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Federal Gold Loan Interest Rate

Federal Bank Gold Loan 2021

Last Updated 25th Jun 2021

Federal Bank Gold Loan Interest rate starts at 8.50% with a loan tenure of 6 months to 12 months. Federal Bank jewel loans offer low interest with multiple repayment options including Bullet Repayment Scheme, Overdraft Scheme. Federal also offers agriculture gold loans with interest rates lower than the rates for regular customers Check Best Offers.

Federal Gold Loan Rate 8.50% onwards
Processing Fee Nil
Loan Tenure 6 months to 12 months
Loan Amount ₹ 1,000 to ₹ 75 Lakh
Prepayment Charges Nil
Gold Loan SchemeBullet Repayment Scheme, Overdraft Scheme
Apply for Gold Loan @ 9.50%* Get upto ₹ 500* Cashback

Federal Gold Loan

Federal gold loan can be availed by pledging your gold ornaments for meeting urgent personal expenses like children education, marriage and other financial emergencies in the family as well as for business purposes. The gold mortgaged acts as a security to the loan. Taking a loan from Federal Bank has the following benefits:

  • Overdraft facility available
  • Free insurance cover and secured credit card
  • Interest charged only on the amount used

Federal offers the lowest interest rate of 8.50% on loan against gold with effect from25 Mar, 2021. There has been no change in gold loan rates of Federal for a long time and continue to stand at 8.50%.

Federal Bank Gold Loan Details

  • Purpose of Gold loan: To meet personal and business expense requirements
  • Collateral: Loan against security of your gold jewellery
  • Type of Gold Accepted: Gold jewellery of up to 50 grams with a purity of 18 to 22 carat
  • Customer Segments: Federal offers jewel loans to all individuals above 18 years of age including salaried, self-employed professionals, businessmen, students, pensioners and housewives
  • Gold Loan Features
    • Federal Gold Loan Interest Rate starts from 8.50% to 11.95%
    • Federal Bank charges a processing fees of Nil
    • Loan Tenure of Gold Loan ranges from 6 months to 12 months
    • Lowest EMI per lakh on Gold Loan from Federal Bank is offered at the lowest gold loan interest rate and at the longest loan tenure .
    • Federal allows prepayment of jewel loans with Nil charges
  • Documents Requirement: Only basic KYC documents for address proof and income proof required. The bank doesn’t require you to submit your income proof or doesn’t check your CIBIL score for approving a gold loan.

Comparison of Federal Bank Gold Loan with other Banks

Federal Bank offers gold loans at affordable interest rates. However, you must analyze multiple banks and their offers before applying for a jewellery loan.

Particulars Federal Bank SBI HDFC Bank
Current Interest Rate 8.50% - 11.95% 7.30% - 7.50% 9.50% - 15.00%
Previous Lowest Interest Rate 11.75% 8.50% 8.50%
Lowest Rate Difference -3.25% -1.2% 1%
Processing Fees Nil 0.50% of the loan amount, minimum-₹ 500 1% of the loan amount
Loan Tenure 6 months to 12 months 3 months to 36 months 3 months to 24 months
Loan Amount ₹ 1,000 to ₹ 75 Lakh ₹ 20,000 to ₹ 50 Lakh ₹ 25,000 to ₹ 50 Lakh
Foreclosure Charges Nil Nil 1%
Repayment Options Y Y Y
Lowest EMI Per Lakh ₹ 8,722 per lakh ₹ 3,101 per lakh ₹ 4,591 per lakh

How can I get a Gold Loan from Federal ?

You can apply for a gold loan with Federal Bank directly through branch walk-in or by filling an online application form.

  • However, to get the best gold loan rate offers and comparison of all banks, you can apply online through MyLoanCare.
  • MyLoanCare will give you a detailed comparison of gold loan schemes of all banks, calculate your gold loan eligibility and connect you to the best bank for gold loan.
  • Customer representatives of the bank will get in touch with you instantly to fix up an appointment for branch visit.
  • Further, you will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting a loan is smooth, convenient and quick.

You can get a gold loan in a single branch visit during which Federal Bank will do an appraisal of your jewellery in terms of its purity and weight. In case the jewellery meets the bank standards, the bank will sanction your loan and give you an instant loan against the security of your gold jewellery.

Documents Required for Federal Bank Gold Loan

The documentation process of Federal Bank is smooth. You need to submit one proof of identity and one proof of address to get a Federal Bank gold loan. The list of identity and address proofs is as follows:

  • Identity proof: PAN Card, Driving License, Passport, Voter’s ID Card, Aadhar Card
  • Address proof: Voter’s ID Card, Aadhar Card, Rent Agreement, Utility Bills, Bank Statement

Federal Gold Loan Interest Rate Calculator

Lowest Gold Loan Interest Rate in Federal Bank is 8.50%. The factors that affect Federal Bank gold loan interest rate are loan amount, loan tenure and loan required as a percent of value of gold jewellery. Federal Bank’s existing account holders get a gold loan at best rates compared to other customers.

  • Loan Amount: The amount of gold loan you avail from Federal Bank depends on the weight of jewellery you can pledge with the bank. Federal Bank offers a loan per gram of gold which differs by the purity of gold and loan to value ratio offered. The Bank offers loan between between ₹ 1,000 and₹ 75 Lakh.The Federal Bank gold loan interest rate is lower for higher loan amounts.
  • Relationship with the Bank: Federal Bank offers special rates, offers and charges to the existing account holders of the bank. Those who have made their payments on time in the past can get the benefit of low gold loan interest rate from Federal Bank.
  • Loan tenure: Federal Bank offers gold loan for a tenure of 6 months to 12 months. The interest rate is higher for short tenure gold loans.
  • Loan to Value ratio: Maximum gold loan to value ratio on gold jewellery has been fixed at 75% by RBI. However, Federal Bank also offers loans at lower LTVs. Interest rate on loans with lower LTV will be lower compared to loans with higher LTV. Maximum LTV offered by Federal Bank is 75% calculated on net weight of gold in your jewellery.
  • Purpose of Loan: All banks, including Federal Bank also offer gold loan for agricultural purposes at low concessional rates, as the same is counted under priority sector lending targets of the bank. Federal's gold loan interest rate for agricultural loans is generally lower by 1-2% compared to its gold loan rate for regular customers.

Federal Bank Gold Loan Charges

In addition to interest rates, Federal Bank also carry some other charges while offering gold loan which include:

  • Processing fees – Federal Bank charges minimum processing fees Nil.To get the lowest fee, gold loan interest rates comparison, offers and cashback apply online through MyLoanCare.
  • Prepayment and foreclosure – Banks allow prepayment of gold loan and typically levy prepayment or foreclosure charges i.e. Nil.
  • Stamping charges - Stamping charges are charged for the transference of ownership of tangible assets. The charges are as per the respective State's Stamp Act.


Has Federal Bank reduced the interest rate on the gold loan?

Presently, Federal Bank offers gold loans at an interest rate starting at 8.50%. There has been no change in gold loan rates of Federal Bank for a long time and continue to stand at 8.50%.

How much gold loan can I avail from Federal Bank?

You can get upto ₹ 75 Lakh as a gold loan from Federal Bank. However, the maximum loan amount depends on the value of the gold you pledge. Federal Bank funds upto 75% of the gold value as loan.

How can I check my Federal Bank gold loan status?

You can check the status of Federal Bank gold loan by visiting the website and log in to the Federal Bank net banking. Once logged in, go to the track loan application in the loans section. In case you have applied for a gold loan through MyLoanCare website, log in to your MyLoanCare account, the status of your loan will be shown on the home page of your account. However, if you are concerned about the loan approval status, then in the case of a gold loan, the process of acceptance to disbursal is done within 24 hours.

Is gold loan Federal Bank available online? Is there a Federal Bank gold loan online payment facility?

Yes, you can apply for a gold loan online in Federal Bank to get a quick loan. Federal Bank offers a gold loan online payment facility. For online payments, you can use the netbanking facility. Apart you can also prompt automated payments of EMI from your regular savings or current account.

Are there any prepayment charges on Federal Bank gold loan?

Yes, you can prepay your jewel loan after paying prepayment charges. The applicable prepayment charges to foreclose loan from Federal Bank are Nil .Before enclosing your gold loan in advance, ensure that foreclosure of Federal Bank gold is beneficial in managing financial burden and does not hamper your debt to income ratio.

Does Federal Bank offer Agricultural Gold Loan?

No, Federal Bank does not offer any special gold loan scheme for agriculture. You will need to avail loan against gold against the bank’s regular gold loan scheme, even if you need it for agricultural purposes.

What is the procedure for a gold loan in Federal Bank ?

To apply for a gold loan in Federal Bank visit the nearest bank branch or log in to the official website. Also, you can apply with MyLoanCare to get the best offers. Before applying ensure you meet the Federal Bank gold loan eligibility criteria and keep your documents handy. Most importantly, be informed of the purity check of your gold.

Does Federal Bank offer additional on gold loan interest rate for women?

No, Federal Bank offer the same gold loan interest rate to all the borrowers, they do not offer lower interest to women borrowers. However, the interest rate is lower for people who take loans for agricultural purposes.

Can Federal Bank gold loan interest rate be negotiated?

Yes, Federal Bank gold loan rate can be negotiated. There are chances that banks will lower the interest rate if you already have an account with the bank or you have a stable source of income. Further, a larger loan amount can help you grab a gold loan at lower interest rates.

How long does it take to process Federal Bank Gold Loan?

The gold loan can be disbursed quickly within a few hours. It takes around 90 to 120 minutes to process loan. Further, it depends upon your eligibility, and the quality of the pledged gold.

What are the benefits for Federal Bank account holders while getting a Gold loan?

Federal Bank account can avail a gold loan for a maximum of 75% of the value of the gold at the lowest rate starting at 8.50%. The bank also provides gold loan without any income proof and CIBIL requirement.

What happens if Federal Bank Bank gold loan is not paid?

If you do not repay your Federal Bank Bank gold loan, you will have to pay a late payment penalty of 0.00%. Further, you may loose all you pledged gold, if you skip your Federal Bank gold loan payment entirely. Also, even when cibil score is not a criteria to avail gold loan, yet, prepaying Federal Bank gold loan on time, can boost your credit score and vice versa.

Will Federal Bank gold loan affect CIBIL score?

Yes, if you default on repaying your Federal Bank gold loan EMI, it will affect your CIBIL negatively and similarly, paying the dues on time will improve your CIBIL.

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Federal Gold Loan News - Jul 2021
  • 2021-01-06 : Federal Bank’s gross advances rise 6% YoY in Q3
    Federal Bank reported a 12% increase in total deposits which includes fixed and recurring deposits for the third quarter of the fiscal. Further the bank reported an increase of 6% rise in gross advances which includes home, personal, gold, car, two-wheeler and education loans along with business and mudra loans. CASA ratio stood at 34.48% at the end of December 31, 2020, from 33.38% as on September 30, 2020.
  • 2020-07-16 : Federal Bank Q1 net profit up 4.3%
    Federal Bank net profit backed by retail loans like home, personal, gold, car and two-wheeler along with business and mudra loans rose by 4.3% to Rs 400.77 crore in Q1 June 2020 over Q1 June 2019. Further, The Bank total deposits which include fixed and recurring deposits reached Rs 1,54,937.74 crore in Q1 June 2020, registering a 16.9% growth from Q1 June 2019.
  • 2020-07-06 : Federal Bank focuses on gold loans amid Covid-19
    Federal Bank is targeting the safer gold loans amid the Covid-19 and economic woes. The bank is hoping to grow faster than last year in this credit option as demand for other loan option seems to reduce and Businesses are opting for gold loans to tide over COVID-induced liquidity crunch.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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