Central Bank of India Gold Loan is categorized as Cent Personal Gold Loan, Cent Business Gold Loan, and Cent Agri Gold Loan Scheme. Thus, the bank offers funds against gold jewellery and bank-purchased coins of 22 Carat and 24 Carat to take care of different financial needs. The loan amount is up to Rs. 20 lakhs. The loan to value ratio is up to 70% of the asset’s market value until altered by RBI and bank policies. The tenure of the loan varies according to the loan scheme, with a maximum limit of up to 60 months.

In the post below, we will discuss Central Bank of India Gold Loan interest rates and charges, types, their features, costs, terms, and conditions, with frequently asked questions.

Central Bank of India Gold Loan Interest Rate and Charges updated on

The Cent Gold Loan Interest Rates are as follows:

• Processing fees for Cent Personal Gold Loan is up 0.5% of the loan amount
• The rate is as per RBLR = Repo + Spread + Credit Spread. So, for a loan of Low/Medium Risk, the rate of interest is 4% + 5.05% = 9.05%
• Cent Business Gold Loan Interest Rate is MCLR + 1.00% for loans above Rs. 10 lakhs to up to Rs. 20 lakhs. The same is MCLR + 0.50% for loans up to Rs. 10 lakhs
• No processing fee for Cent Business Gold Loan of up to Rs. 5 lakhs. The same is Rs. 250 per lakh of loan amount between Rs. 5 lakhs and Rs. 20 lakhs
• For CKCC-Gold Loan, the rate is 7% under the Cent Agri Gold Loan Scheme. The facility for Interest Subvention is for up to Rs. 3 lakhs
• The interest rate is MCLR + 0.25% for other interest subventions
• For agriculture Cent gold loan there are no charges for documentation for loans up to Rs. 2 lakhs. After this, the charge is Rs. 50 for every Rs. 1 lakh for a loan amount above Rs. 2 lakhs but up to Rs. 20 lakhs. The maximum fee the bank demands is up to Rs. 1,000 only
• For crop production, there is no processing fee. However, for other agriculture purposes, the processing fee is nil for loans up to Rs. 25,000 but Rs. 120 per Rs. 1 lakh for a high sanctioned credit

Types of Central Bank of India Gold Loans

Here are the top 3 gold loan schemes by the bank:

1. Cent Personal Gold Loan

The purpose of the loan is to meet immediate personal expenses such as medical, travel, education, marriage, etc. It is also available for agricultural needs. The facility is available as a Demand Loan against gold jewellery pledged with the bank. The purity of gold assets should be at least 22 Carat. If pledging gold coins, then the maximum quantity is 50 grams per borrower. Only the gold coins from the bank are allowed as collateral.

Features of Central Bank of India Personal Gold Loan

Here are more details:

• The minimum and maximum loan amount is Rs. 10,000 and Rs. 20 lakhs, respectively
• The tenure of the loan is up to 12 months
• Margin retained is 30% of the gold’s current market value at the time of loan sanction
• The processing fee is 0.5% of the loan amount along with the applicable tax and appraiser fee

Cent Personal Gold Loan Interest Rate

Central Bank of India Gold Loan Interest Rate is at the repo-based lending rate:

• RBLR = Repo + Spread + Credit Spread
• Low/Medium Risk =4% +5.05% =9.05%

Cent Personal Gold Loan Per Gram Rate

Here are details on the maximum limit of a loan against gold per gram:

• The loan to value ratio and rate per gram depends on the RBI policies and bank norms
• These change from time to time. For instance, in the pandemic period, the bank was offering LTV of up to 90% on the 22 Carat gold asset’s current market price at a high per gram rate of Rs. 3,800
• However, later on, the rate per gram came down to Rs. 2,950 to Rs. 3,050 with fluctuation in the gold price
• Also, the bank went back to sanctioning up to 70% of the collateral value as the loan amount
• The per gram rate for gold coins sold by the Central Bank of India is Rs. 3,225 but this may change anytime
• The LTV for gold coins is 70% of the ongoing market price for 24 Carat gold
• The bank will also review the drawing power of the borrower every month. This is based on the gold’s market value

2. Cent Business Gold Loan

Central Bank of India Business Gold Loan is available for individuals of 18 years of age to 60 years old. The facility is available for new as well as existing customers. The eligible customers are individuals, partnerships, and Proprietorship Firms participating in business activities. So, the loan can be used for only business needs. The loan amount is between Rs. 10,000 and Rs. 20 lakhs.

Features of Cent Business Gold Loan

Here is more information:

• You can pledge gold jewellery of 22 Carat as well as 24 Carat purity
• The gold ornaments must bear a hallmark
• The bank also accepts gold coins as collateral. These should be minted and then sold by banks
• Tenure of the gold loan Central Bank is 12 months to 36 months
• Margin retained by the bank on the value of the gold asset is 20%
• Cent Business Gold Loan Interest Rate for a loan up to Rs. 10 lakhs are MCLR + 0.50%
• The interest rate is MCLR + 1.00% for credit over Rs. 10 lakhs and up to Rs. 20 lakhs
• Repayment for Cash Credit or Overdraft is on demand. Also, it is renewable on an annual basis
• There are no processing fees for loan amount up to Rs. 5 lakhs
• The processing fees is Rs. 250 per Rs. 1 lakh for a loan amount between Rs. 5 lakhs and Rs. 20 lakhs

3. Cent Agri Gold Loan Scheme

This Central Bank of India Gold Loan is for people and farmers who undertake agriculture and allied activities. So, the credit is for agricultural purposes only. This includes crop production requirements or investing in specific needs.The primary facility is for short-term production credit – CC/CKCC/OD or Demand Loan (single transaction). You need to repay the due within a year. But for the Term Loan facility, the tenure is up to 60 months.

Features of Cent Agri Gold Loan Scheme

Here are more details:

• You can pledge gold jewellery and bank-purchased gold coins of 22 Carat or 24 Carat
• If pledging gold coins, then the maximum weight is up to 50 grams per borrower
• For crop production, the loan amount is determined according to the Scale of Finance
• And for other purposes, the quantum of finances is as per the actual loan amount needed
• The maximum loan amount is up to Rs. 20 lakhs
• The margin retained by the bank is 20% of the pledged collateral market value
• This margin limit is for CC/OD/Short Term Loan with a tenure of up to a year
• The repayment tenure for cash credit/overdraft is valid for 5 years with an annual review
• The repayment for a Demand Loan is up to 18 months and based on income generation
• The tenure for a term loan is up to 5 years

Cent Agri Gold Loan Scheme Interest Rate and Charges

Read further for more information:

• The per gram rate for 22 Carat gold is Rs. 3,250. The same is Rs. 3,550 for 24 Carat gold
• The rate per gram is reviewed regularly. So, keep updated with the details on the official website of the bank
• Cent Agri Gold Loan Interest Rate is 7% for CKCC-Gold Loan. The facility for Interest Subvention is for upto Rs. 3 lakhs
• For other Interest Subventions, the rate is determined as MCLR+0.25%
• Documentation charges are none for a loan up to Rs. 2 lakhs. The same is Rs. 50 per Rs. 1 lakh thereof for a loan amount more than Rs. 2 lakhs to up to Rs. 20 lakhs. Maximum charges are Rs. 1,000
• There are no processing fees for production credit. But for needs other than production credit, the processing fee is Rs. 120 per Rs. 1 lakh on loan amount over Rs. 25,000 or part thereof. No charges apply for a loan below Rs. 25,000