Top 15 Banks Providing The Lowest Interest Rates On Gold Loans

Minimum and maximum loan amount and tenure

The loan amount a person can get from lender to lender against a gold product can differ. For example, the State Bank of India (SBI) is providing gold loans ranging from Rs 20,000 to Rs 20 lakh. The gold loan’s tenure will also differ throughout lending institutions The overall maturity period of an SBI gold loan, for example, is 36 months.

Documents required

The bank or NBFC will ask you to furnish different documents to take advantage of a gold loan. Your proof of identity, proof of address and your passport size photograph are usually necessary documents. Any relevant additional documents may differ across financial institutions.

Gold loan charges

The borrower is typically required to pay transaction/processing fees to take the advantage of the loan. While availing a gold loan, in addition to the processing costs, the borrower may be required to pay for the valuation of the gold that the lending entity will use as security/collateral. A bank can also incur documentation and foreclosure costs, apart from processing fees and appraisal charges. You must therefore confirm with the bank and/or NBFC for all the fees that will be charged before the loan is used.

Gold loan rates

The table below includes a list of the 15 banks presently providing the lowest interest rates on gold loans. Remember, for each of these banks, we’ve just listed the lowest reported interest rates. Depending on your loan amount, loan period or any other terms and conditions imposed by your lender, the interest rate available to you may be different.