Top gold loan rates and comparison, BFSI News, ET BFSI
[ad_1]
Read More/Less
When it comes to borrowing from a financial institution, other than availing a personal loan, one can also opt for a gold loan. If you are planning on taking a gold loan (or a loan against gold), here is what you need to know.
What is a gold loan?
A gold loan is a loan against gold. It is a secured loan where gold articles such as gold jewellery, ornaments etc. are taken as collateral by the lending bank/NBFC. The loan is given to the borrower against this gold as collateral.
Where to avail gold loan?
Apart from banks such as SBI, ICICI Bank, HDFC Bank etc., non-banking finance companies (NBFCs) also offer gold loans to individuals. NBFCs which offer gold loans include Muthoot Finance, Manappuram Finance etc.
Minimum and maximum gold loan amount
The amount of loan that an individual can get against a gold article will vary from lender to lender. For instance, ICICI Bank offers gold loans between Rs 10,000 and Rs 1 crore. Whereas the State Bank of India (SBI) offers gold loans between Rs 20,000 and Rs 20 lakh. While Muthoot Finance offers gold loans starting from a minimum amount of Rs 1,500 with no maximum limit.
Tenure of gold loan
The tenure of the gold loan will also vary from lender to lender. For instance, HDFC Bank offers gold loans with tenures between three months and 24 months. Maximum period of repayment of an SBI gold loan is 36 months. Muthoot Finance offers different types of gold loan schemes that come with different tenures.
Interest rate on gold loan charged by bank and NBFC
| Bank / NBFC | Gold Loan Interest Rate | Processing Fee |
| Bank of Maharashtra | 7.00% | Rs.500 to Rs.2000 + GST. |
| SBI | 7.00% to 7.50% | 0.50% + GST |
| Punjab & Sind Bank | 7.00% to 7.50% | Rs.500 to 10000 max |
| Union Bank | 7.00% to 9.90% | |
| Canara Bank | 7.35% | Rs.500 to Rs.5000 |
| Indian Bank | 7.50% to 8% | 0.56% of the limit sanctioned |
| South Indian Bank | 8.00% – 21.87% | |
| Karnataka Bank | 8.49% to 8.79% | |
| Uco Bank | 8.50% | Rs.250 to 5000 max |
| Federal Bank | 8.50% onwards | |
| HDFC Bank | 8.50% to 15.97% | 1% of disbursal amount |
| Punjab National Bank | 8.75% to 9% | 0.75% of loan amount |
| Bank of Baroda | 9.00% to 9.15% | Applicable charges + GST |
| ICICI Bank | 9.00% to 19.76% | 1% of loan amount |
| Central Bank of India | 9.05% | 0.75% of loan amount |
| City Union Bank | 9.50% | Nil |
| Karur Vysya Bank | 9.50% to 10.00% | 0.50% (inclusive of Appraisal charges) |
| Dhanlaxmi Bank | 9.65% (Fixed) | 1% + GST |
| J & K Bank | 10.00% | Rs 500 + GST |
| Indusind Bank | 10.00% to 16.50% | 1% of loan amount |
| Kotak Mahindra Bank | 10.00% to 17.00% | Upto 2% + GST |
| Bandhan Bank | 10.99% to 18.00% | 1% + GST |
| Axis Bank | 13.50% to 14.50% | 0.5% + GST |
| Muthoot Finance | 22% p.a. with 4% rebate if 100% interest is paid monthly | |
| AU Small Finance Bank | Up to 24% | 1% or Rs. 500 whichever is heigher |
All data sourced from Economic Times Intelligence Group (ETIG)
Interest rate on gold loan sorted based on increasing order of maximum interest rate charged by bank/NBFC
Interest rate data as on December 4, 2021What are the documents required?
To avail a gold loan, the bank or NBFC will ask you to provide various documents. Documents normally required include your proof of identity such as PAN, Aadhaar etc. and proof of address like Aadhaar, passport, Voter-ID card etc, and your photograph. Any additional documents required would vary from lender to lender.
What are the charges?
For loans like home, auto and personal loans, the borrower is usually required to pay processing charges/fees to avail the loan. While taking a gold loan, apart from processing fees, an applicant may be asked to pay for valuation of gold which will be used as collateral by the lending institution. For instance, HDFC Bank charges Rs 250 as valuation fees for loan up to Rs 1.5 lakh and Rs 500 for loan over Rs 1.5 lakh.
Apart from processing fees and valuation charges, a bank can also charge documentation and foreclosure charges.
Therefore, you should check with the bank and/or NBFC for all the charges that will be levied before availing the loan.
Disclaimer: The data/information given above is subject to change, hence before taking any decision based on it, please check terms and conditions with the bank/institution concerned.
For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 – 66353963
[ad_2]