Gold has always been a friend in need in India. During times of financial strain or a cash crunch, both gold and yellow metal loans are helpful. Banks keep gold jewelry or other gold goods as collateral when someone asks for a gold loan. People can obtain funding through gold loans without having to sell their gold.
When EMI payments are repeatedly missed, most banks warn the borrowers, and if the borrower continues to default, the gold is eventually sold at auction. The following banks and NBFCs are providing the best interest rates on gold loans.
Bank of Maharashtra
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The Maha Gold gold loan system is provided by the Bank of Maharashtra.
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Interest Rate: 7.0% annually
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Rs 5 lakh is the maximum loan amount.
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Rs 20,000 is the minimum loan amount.
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500 to Rs. 2000 plus GST is the processing fee.
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Repayment: A maximum 12-month repayment period is permitted.
State Bank of India (SBI)
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Two gold loans are available from SBI: the personal gold loan and the real estate gold loan.
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50 percent annual interest rate
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50 lakh rupees maximum loan amount
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Rs 20,000 is the minimum loan amount.
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Processing Fee: 0.25 percent of the loan amount, plus applicable GST (minimum of Rs. 250).
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Flexible 12- to 36-month repayment terms are available.
Canara Bank
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Agricultural gold loan schemes, Swarna gold loan schemes, and MSME gold loan schemes are the three categories of gold lending schemes that Canara Bank offers.
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Interest rates range from 7.35 to 7.65 percent annually.
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35 lakhs is the maximum loan amount.
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Rs 5,000 is the minimum loan amount.
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50% of the loan amount is required as a processing fee (minimum of Rs 500 and maximum of Rs 5,000 for Swarna Loans and 50 percent of charges applicable to Swarna loans for Swarna Express loans.)
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Flexible possibilities for payback, from 6 months to 2 years.
Punjab & Sind Bank
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Interest rates range from 6.80 to 7.5 percent annually.
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25 lakh is the maximum loan amount.
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Rs 15,000 is the minimum loan amount.
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Processing Charge 500 rupees for loans under Rs 2 lakh, and 0.50 percent of the amount for loans over Rs 2 lakh (a maximum of Rs 10,000)
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Repayment: A maximum 12-month repayment period is allowed.
Indian Bank
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Borrowers with middle- and low-income levels can apply for gold loans through Indian Bank.
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Interest Rate: 7.0% annually
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80–85% of the market value of the gold jewelry pledged, or the scale of financing or unit cost as determined by DLTC and NABARD, is the loan amount (whichever is lower)
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Processing Charge 0.30 percent of the loan amount for loans between Rs. 25,000 and Rs. 5 lakhs (a minimum of Rs 300). 0.28% of the loan amount is required for loans between Rs. 5 lakh and Rs. 1 crore (a minimum of Rs 1,500)
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Repayment: 12 months for regular Agri Jewel Loan products and 6 months for bumper loans.
