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Lowest Gold Loan Interest Rates

Banks with lowest Gold Loan Rates

Last Updated 23rd Sep 2020

Currently, SBI offers the lowest gold loan interest rate of 7.50% for a tenure upto 36 months and hence, is one of the best banks for gold loan. The processing fee levied on a SBI gold loan is upto 0.50% of the loan amount, minimum Rs. 500 .

Banks Interest Rate Processing Fees Tenure
SBI7.50%0.50% of the loan amount, minimum Rs. 500 3 months to 36 months
Canara Bank7.65%1% of the loan amount, Min Rs. 1,000 and Max Rs. 5,00012 months
Federal Bank8.50%Nil6 months to 12 months
PNB8.75%0.70% of loan amount + taxes1 month to 12 months
IIFL9.24%Nil3 months to 11 months

Best Banks for Gold Loan

A gold loan is a secured loan availed against the mortgage of gold for a maximum tenure upto 36 months. You can compare the gold loan interest rates to avail best gold loan rate schemes. Gold loan can be availed for a lowest amount of ₹ 1,000. As per the gold loan amount, PNB can be considered as the best bank for gold as it offers gold loan for low fund requirement. Here is a list of other banks which provide the lowest amount at present.

Bank Interest Rates Loan Amount
Manappuram12.00%₹ 1,000
Federal Bank8.50%₹ 1,000
PNB8.75%₹ 1,000
Muthoot11.99%₹ 1,500
IIFL9.24%₹ 3,000

Banks with Highest Gold Loan Amount

Apart from short fund requirements, gold loans are also preferred for high value needs. You can get a gold loan of upto ₹ 2 Cr depending upon the amount of gold you have. Some of the popular banks that provide the highest gold loan amount are as follows.

Bank Loan Amount Interest Rates
Andhra Bank₹ 2,00,00,00010.70% - 10.70%
Manappuram₹ 1,00,00,00012.00% - 29.00%
Federal Bank₹ 75,00,0008.50% - 11.95%
Yes Bank₹ 50,00,00010.99% - 14.50%
HDFC Bank₹ 50,00,0009.90% - 17.90%

Andhra Bank provides maximum gold loan amount upto ₹ 2 Cr for a tenure ranging between 3 months to 12 months.Other than Andhra Bank, other top lenders offering maximum gold loan amount are Manappuram, Federal Bank, Yes Bank, HDFC Bank as per the current rates as on 23 Sep 2020.

Top 5 Banks with Shortest Tenure on a Gold Loan

A gold loan is available for a tenure ranging between 1 day to 36 months. Presently Manappuram provides gold loan for shortest tenure for 1 day at 12.00%. Other banks which provide gold loans for shorter tenures for less than 6 months are as follows.

Bank Minimum Tenure Interest Rates
Manappuram1 day12.00% - 29.00%
PNB1 month8.75% - 8.75%
IndusInd Bank3 months10.50% - 16.00%
Andhra Bank3 months10.70% - 10.70%
SBI3 months7.50% - 7.50%

Popular Banks with Bullet Repayment Scheme

With Bullet Repayment gold loan Scheme, you don’t need to pay the loan amount during your loan tenure. You can pay the entire principal amount of the gold loan and the interest payments at the end of the loan tenure. Interest on a gold loan is however calculated every month. Banks usually provide bullet repayment schemes for shorter loan tenures.

Bank name Gold loan Interest rate Tenure
SBI7.50% - 7.50%3 months to 36 months
Federal Bank8.50% - 11.95%6 months to 12 months
PNB8.75% - 8.75%1 month to 12 months
HDFC Bank9.90% - 17.90%3 months to 24 months

Popular Banks with Gold Loan EMI Schemes

With regular EMI option, gold loan borrowers who have cash inflows in the bank accounts can pay monthly EMI, that includes both principal component and interest payments. Some financial institutions also provide an option to pay interest as EMI, and the principal amount of the gold loan is paid at the end of the loan tenure. This scheme is especially popular for longer tenure gold loan schemes with higher loan amounts.

Bank name Gold loan Interest rate Processing Fee
PNB8.75% - 8.75%0.70% of loan amount + taxes
IIFL9.24% - 24.00%Nil
ICICI Bank10.00% - 19.76%1% of the loan amount
Yes Bank10.99% - 14.50%0.75% or Rs 500 whichever is higher
Muthoot11.99% - 11.99%0.25% to 1% of loan amount.

Popular Banks with Gold Overdraft Schemes

Bank Overdraft Scheme allows gold loan borrowers to withdraw the loan amounts up to the specified pre-approved credit limits. Borrowers can repay the loans flexible as per their convenience, and the interest is charged on the utilised portion of the gold loan amount at a given period of time. They can also renew the limit at the end of tenure by paying the processing fees. Some of the banks that offer overdraft facilities that are quite popular with borrowers are as follows.

Bank name Interest rate Processing Fee
Federal Bank8.50% - 11.95%Nil
PNB8.75% - 8.75%0.70% of loan amount + taxes
HDFC Bank9.90% - 17.90%1.50% of the loan amount
Yes Bank10.99% - 14.50%0.75% or Rs 500 whichever is higher

FAQs

Which bank is best for lowest gold loan interest rates?

As per the current rates, SBI is offering the lowest interest rate on gold loan starting at 7.50% and is one of the best banks for gold loan.

Which bank is best for providing gold loans for maximum loan amounts?

Andhra Bank is the best bank to take a gold loan for loan amount upto ₹ 2 Cr.

Which bank provides Overdraft facility against gold loans at lowest interest rate?

As per the current rates, Federal Bank offers the lowest interest rate on gold loan's overdraft scheme starting at 8.50%.

Which bank provides a gold loan for the shortest tenure?

Presently Manappuram provides gold loan for shortest tenure for 1 day at 12.00%


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