Cheapest Gold Loan Interest Rates And Lowest EMI On Gold Loans 2021 From Top Banks
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Gold Loan Eligibility and EMI
Gold loan eligibility is determined by the loan per gramme of gold or the loan amount, which is determined by the value of gold pledged (based on gold price), purity of gold, and the LTV applied by banks. The price of gold is calculated using the average price of 22 carat gold over the previous 30 days and the loan-to-value provided by your bank. Your Gold Loan EMI is determined by your loan amount eligibility, interest rate provided, and loan tenure.
By subtracting the principal amount from the total amount due, you can calculate the gold loan interest. An EMI calculator can be used to measure the total amount you’ll pay at the end of the term.
Gold Loan- Bullet Repayment Scheme
You must repay the entire principal and interest balance at the end of the loan period if you use the Bullet Repayment form. Yes, you read that correctly. During the loan term, there is no need to pay principal or interest! After your loan is completed, simply pay the entire amount.
Allows you to select a flexible repayment schedule in which you pay interest on the loan as monthly EMIs and the principal payment in one lump sum at the end of the loan term. Some banks often allow you to pay a portion of your principal as part of your monthly payments. Suitable for gold loans with a term of less than six months. You won’t have to worry about repaying the principal every month.
Lowest Gold Loan Interest Rates and EMI from Top Banks
Lowest Gold Loan Interest Rates and EMI from Top Banks
| Bank | Interest Rate | Lowest EMI Per Lakh | Max Tenure | Eligible Loan Amount |
| SBI Gold Loan | 7.50% | Rs. 3,111 | 36 months | Rs. 50 Lakh |
| HDFC Bank Gold Loan | 9.50% | Rs. 4,591 | 24 months | Rs. 50 Lakh |
| ICICI BANK | 9.00% | Rs. 8,745 | 12 months | Rs. 10 Lakh |
| Federal Bank | 8.50% | Rs. 8,722 | 12 months | Rs. 75 Lakh |
| PNB | 8.75% | Rs. 8,734 | 12 months | Rs. 10 Lakh |
| Canara Bank | 7.65% | Rs. 8,683 | 12 months | Rs. 20 Lakh |
Gold Loan: Things to know
State Bank of India, Bandhan Bank, and Muthoot Finance all have a three-year maximum term. A loan from Kotak Mahindra Bank will last up to four years. Some lenders charge a percentage of the loan amount as a processing fee. For example, Punjab National Bank charges 0.75 percent, or Rs 750, on a Rs 1 lakh loan.
The interest rate charged by the bank is proportional to the loan amount. As a result, if you need a large loan, be prepared to pay a higher interest rate.
The maximum gold loan sum is determined by the quantity and nature of the gold papers. A bank-appointed appraiser inspects the gold articles for consistency and quantity.
The MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR influences the interest rate offered to applicants (Repo Rate Linked Lending Rate). Banks that issue gold loans against the RRLLR are much quicker in notifying applicants of RBI Repo Rate cuts.
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