SBI Gold Loan Interest Rate

Gold Loans are loans availed by pledging your gold ornaments with a bank. SBI 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 SBI has the following benefits:

• SBI offers loans against gold with simple documentation, quick processing, and no hidden charges.
• You can avail gold loans of long tenure of 30 months.
• SBI has a special agricultural gold loan scheme for borrowers engaged in farming and looking to borrow funds for meeting their farming expenses. SBI interest rate on agricultural gold loans is lower than that of its regular gold loan scheme.

Country's largest public sector lender, State Bank of India announced a list of festive offers for its gold loan borrowers. The bank is now offering 100% waiver on processing fee for all gold loan customers who are applying through its digital platform YONO. Further, the gold loan customers will now have flexible repayment options for up to at the lowest interest of 9.50%.

If you are planning to take a Loan against Gold from SBI, 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 of up to 50 grams with a purity of 18 to 22 carat
• Customer Segments: SBI offers jewel loans to all individuals above 18 years of age including salaried, self-employed professionals, businessmen, students, pensioners and housewives
  Gold Loan
• Gold Loan Features
  • SBI Gold Loan Interest Rate starts from 7.50%
  • SBI charges a processing fees of 0.50% of the loan amount, minimum Rs. 500
  • Loan Tenure of Gold Loan ranges from 3 months to 36 months
  • Lowest EMI per lakh on Gold Loan from SBI is ₹ 3,111 offered at the lowest gold loan interest rate of 7.50% at the longest loan tenure of 36 months
  • SBI 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.
  Documents Required for Gold Loan
• Popular Gold Loan Schemes of SBI
  • Bullet Repayment Scheme

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

You can apply for a gold loan with SBI 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 SBI 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.

Lowest Gold Loan Interest Rate in SBI is 7.50%.The factors that are used by SBI to calculate interest on gold loan are loan amount, loan tenure and loan required as a percent of value of gold jewelry. SBI’s existing account holders get gold loan at best rates compared to other customers.

• Loan Amount: The amount of gold loan you 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. SBI offers loan between ₹ 20,000 and ₹ 20 Lakh amount.
• Relationship with the Bank: SBI 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 SBI.
• 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. SBI offers gold loan with a tenure of 3 months to 36 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, SBI 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 SBI is 75% calculated on net weight of gold in your jewelry.
• Purpose of Loan: All banks, including SBI also offer gold loan for agricultural purposes at low concessional rates, as the same is counted under priority sector lending targets of the bank. SBI's gold loan interest rate for agricultural loans is generally lower by 1-2% compared to its gold loan rate for regular customers.

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

• Processing fees – SBI charges minimum processing fees 1.50% of the loan amount. 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.

SBI offers several gold loan products to meet your various product requirements. These include loans with different repayment options

• Gold Loan with Bullet Repayment
  • SBI offers a bullet repayment option for its gold loans. Under this, customers can pay the entire principal amount of the loan at the end of the tenure.
  • This results in lower monthly payments (consisting of only interest component) during the life of the loan, reducing the burden significantly.
  • This repayment option is more prevalent for gold loans of short tenures.
• Gold Loan for Agriculture
  • SBI offers this scheme for farmers wherein, loan is offered to them against gold ornaments in order to meet farming expenses.
  • Presenting a proof of farming activity and ownership of an agriculture land is mandatory. The end use of the gold loan must be mentioned by the borrower.
  • The current rates for SBI Gold Loan for Agriculture are in the range of 7-9.95%.

The documentation process of SBI 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

✅How much gold loan can I avail from SBI?

You can get upto ₹ 20 Lakh as gold loan from SBI.

✅How can I check my SBI gold loan status?

You can log in to your MyLoanCare account, the status of your loan will be shown on the home page of your account. Alternatively, you can also check your gold loan status by logging into the net banking account that received at the time of availing the loan. However, if you are concerned about the loan approval status, then in case of a gold loan, the process of acceptance to disbursal is done within 24 hours.

✅Is gold loan SBI available online? Is there a SBI gold loan online payment facility?

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

✅Are there any prepayment charges on gold loan?

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

✅Does SBI offer Agricultural Gold Loan?

Yes, SBI offers gold loan for agriculture at 1- 2% lower interest rate than gold loan rates.