Gold Loan Interest Rate

GET GOLD LOAN
AT LOWEST INTEREST RATE

⍟  Highest Rate Per Gram
⍟  Lowest Interest Rate of 0.79% p.m.

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    Gold Loan Interest Rate

    Gold Loan Interest Rate Sep 19 2021 

    Lowest Gold Loan Interest Rate Gold Loan Interest Rate is 9.90%
    Processing Fee Up to 1% of the loan amount
    Loan Tenure 1 day to 36 Months
    Gold Loan per gram ₹ 3,329 to ₹ 3,489 depending upon the purity of the gold
    Repayment Options EMI, Bullet Repayment Scheme and Overdraft

    Gold Loan Interest Rate from Major Banks

    Bank
    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
      • Check best Offers with Gold Loan interest rate starting @ 9.90%
      • The gold loan can be availed without any income proof and no CIBIL score.
      • Apply for a gold loan online and get disbursal in 45 minutes.
      • RBI has decided to increase the Gold loan to value ratio from 75% to 90% till 31st March 2021, which will directly impact Gold Loan per gram.
      • With Dialabank, Compare and check eligibility online to get the best offers on the Gold Loan per gram interest rate.

    gold loan interest rateThe 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 products 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 interest 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 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 the Gold Loan interest rate, the best bank to avail of 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 of this service. Next, the customer can also avail of this service from Yes Bank as it second on the list of banks providing the 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*

     

    Comparison of Gold Loan Interest Rates 

    Gold Loan Providing Banks

    Interest Rates 

    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

    Rs20,000 to Rs20 lakh

    Upto 36 months

    HDFC Gold Loan

    9.90% to 17.90%

    Rs25,000 onwards 

    3 months to 24 months

    ICICI Gold Loan

    10% p.a. To 19.76% p.a.

    Rs10,000 to Rs10 crore

    3 months to 12 months

    Axis Bank Gold Loan

    15% p.a. onwards

    Rs25,001 to Rs20 lakh

    3 months to 36 months

    Canara Bank Gold Loan

    7.65% p.a.

    Rs10,000 to Rs10 lakh

    Upto 12 months

    Bank of Baroda Gold Loan

    10.35% p.a.

    Upto Rs25 lakh

    Upto 12 months

    Karnataka Bank Gold Loan

    Contact bank for updates 

    Upto Rs5 lakh per account

    Upto 12 months 

    PNB Gold Loan

    7.8% p.a. onwards

    Rs25,000 to Rs10 lakh

    As per the terms and conditions 

    India Infoline (IIFL)

    12% p.a. onwards

    Rs3,000 onwards

    Upto 11 months 

    Kotak Mahindra Gold Loan

    10.5% to 17% p.a.

    Rs25,000 to Rs25 lakh

    12 months onwards

    Federal Bank Gold Loan

    8.50% p.a onwards

    Rs 1,000 onwards

    It depends on the lenders

    Central Bank of India Gold Loan

    9.05% p.a onwards

    Upto Rs 20 lakhs

    12 months 

    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 for the loan amount. Moreover, anyone with a 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 in their name can apply for a loan.

    Things to know before applying for Gold Loan

    If you are applying for a gold loan for the first time, then you should be aware of the following things:

    Maximum Loan Amount – Banks extend a percentage of the value of gold as the loan amount. Currently, you can get up to 90% of the value of gold in the gold jewelry as a loan amount. However, the bank has the final say on how much loan amount it extends to its applicants. So if the bank appraises your gold articles at Rs. 10,000, then you can get up to Rs. 9,000 as a loan amount.

    Safety of Your Gold Item – The banks take over the responsibility of safeguarding your gold articles once you submit them with them. Some lenders even insure your gold articles. If you want, you may enquire about the safety measures taken by the bank to safeguard your gold articles.

    Loan Payments Default – The bank reserves the right to auction off your gold articles in the event you fail to pay off the loan amount. Hence, you must pay off the amount in a timely manner.

    How to apply for Gold Loan at DialaBank?

    Dial-a-bank is a one-stop shop for all of your financial needs. You can apply for a Gold Loan through Dial-a-Bank to make the process quick and easy. After completing the online application, the Dial-a-Bank team will handle all the further procedures. You must visit Dial-a-Bank official website for more details and apply for a loan by fooling a few simple steps:

    • To begin, go to the Dial-a-bank website and click on Gold Loan from the Loans menu.
    • Fill out all of the necessary information to apply for a Gold Loan. Provide information such as your full name, loan amount, location, email address, and relevant information.
    • Choose the bank from which you intend to obtain the loan.
    • Once the application has been completed, and the process has begun, the representative will notify you. 

    Current Gold Loan Interest Rates as on Sep 19 2021

    Public Sector Banks Providing Gold Loan

    Public Sector Banks Interest Rates Repayment Schemes
    SBI 7.50% Bullet Repayment
    Canara Bank 7.65% – 7.75% Bullet Repayment
    Andhra Bank 10.70% Bullet Repayment
    PNB 8.75% EMI Scheme / Bullet Repayment / Overdraft

    Private Banks Providing Gold Loan

    Private Sector Banks Interest Rates Repayment Schemes
    HDFC Bank 9.50% – 17.10% Bullet Repayment / Overdraft
    Yes Bank 9.99% – 14.50% EMI Scheme / Overdraft
    ICICI Bank 10.00% – 19.76% EMI Scheme
    Federal Bank 8.50% – 11.95% Bullet Repayment / Overdraft
    Axis Bank 13.00% EMI Scheme / Bullet Repayment
    IndusInd Bank 10.00% – 16.00% Bullet Repayment

    NBFCs Providing Gold Loan

    Gold Loan NBFCs Interest Rates Repayment Schemes
    Muthoot 11.99% – 11.99% EMI Scheme / Bullet Repayment
    Manappuram 12.00% – 29.00% EMI Scheme / Bullet Repayment

    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, the 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 are given a rebate on the rate of interest.
    • LTV Ratio: The banks charge more interest from the people with a higher LTV ratio.

    Gold Loan Rates Comparison with Tenure Period 

    Bank Name  

    Interest Rates of Gold Loan

    Processing Fee

    Maximum tenure period

    SBI Gold Loan 

    7.50%

    0.50% of the loan amount, minimum Rs500

    36 months

    Muthoot Gold Loan

    11.99%

    0.25% to 1% of the loan amount

    36 months

    Manappuram Gold Loan 

    9.90%

    Rs 10 (pay at the time of settlement)

    3 months

    HDFC Bank Gold Loan

    9.50%

    1% of the loan amount

    24 months

    Yes, Bank Gold Loan

    9.99%

    Upto Rs799

    36 months

    ICICI Bank Gold Loan

    10.00%

    1% of the loan amount

    12 months

    Federal Bank

    8.50%

    Nil

    12 months

    Canara Bank

    7.65%

    0.5 of the loan amount, Min Rs1,000 and max Rs 5,000

    12 months

    Andhra Bank

    10.70%

    Nil processing fees

    12 months

    Axis Bank

    12.50%

    1% plus GST

    24 months

    IndusInd Bank

    10.50%

    Upto 1% of the loan amount, minimum Rs 750

    24 months

    Punjab National Bank

    8.75%

    0.70% of loan amount+ taxes

    12 months

    Fincare Small Finance Bank

    12.99%

    Upto 0.25%

    12 months

    Factors Affecting the Interest Rates of Gold Loan

    The Market value of Gold

    If the market price of gold is high, the value of the gold ornaments or coins you are pledging would be high as well. In such situations, lenders can give you a lower interest rate because the risk is low, and if you are unable to make the equated monthly installments (EMIs), the lender will easily recover the outstanding sum by selling or auctioning the gold ornaments.

    Purity & Weight 

    The quantity and quality of the gold are the main parameters that affect the maximum gold loan amount given to you. The purity and net weight of the gold articles are checked by a bank-nominated appraiser. Some banks do not accept gold ornaments that are below 18 carats.

    Inflation

    When the rate of inflation is high, the value of money drops in value, and people are more likely to accumulate gold. Inflationary conditions, particularly when they last for a long time, act as a hedge against gold. As a result, the price of gold rises, and if you need a gold loan, you will be able to get lower interest rates from lenders.

    Relationship with the bank

    Most lenders only give gold loans to their current clients, but in some situations, people who have never had a relationship with the bank can get one. Existing bank/lending institution customers, on the other hand, are usually in a stronger position to negotiate a lower interest rate.

    How to effectively repay your Gold Loan online?

    Nowadays, All lenders offer online repayment options. The repayment of Gold Loan online is a very easy and convenient process. You are given a login ID and password at the time of the online application. You have to use this same ID for payment of your debts by following online repayment procedures. There are several modes of payments such as cash, EMI, cheque and DD. 

    Are there any chances of your Gold Loan getting rejected?

    When the verification of the gold submitted by you at the bank is completed, then only the process of disbursement proceeds further. Suppose it is discovered that the gold item is fake, stolen, or missing a bill, or that the documents are not original, the chances of rejection increase. The loan approvals depend on the purity of gold and KYC Documents of the borrower, which leaves fewer chances of getting rejected. 

    How can a Gold Loan boost your CIBIL Score?

    If you are a defaulter, a loan against gold may be able to help you improve your credit score. This is possible because a gold loan is a secured loan that helps to strengthen your credit score when compared to an unsecured personal loan. Gold Loan can be obtained without providing proof of income. Only your KYC documents and the gold valuables have to submit for the verification process in the bank. As a result, you can take out a small loan and repay it on a regular basis to boost your credit score.

    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 the loan. Otherwise, it is 1% of the amount of the 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 gold jewelry. 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 of 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 the 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 of 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, the 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 the 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, the 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%

    How to get the lowest gold loan rates?

    • Special offers – Always check current offers and interest rates offered by various banks as banks run special schemes on a periodic basis.
    • Compare bank offers for various loan amounts – Typically, banks offer low-interest rates at higher loan amounts and vice versa. Further, the interest rate offered by NBFCs is typically higher as they give small loan amounts with flexible and quick service.
    • Type of loan taken: Generally, loans against gold taken for agricultural purposes are offered at lower interest rates. Similarly, if you are planning to avail of an overdraft facility against gold, you may be required to pay a high interest rate.
    • Loan to Value Ratio: Higher the loan to value ratio, the higher is the interest rate charged. As per the latest RBI circular, in a bid to provide relief to gold loan borrowers, banks can lend up to 90% of the gold as a loan.
    • Existing bank account holder: At times, gold loans are offered at an affordable interest rate to the existing customers of the bank. Thereby, if you have an existing savings account, an FD or a loan account.
    • Flat rate Method: In keeping with the flat rate approach, the gold loan interest rate is calculated at the original loan amount for the duration of the loan tenure. Hence the principal amount remains the same. As an example, even when you borrow a gold loan for two years of Rs 3 lakhs, you’ll continue paying the interest on the whole of Rs. Three lakhs amount during the length of two years.

    • Reducing Rate Method:  The reducing balance approach calculates the interest rate on the Pending gold loan amount. In this method of interest calculation, the principal amount paid at the time of paying EMIs is not charged for interest calculation; hence the pending balance reduces with time and the interest is charged only on the pending principal amount. So basically, the interest amount keeps on decreasing with time.

    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, the more the purity of gold, the 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:

    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 the EMI option, the applicant has to pay a fixedgold loan interest rate 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 of a loan under this scheme.
      • This scheme is categorized under priority sector lending, i.e. for agriculture, and is eligible for an interest subvention scheme from the government, which eventually reduces the interest for the borrower.
      • The loan tenure under this scheme is of 3 years.
      • Overdraft facility is also available on such loans.
      • The 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, homemakers, 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 a 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 of a gold loan. You can easily know the EMI structure in 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

    Gold Loan Processing Fees and Charges

    Name of the Bank Processing fee Valuation charges Fore-closure charges Penal interest
    Axis Bank 1% of the loan amount 500 Nil 2% on the overdue amount
    Kotak Mahindra Bank 2% of the loan amount Minimum 250 and Maximum 2,000 Nil 3% of the overdue amount
    ICICI Bank 1% of the loan amount Contact bank for the charges 1% of the principal balance if closed before 11 months for the 12 months tenure slab.
    1% of the principal balance if closed before 5 months for the 6 months tenure slab
    6% of the overdue amount
    Syndicate Bank 1% of the loan amount Minimum 30 and maximum 300 Nil 2% of the overdue amount
    HDFC Bank 1.5% of the loan amount 250 for loan up to 1.50 Lakhs and 500 for loan above 1.50 Lakhs 2% of the outstanding loan amount if closed before 3 months and 1% of the outstanding loan amount if closed within 6 months 2% over and above the regular interest on the overdue amount

    What are the 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 a Weak CIBIL Score can also apply for a Gold Loan.
    • 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 of this service.
    • No Income bounds: There are no restrictions on the salary or income of the applicant; hence, anyone with any income range can avail of 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 of a gold loan which makes it a hassle-free service.
    • Eligibility: Anyone who is above 18 and up to 75 can avail of the Gold Loan if required.
    • Loan Purpose: No restrictions have been imposed on the end-use of the loan. It can be used as a Personal Loan also.
    • Quantum of the loan: Quantum of the loan is dependent upon the weight of the gold pledged. You can get as low as Rs.2,000 and as high as 1 Cr. as a loan amount. However, the amount of loan is decided based on the market value of the gold, your repayment capacity and the policies that the lender has set.
    • Different options to repay the loan: There are various repayment options for paying back the loan in equated monthly instalments (EMI) or bullet Repayment option. You can repay the loan amount by way of Net Banking, Cash or Cheques.
    • Processing charges: The processing fees range from 0.50% to 2% of the sanctioned loan amount exclusive of GST. (GST will be added to the processing charge)
    • Pre-closure charges: The foreclosure charges for closing the Gold Loan before time, i.e. before the maturity period, may typically differ between 1% to 3% of the outstanding amount (Principal amount) exclusive of GST. (GST will be added to the amount)

    How is a Gold Loan is better than a Personal Loan?

    There are a lot of advantages of Gold Loan, which make it better than any personal loan. Following are the benefits of Gold Loan:

    • A gold loan can help you boost your credit score, while a personal loan can not.
    • Purchasing Gold is the right asset allocation method among Indians. A mortgage against gold is the best way to use its most capability as there may be an excessive LTV ratio of up to 80%.
    • It is disbursed within 60 minutes, whereas for the personal loan, it takes 2-5 working days in general to disburse.
    • The interest rate on a Gold Loan starts from 7% per annum compared to a personal loan beginning with 11% per annum.
    • There’s no income proof required to get a loan in opposition to gold, unlike a private loan, where it’s far the most important record.
    • People with a Weak CIBIL Score can also apply for a Gold Loan. While in the personal loan, there Is no CIBIL score counted.
    • You get comfortable and flexible loan renewable options to repay the gold loan.
    • The tenure for a personal loan starts at 12 months, while for the gold loan, it starts with 3 months. 
    • It helps to boost your credit score.

    Loan Amount Per Gram of Gold

    Numerous lenders offer you loans on pledging gold at appealing interest rates. The loan amount varies primarily based on the weight of gold that you pledge. The loan amount is something that varies across banks.

    Why Apply for a Gold Loan on DialaBank?

    You may make a comparative analysis of the rates given by different banks online on Dialabank since all of the information is compiled on a single page and is accessible to you. Collecting the news on your own would be a time-consuming and exhausting procedure.

    You may do an in-depth analysis of the offers made by several financial institutions. After you’ve determined which institution you want to borrow from, you can apply for the loan using Dialabank.

    How to Apply?

    The applicant can apply for a Gold Loan at the comfort of their home. Thus, just visit the 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

    Gold Loan – Eligibility & Documentation

    To apply for a gold loan, Claimants are required to get their Owned Gold, gold ornaments or coins are checked by checking their purity and net weight. Applicants must be above 18 years of age and a maximum of up to 70 years.

    Documents Required

    Banks usually ask for the documents specified below. If anything else is needed, the bank will ask to share at the time of application.

    • Properly filled form with 2 Passport size photographs
    • KYC Documents of the applicant: Aadhar card, Driving License, Passport, PAN card, Voter’s ID card, Utility Bills.
    • Bank Statement of Last 12 months
    • Any other document required if asked by the lender

    Customer care number to know more about Gold Loan Interest Rates

    You can apply for Gold Loan by following the below-mentioned points:

    • Visit Dialabank
    • Fill in your details in the form.
    • Our team will then contact you.
    • Submit your documents and get instant approval.

    Customers can contact the Gold Loan customer care via any of the following means:

    • By Phone: You can call on 9878981144 
    • Callback Request: You can also request a call back by visiting the bank’s website.
    • Online Chatbot: You can also get your queries answered by the iPal chatbot online.

    FAQ’s About Gold Loan Interest Rates

    ✅ Am I eligible to avail myself of a gold loan?

    Yes, you are eligible to apply for a gold loan provided you fulfill 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 of 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 a 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, 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 the 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. This 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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