
Muthoot gold loan 12.00% 7 days- 36 months 0.25%-1%

IIFL Gold Loan Interest Rate

IIFL charges around 9.24% per annum as Gold Loan Interest Rate from the customers. It can also go up to 14% per annum according to the customer.

  1. On average, IIFL charges 9.24% per annum as the rate of interest from the customers.
  2. Also, the loan tenure of this service is between 3 months to 11 months.
  3. Furthermore, IIFl does not charge anything from the customer for the processing of a loan.
Bank Interest rate Tenure Processing Fee
IIFL gold loan 9.24% 3-11 months NIL

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 7.50% per annum.

  1. On average, Gold Loan Interest Rate of SBI is around 7.50% per annum
  2. Moreover, the banks charge 0.50% of the loan amount as the processing charges from the customers.
  3. Furthermore, the loan tenure of this service is from 3 months to 36 months.
  4. Also, SBI does not charge anything for pre-closing the loan.
Bank Interest rate Tenure Processing Fee
SBI gold loan 7.50% 3-36 months 0.50%

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?

gold loan interest rateThe lending institutions provide different schemes to the customers for the repayment of the loan. The three main repayment schemes are:

  1. 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.
  2. 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.
  3. 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.
  4. Agricultural Gold Loans: is a scheme specifically for loans to farmers and agriculturists against gold jewellery and to assist them with financial aid for crop production expenses and encouraging investment in agriculture or allied agricultural activities. Key Features of agricultural loan against gold are:
    • Proof of land records is required to avail a loan under this scheme.
    • This scheme is categorized under priority sector lending i.e. for agriculture and is eligible for interest subvention scheme from government, which eventually reduces the interest for the borrower.
    • The loan tenure for under this scheme is of 3 years.
    • Overdraft facility is also available on such loans.
    • Interest Rate on agricultural loan against gold ranges from 8.00 to 10.00 %.
  5. Non-agricultural loans against gold: Loans offered to the other categories of borrowers except farmers and agriculturists are known as non-agricultural gold loans. These loans are available to all individuals including salaried, self-employed professionals, businessmen, women, entrepreneurs, housewives, students, retired officials who own gold and want to use the same for financial credit. 
  6. Bullet Repayment: is a scheme in which the entire principal amount is repaid at the end of the tenure. This repayment option is highly beneficial for a shorter tenure, as this allows the borrower to utilize all borrowed funds for the required purpose and hence, save them from the burden of repaying principal every year.
    • The entire loan amount is repaid at the end of the tenure
    • Interest is calculated on a monthly basis, with an option to pay interest only EMIs every month, where you pay monthly interest in the form of EMIs
    • Some banks allow a lower LTV of 65% on bullet repayment scheme compared to maximum LTV of 75% on other loan schemes

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. Check the pre-calculated EMI Table below:

Rate
5 Yrs
4 Yrs
3 Yrs
10.50%
2149
2560
3250
11.00%
2174
2584
3273
11.50%
2199
2608
3297
12.00%
2224
2633
3321
12.50%
2249
2658
3345
13.00%
2275
2682
3369
13.50%
2300
2707
3393
14.00%
2326
2732
3417
14.50%
2352
2757
3442
15.00%
2378
2783
3466

 

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 Gold Loan Interest Rate: 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 Dialabank website. Then, fill a simple form online. After this, our relationship manager will get back to you to guide you through the process.

Besides, you can directly call on 9878981144

Click Here to Read more about Gold Loan.

gold loan at 7%

FAQ’s About Gold Loan Interest Rates

✅ Am I eligible to avail a gold loan?

Yes, you are eligible to apply for a gold loan provided you fulfil the age eligibility requirements and own gold jewellery. 

✅ How long would it take to process my Gold Loan?

A gold loan from any bank usually gets disbursed within an hour. However, this is subject to the loan amount, verification of the gold quality and the verification of the documents that you submit.

✅ What type of security is needed to avail a gold loan?

The loan amount is given against the gold pledged by you. Hence, the only security required is a gold ornament.

✅ What is the interest rate on my gold loan?

The interest rate on gold loan keeps changing from time to time and from one lender to another. The current lowest interest rate offered by a lender stands at 9.90% offered by HDFC Bank.

✅ Is it possible to repay my gold loan amount partially?

Yes, you can make part-payment but the gold jewellery will only be released after the entire outstanding amount is repaid.

✅ Can I prepay or foreclose my gold loan?

Yes, one can prepay or even foreclose the loan amount. But, certain lenders charge a penalty fee if a customer wants to prepay or foreclose the loan before the loan tenure ends. These charges range from 2-4%. 

✅ How much amount can I expect for my gold?

The loan amount is completely dependent upon the quality and quantity of the gold you are pledging as a security with the bank. It is also dependent on the carats of gold jewellery. 

✅ What is the gold loan interest rate?

Gold loan interest is the monthly amount a borrower pays in addition to the principal loan amount. Different banks and financial institutes offer different rates of interest. On average, this rate varies between 9.99% and 12% per annum.

How to calculate the EMI for a gold loan?

To calculate EMI for you need the following three parameters namely,

  • P – principal loan amount,
  • r – the rate of interest per month, and
  • n – loan tenure in months.

The formula to calculate gold loan EMI is, E =  P x r x [((1+r)^n)/((1+r)^n)-1]

What is the interest rate prevailing on an agriculture gold loan?

Agricultural gold loans start at a very low-interest rate of just 7% per annum. A person is required to present proof of agricultural land and cultivation along with the basic documents required like Aadhar Card and PAN Card that are required.

What is the margin in a loan against gold?

Banks and NBFCs keep a margin of at least 25% in the case of gold loans. Which means, a person can avail a maximum of 75% of their entire gold’s market value as the loan amount. For example, if your gold is valued at Rs. 1 Lakh in the market then banks will offer you a maximum loan amount of Rs. 75,000, keeping Rs 25k as a margin.

Which bank gives the highest gold loan?

HDFC Bank is currently the best bank to avail a gold loan as it provides gold loans at an LTV ratio of 75% which means you can avail a loan amount of up to 75% of your gold’s market value that too at a minimum rate of interest of 9.99% only. The gold loan amount in HDFC starts at Rs. 25000 for urban areas and at Rs. 10000 for rural areas.

How is Gold Loan calculated?

The gold loan amount depends upon the golds purity and the current market gold rate. The rate of interest is then calculated based upon a number of factors including, loan amount, tenure, interest rates prevailing with the lender, and loan to value ratio. 

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