State Bank of India (SBI) Gold Loan

State Bank of India Gold Loan 18th September 2020	Details
Loan Amount	Rs. 20,000 to Rs. 20 lacs
Interest Rate	9.15% onward
Processing Fee	0.50% on the loan value + GST; minimum Rs. 500 + GST
Tenure	3 months to 36 months
Prepayment Fee	Nil
Gold Loan Scheme	Personal gold loan, Multipurpose gold loan, Liquid gold loan, Bullet Repayment gold loan, and Agricultural gold loan

State Bank of India Gold Loan is a secured loan where you pledge gold jewellery or asset to borrow a loan. SBI also accepts bank-purchased gold coins as security for funds. You can use the loan amount for any financial or emergency purpose. The financial institution has different gold loan schemes, out of which, personal gold loan and multipurpose gold loan scheme are the most popular.

• The bank has Liquid Gold Loan scheme, which is an overdraft facility.
• You can also take a loan against gold solely for agricultural purpose.
• SBI offers flexible repayment options. This helps borrowers to manage their finances and plan out repayments better.

In this post, we will discuss about SBI gold loan features, eligibility criteria, interest rate, fees, charges, types of loan against gold schemes, loan amount eligibility, documents required for application, repayment options, EMI, loan application procedures, and FAQs.

Features of State Bank of India Gold Loan

Below given are the features of SBI gold loan:

• The interest rate is as low as 9.15%. Further discounts on rates are applicable for agricultural gold loans.
• You can access flexibility in repayment options. Depending on the scheme chosen, you can opt for bullet repayment or EMI gold loan.
• You can borrow up to Rs. 20 lakhs. The maximum loan to value ratio is 75%.
• The tenure is up to 36 months. The tenure depends on the loan amount and your repayment capacity.
• The bank provides free security for pledged gold jewelleries/coins. Thus, the pledged gold will remain safe and secured. SBI will release the secured gold to you after successful repayment.
• There are no charges for prepayment and foreclosure.

SBI Gold Loan Eligibility Criteria

Different gold loan schemes may have different eligibility criteria. Hence, always check the eligibility norms for SBI loan against gold before you drop the loan application. This will help you to follow procedures to get the loan approved quickly. Below given are the eligibility criteria for State Bank gold loan:

Gold Loan SBI Eligibility Criteria	Details
Applicant’s Age	• You should be over 18 years of age at the time of loan application.
Applicant Detailse	• You can apply for the loan as an individual (single applicant) or with another person (co-applicant).
Type of Gold	• You must submit acceptable form of gold as per the bank’s norms. SBI may not accept gold bars, biscuits, mangal sutra, etc. • However, the bank accepts most of the types of gold jewelleries, along with bank-purchased gold coins.
Income	• You should have a steady source of income irrespective of your professional status. • But, a proof of income may not be necessary.
Bill	• In case of high loan amount, you may have to submit the receipt of the gold against which you need a loan.

SBI Gold Loan Interest Rate

The applicable State Bank of India gold loan interest rate influences the total cost of the loan. SBI offers the lowest gold loan interest rate starting from 9.15% only. Hence, most borrowers wish to apply for loan at this bank. At a lower rate of borrowing, you can save huge on the interest pay-out and total loan cost.

NOTE: The bank charges 1.25% above the MCLR-1 year.

SBI Gold Loan Schemes	Loan Amount	Tenure	Interest Rate
1. Personal Gold Loan	Rs. 20,000 to Rs. 20 lacs	3 months to 36 months	9.15% onward
2. Multipurpose Gold Loan	Rs. 20,000 to Rs. 20 lacs	3 months to 36 months	9.95% onward
3. Bullet Repayment Gold Loan	Rs. 20,000 to Rs. 20 lacs	3 months to 12 months	9.15% onward
4. Liquid Gold Loan	Rs. 20,000 to Rs. 20 lacs	3 months to 36 months	As per the borrower’s transaction history
5. Agricultural Gold Loan	Rs. 20,000 to Rs. 20 lacs	3 months to 36 months	1% to 2% discount on the standard rate of interest

SBI Gold Loan Charges and Fees

Apart from the rate of interest there are other SBI fees and charges you need to pay:

SBI Gold Loan Fees and Charges	Details
Gold Appraiser Charges	• You need to bear the gold appraiser charges as decided by the bank.
Processing Fees	• A one-time and non-refundable processing fee is also applicable. • The minimum processing fee is 0.50% of the loan amount, subject to Rs. 500 as the minimum fee. • The GST is applicable separately.
Penalty Charges	• In case of delay in paying EMIs or missing EMIs, penalty charges will apply as per the bank’s norms.
Prepayment and Foreclosure Charges	• If you choose to foreclosure or prepay the loan, then there are no charges applicable. • By choosing to repay the loan early, you can save a lot on the interest pay-out.

Types of SBI Gold Loan Schemes

State Bank of India gold loan schemes are of 5 types. These are Personal Gold Loan, Liquid Gold Loan, Bullet Repayment Gold Loan, Multipurpose Gold Loan, and Agricultural Gold Loan.

1. SBI Personal Gold Loan

This is the most commonly chosen loan against gold scheme against your gold jewellery.

SBI Personal Gold Loan	Details
Loan Amount	• Under this scheme, you can borrow between Rs. 20,000 and Rs. 20 lakhs.
Tenure	• The tenure is up 36 months.
Interest Rate	• 9.15% onward
Processing Fee	• A processing fee is applicable, which is 0.50% of the total loan amount. • The minimum processing fee is Rs. 500. • The bank will also apply GST separately with the processing fee.
Repayment	• The repayment begins exactly from a month after the date of disbursement.
LTV	• In this scheme, the maximum loan to value ratio is 75%. The remaining 25% is retained as margin by the bank. • This means, you can receive up to 75% of the gold’s current market value as the loan amount. • For instance, if the gold pledged is worth Rs. 10 lakhs, then you can borrow up to Rs. 7.5 lakhs.

2. SBI Liquid Gold Loan

Under this scheme, you will receive a fixed loan amount in your overdraft account. The loan amount will depend in the value of gold you pledge.

SBI Liquid Gold Loan	Details
Loan Amount	• Under this scheme, you can borrow between Rs. 20,000 and Rs. 20 lakhs. • Your account will be credited with the entire loan amount. • Cash credit limit is reviewed at annual interval.
Tenure	• The tenure is up 36 months.
Processing Fee	• A processing fee is applicable, which is 0.50% of the total loan amount. • The minimum processing fee is Rs. 500. • The bank will also apply GST separately with the processing fee.
Interest Charged	• The interest charged is monthly. And you must make monthly repayments.
Repayment	• You need to only pay the interest on the amount you withdraw. • For instance, the amount credited is Rs. 5 lakhs into your account. But you withdraw only Rs. 3 lakhs from the overdraft amount. • The interest charged will be on Rs. 3 lakhs and not the entire Rs. 5 lakhs.
LTV	• In this scheme, the maximum loan to value ratio is 75%. The remaining 25% is retained as margin by the bank. • This means, you can receive up to 75% of the gold’s current market value as the loan amount. • For instance, if the gold pledged is worth Rs. 10 lakhs, then you can borrow up to Rs. 7.5 lakhs.

3. SBI Bullet Repayment Gold Loan

This loan against gold scheme is perfect for those who want flexibility with repayment.

SBI Bullet Repayment Gold Loan	Details
Loan Amount	• Under this scheme, you can borrow between Rs. 20,000 and Rs. 20 lakhs. • Your account will be credited with the entire loan amount.
Tenure	• The tenure is up 12 months
Processing Fee	• A processing fee is applicable, which is 0.50% of the total loan amount. • The minimum processing fee is Rs. 500. • The bank will also apply GST separately with the processing fee.
Interest Rate	• The interest rate starts from 9.15%. • You need to pay the interest only till the period you continue the loan. • After this, you can choose to prepay or foreclose the loan and reduce the interest pay-out. • For instance, you borrow Rs. 5 lakhs for 1 year. After 6 months you want to now repay the entire amount. • Here, the interest rate will be applicable only for the period of 6 months.
Repayment	• Over the entire tenure, you need to only pay the interest amount in monthly instalments. • After the end of tenure, you need to repay the principal borrowed in lumpsum.
LTV	• In this scheme, the maximum loan to value ratio is 65%. The remaining 35% is retained as margin by the bank. • This means, you can receive up to 65% of the gold’s current market value as the loan amount. • For instance, if the gold pledged is worth Rs. 10 lakhs, then you can borrow up to Rs. 6.5 lakhs.

4. SBI Multipurpose Gold Loan

You can use the funds to fulfil any of your financial need. Many take this loan to meet emergency requirements. There are no hidden charges. The interest rate s competitive, also the repayment schedule is convenient.

SBI Multipurpose Gold Loan	Details
Loan Amount	• Under this scheme, you can borrow between Rs. 20,000 and Rs. 20 lakhs. • Your account will be credited with the entire loan amount.
Tenure	• The tenure is up 36 months.
Processing Fee	• A processing fee is applicable, which is 0.50% of the total loan amount. • The minimum processing fee is Rs. 500. • The bank will also apply GST separately with the processing fee.
Interest Rate	• 9.95% onward
Repayment	• The repayment begins exactly from a month after the date of disbursement.
LTV	• In this scheme, the maximum loan to value ratio is 75%. The remaining 25% is retained as margin by the bank. • This means, you can receive up to 75% of the gold’s current market value as the loan amount. • For instance, if the gold pledged is worth Rs. 10 lakhs, then you can borrow up to Rs. 7.5 lakhs.

5. SBI Agricultural Gold Loan

State Bank of India offers gold loans for agricultural and cultivation purposes. To avail this loan, you need to produce poof of agricultural land/cultivation in form of documents. The bank will keep a check on the usage of funds, which is only for farming activities.

SBI Agricultural Gold Loan	Details
Loan Amount	• Under this scheme, you can borrow between Rs. 20,000 and Rs. 20 lakhs • Your account will be credited with the entire loan amount.
Tenure	• The tenure is up 36 months.
Processing Fee	• A processing fee is applicable, which is 0.50% of the total loan amount. • The minimum processing fee is Rs. 500. • The bank will also apply GST separately with the processing fee.
Interest Rate	• 1% to 2% discount on the standard rate of interest
Repayment	• The repayment begins exactly from a month after the date of disbursement.
LTV	• In this scheme, the maximum loan to value ratio is 75%. The remaining 25% is retained as margin by the bank. • This means, you can receive up to 75% of the gold’s current market value as the loan amount. • For instance, if the gold pledged is worth Rs. 10 lakhs, then you can borrow up to Rs. 7.5 lakhs.

SBI Gold Loan Amount Eligibility

One of the questions regarding State Bank gold loan is, how much loan amount will you receive. The loan amount sanctioned depends on several factors.

Gold Loan Amount Eligibility	Details
Gold Quantity	• Net weight is one of factors the bank will consider calculating the eligible loan amount. • Gold net weight in the asset should be more than 50 grams.
Gold Quality	• Gold purity is calculated in carats and an important factor to determine the loan amount. • The purity of gold should be between 18 carats and 22 carats.
Loan to Value Ratio	• The current market value of the gold is also another factor. The margin retained by the bank is also a concern. • For SBI Liquid Gold Loan and Personal Gold Loan, the loan to value ratio is 75%. Thus, 25% margin is retained by the bank in these two loan schemes. • For Bullet Repayment Scheme, the maximum LTV is 65%. • For instance, if the value of pledged gold is Rs. 6 lakhs, then as per the LTV norms of 75%, you can receive a maximum of Rs. 4.5 lakhs as the loan amount.

Documents Required to Apply for Gold Loan SBI

You need to submit a few documents when you apply for the loan against gold. Below given is a list of documents that you must provide:

Documents for Loan Application	Details
Application Form	• Duly filled and signed SBI gold loan application form
Witness Letter	• If the borrower cannot read and write, then Witness Letter is also necessary
Photographs	• 2 passport-sized colour photographs of the borrower
Identity Proofs	• Proof of identity such as Passport/Voter ID/Aadhaar Card, etc • PAN Card
Address Proof	• Address proof such as Electricity bill/Telephone bill/d=Driving licence, etc

Gold Loan SBI Repayment Options

Below given are the repayment options for the loan:

• You can pay monthly EMIs till end of tenure.
• You can choose bullet repayment option. Here you pay the interest component every month till end of tenure. After this, you repay the principal borrowed as lumpsum.
• You can choose the Liquid Gold Loan overdraft facility and pay monthly interest on the borrowed amount.

State Bank of India Gold Loan EMI

SBI offers the easy EMI payment facility for all its loans, including loans against gold. The EMI amount is a fixed amount.

• You need to pay the EMI on a fixed date every month till end of tenure.
• The EMI or equated monthly instalment contains portion of both the interest amount charged and the borrowed principal.
• This amount depends on the loan amount, tenure, and rate of interest.
• The EMIs initiate from the month after the month of receiving the loan amount.
• The maximum tenure depends on the chosen gold loan scheme. The tenure is up to 36 months.

State Bank of India Gold Loan Application Procedure

Now that you understand the SBI Gold loan details, you must know the process to apply for the loan. The bank offers online as well as offline process to apply for a loan against gold. Previously, people used to only choose the offline method due to concern about the gold and its safely. But, with online application option available along with security facility, things have changed.

A) Apply for Gold Loan SBI Online

In the current digital age, you do not have to visit the bank-branch to apply for any loan. To apply for a loan against gold, you need to only visit the SBI official website.

SBI Gold Loan Online Application	Details
Visit SBI Official Website	• Get the online loan application from the official website of State Bank of India.
Application Form	• Now, provide accurate details in the form. • The details are usually your name, email address, mobile number, residence city, type of gold, and other information • You can submit the application online with the soft copy of the required documents.
Visit the Bank Branch	• The bank will review your loan application. If SBI finds your application conducive for further procedure, it will contact you and ask you to visit the nearest bank branch with the gold assets. • At the branch, the in-house valuer will verify the gold purity in carats and the gold net weight in grams.
Loan Agreement	• After this, the bank will take a lending decision, and if all goes well, you can sign the loan agreement.

B) Apply for Gold Loan SBI Offline

If you want to go the traditional way and not apply online for the loan, then you can choose to do so.

SBI Gold Loan Offline Application	Details
Visit the Bank Branch	• Just find the nearest State Bank branch in your vicinity. • Simply walk-in with the gold jewellery you wish to pledge.
Application Form	• A customer representative will provide you the gold loan application form. • You need to fill all the required details and sign the form before submission.
Verification	• The bank will then assess the loan application and other information. • After this, it will evaluate the gold to be pledged to know gold net weight and purity. • If the loan is approved, then you will get to know the maximum loan amount you can borrow.
Loan Agreement	• You can then decide the loan amount you want to borrow and proceed with the loan agreement.
Prepayment Fee	Nil
Gold Loan Scheme	Personal gold loan, Multipurpose gold loan, Liquid gold loan, Bullet Repayment gold loan, and Agricultural gold loan

Frequently Asked Questions about SBI Gold Loan

Below given are State Bank of India Gold Loan FAQs:

• 1. How does the bank calculate SBI gold loan eligibility?
  State Bank of India considers the type of jewellery (bangle, ring, necklace, gold coin, chain, etc), number of gold jewelleries, net weight (in grams) and purity (in carats) of the pledged gold, to calculate the loan amount you can borrow. Other details such as tenure and interest rate may also depend on these factors, along with your repayment capacity.
• 2. Which documents will you receive at the time of SBI Gold Loan disbursal?
  Below mentioned is the list of documents you will receive at the time of gold loan disbursement:

  • Demand Promissory Note or DP Note. This document states that the borrower promises to repay the loan amount at the said interest rate.
  • Delivery Letter of DP Note
  • Arrangement Letter
  • Note Delivery Letter for the pledged gold jewellery
• 3. How much is the LTV for SBI Bullet Repayment Gold Loan Scheme?
  The bank maintains a margin before approval and disbursal of the loan amount. As per the RBI guidelines, you are eligible for up to 75% of the gold’s current market value as the loan amount. State Bank of India may offer a lower LTV than 75% depending on the gold purity, net weight, and loan scheme. For the Bullet Repayment Gold Loan, SBI maintains a margin of 35%. Thus, the loan to value ratio or LTV is maximum 65% of the gold’s total value.
• 4. How to pay the SBI gold loan EMI?
  You can pay the EMIs online through the SBI online payment facility. During the loan disbursal, you will receive an account with login ID and password. Using these details, you can login to the account and repay the monthly instalment in any of the mentioned mode. The bank may also accept EMIs through cash payment, Demand Draft, or cheque.
• 5. How to check your SBI Gold Loan Statement?
  During the loan tenure, if you wish to check the payment history or details about the gold loan, then you can check the loan statement by logging into the bank account. The gold loan statement will have information about your loan.

  • The details include outstanding balance, credit and debit amounts, payment date, etc.
  • You can also download the statement from the official website of the bank.
  • The statement helps to get an idea about your current loan scenario.
  • In case of errors in the statement, you can get in touch with the bank, and ask for rectification of the errors.