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Federal Gold Loan Interest Rate

Federal Bank Gold Loan: Details 2022

Last Updated 19th Jul 2022

Federal Bank Gold Loan Interest rate starts at 7.99% 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 7.99% 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 @ 9.00%* Get upto ₹ 500* Voucher

Federal Gold Loan

You can avail Federal gold loan by pledging your gold ornaments for meeting urgent personal expenses like children's education, marriage and other financial emergencies in family or business. The gold mortgaged acts as a security to the loan. You can avail following benefits by availing gold loan in Federal bank:

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

Current Federal Gold Loan Interest Rate

Federal gold loan interest rate currently starts at 7.99% from the previous rate of 7.89%. The lowest gold loan rate of interest in Federal was increased by 0.1% on 27 Jun, 2022. You can avail jewellery loans for any purpose for a maximum tenure of 12 months. Federal offers a gold loan at the cheapest rates as it is a secured loan and has multiple repayment options like the gold loan Bullet Repayment Scheme, Overdraft Scheme.

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 rates starts from 7.99%
    • Federal Bank charges a processing fee of Nil
    • Loan Tenure of Gold Loan ranges from 6 months to 12 months
    • The 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 Required for Federal Bank Gold Loan

The documentation process of Federal Bank is smooth. You need to submit one proof of identity and address to get an 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

Comparison of Federal Bank Gold Loan Interest Rates and Other Charges with Top Banks

Gold loan interest rates in Federal Bank are very affordable. However, you must analyze multiple banks and their offers before applying for a jewellery loan.

Particulars Federal Bank SBI HDFC Bank
Current Interest Rate 7.99% - 7.99% 7.70% - 7.70% 9.00% - 15.00%
Previous Lowest Interest Rate 6.99% 6.99% 6.99%
Lowest Rate Difference 1% 0.71% 2.01%
Processing Fees Nil 0.25% of the loan amount, minimum-₹ 500 0.50% 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 ₹ 10 Lakh
Foreclosure Charges Nil Nil Zero prepayment charges post 6 months
Repayment Options Y Y Y
Lowest EMI Per Lakh ₹ 8,698 per lakh ₹ 3,120 per lakh ₹ 4,568 per lakh

How Can I Get a Gold Loan from Federal at the Best Interest Rates?

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

  • 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 loans.
  • Customer representatives of the bank will instantly contact you to fix up an appointment for a 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. If 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.

Federal Gold Loan Interest Rate Calculator

Lowest Gold Loan Interest Rate in Federal Bank is 7.99%. The factors that affect the Federal Bank gold loan interest rate are loan amount, loan tenure and loan required as a percent of the value of gold jewellery. Federal Bank’s existing account holders get a gold loan at the best rates compared to other customers. You can use the Federal Bank gold loan interest rate calculator to calculate EMI on gold loans at the lowest rates.

  • 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 loans between ₹ 1,000 and ₹ 75 Lakh. The gold loan interest rate Federal Bank 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 benefit from a low gold loan interest rate from Federal Bank.
  • Loan tenure: Federal Bank offers gold loans 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. The interest rate on loans with lower LTV will be lower compared to loans with higher LTV. The maximum LTV offered by Federal Bank is 75% calculated on the net weight of gold in your jewellery.
  • Purpose of Loan: All banks, including Federal Bank, also offer gold loans 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 carries some other charges while offering gold loans which includes:

  • Processing fees – Federal Bank charges minimum processing fees of Nil. To get the lowest fee, gold loan interest rates comparison, offers and Voucher apply online through MyLoanCare.
  • Prepayment and foreclosure – Banks allow prepayment of gold loans 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.

FAQs

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

No, Federal Bank has increased its gold loan rates by upto 0.1%. The lowest rate on Federal Bank gold loans has been increased to 7.99% from the previous rate of 7.89%. Federal Bank new rates are effective from 27 Jun, 2022.

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 a loan.

How can I check my Federal Bank gold loan status?

You can check the loan status of the Federal Bank gold loan by visiting the website and logging in to the Federal Bank net banking. Once logged in, go to the track loan application in the loans section. If you have applied for a gold loan through the MyLoanCare website, log in to your MyLoanCare account, and the status of your loan will be shown on the homepage 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 an 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 the loan from Federal Bank are Nil. Before enclosing your gold loan in advance, ensure that foreclosure the of Federal Bank gold is beneficial in managing the 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.

Does Federal Bank offer an additional discount on gold loan interest rates for women?

No, Federal Bank offers 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 the Federal Bank gold loan interest rate be negotiated?

Yes, the gold loan rate of Federal Bank 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. You can check Gold loan per gram in SBI bank before you avail of loan.

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 a loan. Further, the time to process a gold loan may also depend 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 holders can avail a gold loan for a maximum of 75% of the value of the gold at the lowest rate starting at 7.99%. The bank also provides gold without any income proof and CIBIL requirements.

What happens if the 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. Further, you may lose all your pledged gold if you skip your loan payment entirely. In addition, failure to repay your gold loan will also impact your credit score negatively.

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 - Aug 2022
  • 2022-05-10 : Federal Bank Changes Interest Rates on Gold Loans
    Federal Bank has increased the gold loan interest rates, and thus you can now avail of loans starting at 7.39%
  • 2022-04-19 : Federal Bank Increases Interest Rates on Gold Loans
    Federal Bank has increased the gold loan interest rates. After the change, the lowest rates now start at 8.50% from the earlier rates of 6.99%.
  • 2022-04-05 : Federal Bank Reports Growth in Total deposits by 5.3%
    The total deposits of Federal Bank have grown by 5.3% year-on-year to Rs 1,81,712 crore as of March 31. In addition, the gross advances also grew to Rs 1,47,644 crore from Rs 1,34,877 crore.
  • 2022-01-27 : Federal Bank Gold Loan Interest Rates
    Federal Bank has decreased the interest rate on gold loans. As a result, the lowest rates on gold loans start at 6.99%.
  • 2022-01-18 : Federal Bank Revises Gold Loan Interest Rates
    Federal Bank has increased the gold loan interest rates, and as a result, the bank is offering the lowest rates starting at 8.50%.
*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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