SBI Gold Loan Interest Rates

SBI gold loan interest rates are most affordable, starting at only 10.25%. Both new and existing State Bank of India customers can opt for a loan against gold. The actual interest rate depends on various factors such as gold purity, loan value, loan to value ratio, etc. The provides all information about SBI gold loan rate of interest.

SBI Gold Loan and Interest Rate Details

Gold Loan


Interest Rate

Starts at 10.25%

Processing Fee

0.50% on the loan value; minimum INR 500 applicable

Tenure of the loan

3 – 36 months

Loan Value

Rs. 20,000 - 20 Lakh

Prepayment Fee


Gold Loan Scheme

Bullet Repayment Scheme

Features of State Bank of India Gold Loan

  • These gold loans are provided to the borrowers for their personal as well as their business requirements.
  • No prepayment charges apply on the jewel loans.
  • The collateral or the security to be provided for these loans is the gold jewellery or gold coins.
  • Gold jewellery or coins of no more than 50 grams are accepted. They should have their purity levels of 18 – 22 carat.
  • The customer segments of the SBI offered jewel loans include businessmen, students, pensioners, salaried people, self-employed professionals as well as homemakers. The applicant should be at least 18 years old.

Using the Interest Rate Calculator for SBI Gold Loan

The lowest applicable charges for State Bank gold loan are 10.25%. The interest rates depend on the loan value, purity of gold and loan to value ratio. The existing SBI customers stand at an advantage of availing loans at lesser rates compared to regular users.

  • Loan Value

As mentioned above, the actual loan value you can avail depends on the jewellery you pledge with the bank. The value is determined by the purity level of gold on per gram basis. Higher loan values attract lower interest rates. The limits of loan one can avail are between INR 20,000 to 20 lakhs.

  • Maintaining Relationships

Existing customers can apply for special offers if they have maintained a healthy relationship with the bank in the past. Thus, maintaining relationships leads to attracting low interest rates when you need loans.

  • Tenure of the Loan

Low tenure loans attract high interest rates. You can avail gold loans from State Bank for tenure between 3 to 36 months. 

  • Loan to Value Ratio

The loan depends on the gold pledged. However, it is no more than 75%. State Bank of India also provides loans with low LTVs. The interest rates go low in this case. The ratio at max cannot cross 75% of the net gold weight.

  • Loan against Gold Purpose

The bank loans at concessional interest charges for agricultural use. This is because the agriculture sector is the highest priority sector in the industry. Thus, the agrarian loans are available at 1 – 2%.

Why Choose SBI Gold loan?

The State Bank of India has attractive offer on gold loan. It charges nominal rate of interest. The loan amount can be used for desirable purpose. Loan tenure is flexible and one can get maximum amount as per the gold weight. The procedure for loan sanctioning is transparent and the bank has helped several customers fulfil their financial needs with loan against gold.

Documentation Required for State Bank of India Gold Loan

You need to show your identity proof and address proof to apply for the loan. Also provide your basic KYC details and recent passport-sized photographs.

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