Gold Loan Interest Rate - SBI, Muthoot, Manappuram, HDFC Bank, All Banks

Gold loans are usually taken for short term requirements. Generally, these are used for children education, marriage and other financial emergencies in the family. Usually rate of interest on jewel loan is relatively low. CIBIL score is not required for jewellery loans. However by Gold loan CIBIL score can be improved.

You can apply in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. The facility of tracking your loan is available with the bank. You can also compare Gold loan interest rates of all banks online at MyLoanCare and apply for jewelry loan.

These are generally taken for shorter time period. Generally the tenure is from 6 months to 36 months.

Apart from Interest rates, there are two types of loans charged by the banks:

• Gold loan processing fee: Most banks charges minimum processing fee from NIL to 1.01% on jewel loans. To get lowest fee, comparison on gold loan rates, check offers and for cash back apply online at myloancare.
• Gold loan prepayment and foreclosure: Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your jewel loan partially before time, it is called part prepayment. In case you decide to prepay the entire loan amount is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to some percentage of the outstanding amount. So, check carefully if the low rate of interest is coming with high prepayment or foreclosure charges. Note that some loans cannot be paid before time.

Yes, you need to have at least one functional bank account in your name. It is even better if you have an account with the same bank from which you would like to get a loan.

Yes, you can apply for jewellery loan jointly with a co-applicant (either be your spouse or your parents).

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

As these loans are secured loans so they have low rate of interest. The rate of interest varies with LTV and the loan tenure.

Banks or NBFCs give loan on jewellary to those borrowers about whom they are sure that he/she can repay the loan. You need to know few details if you don’t want your application to get rejected:

• Gold ornaments/coins should be real and minimum 18 Carat.
• The loan amount will depend upon the value of gold.

Borrower should be at least 18 years and not more than 70 years of age.

• Gold ornaments with karatage in the range of 18 to 24 karats.
• Both Hallmarked Jewellery and non Hallmarked Jewellery can be used for availing loan, but the processing fee will be different in both cases
• Specially minted gold coins sold by banks with a weight of upto 50 grams.

One cannot borrow against gold bars, gold funds (gold Exchange Traded Funds) and specially minted gold coins of banks weighing more than 50 grams. Ladies mangal sutra is not accepted as security.

Most banks and NBFC's fund up to 70 - 75% of the market value of gold jewellery (adjusted for relative purity of gold pledged). Average market price is calculated as the closing price of 22 carat gold for the preceding 30 days. Check your gold loan eligibility online at MyLoanCare

Three repayment options on gold loan are:

• Bullet Repayment: Simple interest is paid at monthly/ quarterly rests and principal is repaid on maturity date
• EMI Repayment: Equal installments comprising interest on a declining basis and a portion of principal amount are paid every month
• Overdraft Scheme: This is an overdraft facility against gold pledged with the bank. Customer pays interest to the bank on the amount of loan actually utilized and can deposit back and redraw the surplus whenever needed

Any person who is engaged in agriculture or allied activities is eligible for this loan. However one needs to submit evidence of farming activity (like proof of land records) to avail loan under this scheme

• Maximum loan amount: Upto Rs. 10 Lakh
• Upto 75% of the value of the ornaments
• Max loan duration: 3 years
• Rate of Interest: approx 7%-8% after taking into account government subsidy and benefits

Yes, banks charge penal fee for late payment. The percent of penal charge can be over and above the existing rate of interest or above the overdue amount. Most banks charge penal fee up to 2% p.a. over and above applicable rate of interest. Some banks also charge up to 24% p.a. as penal interest over and above applicable rate of interest. So be careful while selecting particular scheme and do check the penal fee and other charges

Generally banks and NBFC's offer quick disbursement of jewel loan within an hour of walk-in at specialized loan branches. MyLoanCare can help you connect with your nearest bank branch. Play safe with your valuables and visit the branch only after your appointment is confirmed by us.

The documents required for availing gold loan are:-

• Two passport size photograph
• Identity proof (PAN card/ passport/ Aadhaar card/ voter id card)
• Address proof (Electricity bill/ telephone bill/ bank statement)

All existing customers get access to customer netbanking portal by login their user id and password.