With a gold loan, you can pledge your gold ornaments or jewellery to any bank or lender for security.According to ET, the process for obtaining a gold loan is swift, requiring minimal documentation, and funds are disbursed promptly. You can pledge gold ornaments, including coins sold by banks, to secure a gold loan with minimal paperwork and a fair interest rate.
Latest Gold Loan Interest rates
Gold loan interest rates typically vary from 8.25% to 18%, and repayment periods can range from 6 to 36 months, depending on the lender.
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SBI gold loan interest rates
| Gold Loan EMI based | 8.65% | 1.25% | 9.90% | |
| 12 Months Bullet Repayment Gold Loan | 8.65% | 0.50% | 9.15% | |
| 3 Months Bullet Repayment Gold Loan | 8.20% | 0.55% | 8.75% | |
| 6 Months Bullet Repayment Gold Loan | 8.55% | 0.35% | 8.90% | |
PNB gold loan interest rates
| Sr | Name Of Scheme | Revised Rate Of Interest |
| 1 | Advance against Gold Jewellery/Gold Ornaments | RLLR+BSP (Presently 9.25%) |
| (Demand Loan) | ||
| 2 | Advance against Sovereign Gold Bonds (Demand Loan) |
Bank of Baroda gold loan interest rates
For Retail Loans, the applicable BRLLR is 9.15% effective from 14.02.2023. This consists of the Current RBI Repo Rate at 6.50% plus a Markup/Base Spread of 2.65%.
| Product | Conditions | Repo Rate + Spread | Effective Rate of Interest | |
| Retail Gold Loan | LA180 (demand loan) | BRLLR+SP | 9.40% | |
| LA241 (EMI) | BRLLR+SP | 9.40% | ||
| OD043 (overdraft) | BRLLR+SP | 9.40% | ||
HDFC Bank gold loan interest rates
| Rates offered to customer during the period of Jan’24- Mar’24* | |||
| Product Group | Bank IRR | ||
| Min | Max | Avg | |
| GOLD LOAN | 9.00% | 17.65% | 11.98% |
| Annual Percentage Rate offered to customer during the period of Jan’24- Mar’24* | |||
| Product Group | Bank APR | ||
| Min | Max | Avg | |
| GOLD LOAN | 9.00% | 17.67% | 11.98% |
ICICI Bank gold loan interest rates
| Minimum | Maximum | Mean |
| 9% | 18.00% | 14.65% |
Axis Bank gold loan interest rates
| Fixed rate loan | 1 Y- MCLR | spread over 1Y mclr | interest rate |
| Gold loan | 9.30% | 7.70% | 17% |
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Eligibility
Indian residents aged between 18 and 75 can apply for a Gold Loan. These loans are granted based on your gold or jewellery assets.
Repayment options
Three repayment schemes are available:1. Bullet repayment: Pay back your loan with one final payment, including both the principal and interest, at the end of the loan term.
2. Monthly EMI repayment: Repay your loan through monthly instalments.3. Monthly interest repayment: Pay the interest monthly, and the principal amount at the end of the loan term.
Appraisal charges
According to ET, for loans up to Rs 5.00 lakhs, Union Bank of India charges 0.40% of the loan amount, with a minimum of Rs 100/- and a maximum of Rs 500/- per case, plus GST. For loans between Rs 5.00 lakhs and Rs 10.00 lakhs, the charge is Rs 600/- per case plus GST. For loans above Rs 10.00 lakhs, the charge is Rs 750/- per case plus GST.