Federal Gold Loan Interest Rate

Last Updated 19th Jun 2018

Federal Bank Gold Loan Interest Rates Jun 2018

Federal Bank offers one of lowest gold loan rate of 11.75% , both for its existing bank customers as well as new borrowers. Federal jewel loan interest rate varies by amount of loan, purity of gold and loan to value ratio. Check Best Offers.

Gold Loan in Federal
Gold Loan Loan Details
Federal Gold Loan Rate 11.75% onwards
Processing Fee Nil
Loan Tenure 6 months to 12 months
Loan Amount Rs. 1,000 to Rs. 75 Lakh
Prepayment Charges Nil
Gold Loan SchemeBullet Repayment Scheme, Overdraft Scheme
Apply Gold Loan @ 10.49%*
Rs.
Rs.
+91

Federal Gold Loan

Gold Loans are loans availed by pledging your gold ornaments with a bank. Federal gold loan can be taken 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 has the following benefits:

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

Federal Bank Gold Loan Details

If you are planning to take a Loan against Gold from Federal Bank, you need to know the following details of its gold loan schemes:

  • Purpose of Gold loan: To meet personal and business expense requirements
  • Collateral: Loan against security of your gold jewelry
  • Type of Gold Accepted: Gold jewelry or gold coins 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 Bank Gold Loan Interest Rate starts from 11.75% to 13.50%
    • 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 Rs. 8,873 offered at the lowest interest rate of 11.75% at the longest loan tenure of 12 months
    • 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.
  • Popular Gold Loan Schemes of Federal
    • Bullet Repayment Scheme
    • Overdraft Scheme

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 bank will get in touch with you instantly to fix up an appointment for branch visit. You will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting loan is smooth, convenient and quick. You can get 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 jewelry meets the bank standards, the bank will sanction your loan and give you an instant loan against the security of your gold jewelry.

Federal Gold Loan Interest Rate Calculator

Lowest Gold Loan Interest Rate in Federal Bank is 11.75%.The factors that are used by Federal Bank to calculate interest on gold loan are loan amount, loan tenure and loan required as a percent of value of gold jewelry. Federal Bank’s existing account holders get gold loan at best rates compared to other customers.

  • Loan Amount: The amount of gold loan you can avail depends on the weight of jewelry you can pledge with the bank. Generally, banks offer a jewel loan per gram of gold which differs by the purity of gold and loan to value ratio offered. Banks offer lower interest rates for higher amount. Federal Bank offers loan between Rs. 1,000 and Rs. 75 Lakh amount.
  • 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: Many banks charge higher rate of interest for gold loans of lower tenure and lower interest rate for gold loans of higher tenure. Federal Bank offers gold loan with a tenure of 6 months to 12 months.
  • Loan to Value ratio: Maximum gold loan to value of gold jewelery ratio on gold jewelry 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 jewelry.
  • 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.
Other Charges of Gold Loan Federal Bank

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 lowest fee, gold loan interest rates comparison, offers and cashback apply online through MyLoanCare.
  • Prepayment and foreclosure – Banks allows prepayment of gold loan and typically levy prepayment or foreclosure charges i.e. Nil.

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 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

Compare Gold Loan Interest Rates of Federal with other banks

Frequently Asked Questions on Federal Gold Loan

Are there any prepayment charges on gold loan?

Yes, you can prepay your jewel loan. Applicable prepayment charges - Nil.

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

Yes, you can apply gold loan online in Federal Bank to get a quick loan. Yes, Federal Bank offers gold loan online payment facility.

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.

How much gold loan can I avail from Federal Bank?

You can get upto Rs. 75 Lakh as gold loan from Federal Bank.


*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.