Interest Rate
1.25% 0.79% p.m.

Indusind Bank Gold Loan @ 1%* p.m.

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Unlock the Real Value of your Gold

Rates as low as 9.50%
Get Money in 30 Mins
Loan Amount Up to 1 Crore
Loan Tenure Up to 48 Months
Unbiased Experts Advice

Gold is one of the most precious and celebrated metals in India. Buying and gifting gold is an old tradition of our culture. However, the service of Loan Against Gold has changed the scenario of how people use this metal. Nowadays, people buy Gold to overcome financial troubles in life.

What is Gold Loan?

gold loanGold Loan is the fastest growing financial service in the banking industry. Majority of people have gold ornaments which are just lying in the bank lockers or at home. Thus, Loan Against Gold provides an opportunity for the people to unleash the worth of this valuable yellow metal by availing a gold loan against them.

How does Gold Loan work?

Our country has about 10% of the total gold stock in the whole world. Thus, the majority of people own gold ornaments in India. Loan Against Gold is a service that helps people to get cash against the gold they own. The mechanism of this service is quite simple and clear.

  1. The applicant just has to pledge gold jewelry to the lender in return for the loan amount. After you take your jewelry to the bank, the in-house jewellers access your gold jewelry in terms of purity and weight.
  2. Then, according to the value of gold, the lenders give the loan seekers cash equivalent to around 70%-75% of the value of their gold.
  3. Now the lender has the possession of your gold ornaments until the full repayment of the loan amount.
  4. Finally, when you repay the whole amount of loan, the bank returns the gold in the same shape to the customer.

This is the entire process of the service of Loan Against Gold. Thus, the Documents required are quite minimal as the bank is majorly concerned about the quality and quantity of Gold.

What is Gold Loan Interest Rate?

Gold Loan is a service that provides its customers with cash at the best rate of interest. In contrast to other services like Personal Loan and Home Loan, Loan Against Gold Interest Rate is quite less and reasonable. On average it starts at 10.75% per annum and can go up to 24% per annum. Different Banks and NBFC’s provides different interest rate to the customers.

*Read more about Gold Loan Interest Rate and compare them. 

Gold Loan Interest Rate of Major Banks

Bank Gold Loan Rate
HDFC Bank 10.75%
Yes Bank  10.85%
Axis Bank 10.90%
SBI Gold Loan 11.50%
ICICI Bank 11.75%
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%
IDBI Bank 12.25%
PNB Gold Loan 12.25%

FAQ’s for Gold Loan 

Ques1: What is Gold Loan Interest Rate Formula?

Loan Against Gold Interest Rate varies in different banks. Mainly, it depends upon the amount of loan and LTV ratio of the gold. To check interest rate, Click Here.

Ques2: How to pay Gold Loan Online?

You have an option to pay a gold loan online through online repayment applications.

Read More: Best Methods of Repaying Gold Loan

Ques3: How does Gold Loan Work?

Loan Against Gold is very simple to understand as well as easy to avail. The Bank provides you with funds against your gold Jewelry. The amount depends upon the gold weight.

Ques4: Gold Loan is secured or not?

Yes, Loan Against Gold comes under the category of secured loan. Because the applicant has to put their gold jewelry into the bank’s locker as security or as collateral.

Ques5. When you don’t repay a Gold Loan amount?

If the applicant is unable to return the gold loan amount at fixed tenure, the bank is liable to sell his gold Jewelry.

Ques6. What is the best online platform to avail gold loan?

Dialabank is the best platform to get a loan. Dialabank provides you hassle-free process as well as the lowest interest rate in the market as compared to others.

* For any assistance regarding Gold Loan, call us on 95920-46860, our trained Relationship Managers will solve all your queries.

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