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Gold Loan Interest Rate
13 Starts at 10.50%
Up to 75% of the gold current market value
1 day to 36 months
Up to 2% of loan amount
Gold Loan Per Gram
Between 2,292 and Rs. 2,801 determined by the gold?s quality and weight
Gold loan interest rates start at 10.50%. The loan schemes come with several repayment options such as overdraft scheme, bullet repayment scheme, and EMI (equated monthly instalment). Loan amount is up to 75% of the gold?s actual market value. The quantum of loan to value ratio (LTV) can be lower than 75%, depending on the norms of the financial institution. The loan amount and gold loan rates depend on the quality (carat), weight, and LTV of gold. Tenure of the loan is determined by your (borrower) repayment capacity.
At Loanbaba, you will receive all the details of the jewel loan with top banks and NBFCs in India. You can also apply for a loan against gold on our website.
Below mentioned are the top banks and NBFCs for gold loans in India.
As per comparison of gold loan rates by banks and NBFCs, we come to the conclusion that HDFC Bank, SBI, Andhra Bank, IndusInd Bank, and Yes Bank offer the lowest rate of interest between 10.50% and 11.5%. Also, comparison of processing fees by financial institutions reveal that Federal Bank, IIFL, and Andhra Bank offer the lowest fee on loans against gold. The rate of interest charged depends on many factors, including the type of jewellery loan scheme. You can enquire about the loan schemes with financial institutions, before choosing one.
Rate of interest is charged based on the loan tenure and borrowed amount. As understood, currently the lowest rate is 10.50%. But a gold loan interest rate calculator and calculations takes into account various factors to determine a rate, as mentioned below:
Below mentioned are the gold loan interest rate types:
You can get better rates on gold loan by following the below mentioned ways:
The jewel loan schemes are categorized based on the end purpose of the funds. Below-given are the most common jewellery loans.
Below-given is a list of documents needed for a loan against gold application.
elow-mentioned are FAQs about gold loan interest rates and schemes.
You can apply for a jewellery loan either offline at a bank/NBFC branch or online on the website of the financial institution or an aggregator such as Loanbaba. Some of the banks and NBFCs have their own mobile app, which allow you to not only apply for the funds, but keep track of loan application, checking balance of funds, and even complete the repayment through the app.
This is the most common repayment option for jewellery loans. Here, you have to repay the entire principal amount at the end of the tenure. During the tenure, you need to pay an interest amount in instalments. Interest is calculated on a monthly basis and is to be paid as EMI every month. This scheme is provided for short-term loans.
Though not the most popular repayment scheme for jewel loans, it can be opted for longer tenure schemes with high loan quantum. Here, you have to pay a portion of interest and principal amount as instalment every month on a particular date till the end of tenure. Maximum tenure is 4 years. So, by the end of the tenure, you would have paid the entire loan amount and interest, completely. Banks and NBFCs call for 6 months PDCs for the instalments, while others are exempt from PDC for larger loan amounts.
Overdraft gold scheme is for self-employed individuals and businesspersons with fluctuating requirements of funds. The loan comes in all ticket sizes but more suitable for larger loan quantum. Here, you can withdraw any fund amount or deposit surplus funds in account within a pre-approved credit limit. You can renew the credit limit at the end of tenure after payment of processing fees. The rate of interest charged is only on the amount of funds used at any given point of time.
In case you want to pay the entire or part of the loan amount before the tenure, then you can do so. If you choose to pay partly, then it is called part prepayment. If you want to pay off the entire outstanding amount, then it is called foreclosure. NBFCs and banks may levy a charge in both the scenarios. The fee can be up to 1% of the outstanding amount. Some financial institutions charge no foreclosure and prepayment fee at all if the repayment is done after a few EMIs. But some of the loan schemes come with a lock-in period until which you cannot repay the funds.
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