Top 10 Banks Offering Cheapest Gold Loan

Gold holds a very special place in the minds of the people of India, not only in monetary terms but also culturally. In our country, gold is the only commodity that has historically been able to resist the forces of inflation. Gold is considered a good store of value and has traditionally been used to get instant cash in an emergency.

In the olden days, only moneylenders and jewelers used to give loans by keeping gold jewelery and coins on collateral. But they charged exorbitant interest rates, which made it difficult for the borrower to repay the loan and get back the pledged gold. Now, various banks and financial companies have started offering gold loans to their customers at attractive interest rates and with easy application process. The various benefits offered by Gold Loan are instrumental in increasing its popularity with Indian customers who are in urgent need of funds for their expenses.

List of Best Gold Loan Offers in India

gold loan provider Rate of interest pressing fee tenure
Muthoot Finance 11.99% 0.25% to 1% of the loan amount 7 days to 36 months
Manappuram Finance 12.00% to 29% Rs.10/(Loan Settlement Time) up to 12 months
Union Bank 7.00% to 12.50% 1% of the loan amount up to 12 months
State Bank Of India 7.50% 0.50% of the loan amount 3 months to 36 months
Mahindra Bank Box 10.50% 2% of loan amount 12 months to 48 months
ICICI Bank 10% 1% of the loan amount 3 months to 12 months
HDFC bank 9.90% to 17.55% 1.50% of the loan amount 3 months to 24 months
axis Bank 13% 1% of the loan amount 3 months to 36 months
Central Bank Of India 9.05% 0.50% of the loan amount up to 12 months
federal bank 8.50% Zero 6 months to 12 months

Understand Gold Loan in India

Loan Against Gold is a type of secured loan in which the customer pledges his gold ornaments, coins with a bank or any financial institution. In return, the bank offers a convenient and hassle-free loan along with an attractive gold loan. The loan amount depends on the current market value of gold and after keeping enough margin to protect it from changes in market prices.

Here are some key features of gold loan that you must be aware of:

  • Financial institutions offer gold loans with an LTV ratio of up to 75%.
  • The application and disbursement process gets completed within a few hours.
  • Lenders require no credit history or credit checks.
  • There are several repayment options available to borrowers.
  • The security of gold is the responsibility of the lender.
  • Gold loan interest rates are lower than personal loans and credit cards.

If you have gold jewelery and coins at home and are in urgent need of funds, here are the top 10 gold loan banks to avail this facility.

Muthoot Finance

Muthoot Finance is one of the largest gold loan companies in India. With a wide network of 4,265 branches across 21 states and four union territories, it is known for its reputation in the industry. When it comes to gold financing, this is the most trusted name. Customers can get a loan up to Rs 1 lakh. Loan Against Gold Jewelery is available here within 5 minutes with minimal documentation and the process is hassle free. Interest rate 11.99%, which can be increased by mutual consent.

Manappuram Finance

Presently, with 3,200 branches across the country, Manappuram Gold is a well-known name in the finance industry. It is known for its reliability and quick loan processing. Manappuram approves and disburses Gold Loan within 5 minutes. It offers a wide range of schemes suitable for all income groups, with a maximum loan amount of Rs.1 crore. The interest rate is 12%, and the maximum repayment period is 12 months, which can be extended by mutual agreement.

Union Gold Loan

An initiative of Union Bank of India, Union Gold Loan lays more emphasis on needy farmers as well as individuals who are in need of immediate funds. The loan will be given only on gold jewelery and gold coins sold by banks. Currently, Union Bank of India offers lending rates of Rs 1800 per gram on 22 carat gold jewelry. The interest rates charged are linked to MCLR and currently starts from MCLR +2.65%. The maximum amount available is Rs 20 lakh.

SBI Gold Loan

SBI is the largest public sector bank in India with an extensive branch network. Customers can avail a loan from SBI with a maximum repayment tenure of 36 months. SBI also provides gold loan facility to farmers in rural areas. Customers availing gold loan will have to go through the same process as opening a new bank account. The maximum loan amount available here is Rs.20 lakhs starting at 7.50% interest rate.

Kotak Mahindra Gold Loan

Kotak Mahindra Gold Loan for 12 months can be availed instantly for urgent needs. The tenure can be extended as per the requirement. Only wearable gold jewelery of 18 to 22 carat purity and bank minted coins up to 50 grams per customer can be used as a guarantee for gold loan. The minimum loan amount is Rs 20,000 and the maximum is Rs 25 lakh, while existing customers can apply for a maximum loan of Rs 50 lakh. Kotak interest rates on Gold Loan range from 10.50% to 24% p.a.

ICICI Gold Loan

Gold loan scheme has been launched at an attractive interest rate starting from 10%. They assure a quick approval process of just 30 minutes. In addition, the bank offers Gold Loan with a maximum repayment tenure of Rs 15 lakhs up to 12 months. It is the responsibility of the bank to ensure the safety of your gold.

HDFC Gold Loan

HDFC Bank has recently made several changes in its gold loan scheme. With minimal documentation and approval within 45 minutes, HDFC Gold Loans are ideal for emergency situations. Interest rates start at 9.90% per annum, with processing fees at 1.50% plus taxes. The minimum amount available as HDFC Gold Loan is Rs.50,000.

Axis Gold Loan

Axis Bank is a private sector bank that offers Gold Loan up to Rs.25 lakh. Available at attractive and affordable interest rates starting from 13% p.a. The maximum repayment period is 36 months. Axis Bank offers Gold Loan on Same Day Disbursement for special requests. Overall, the bank promises quality, transparency and superior customer experience with its Gold Loan product.

Central Bank Of India Gold Loan

Central Bank offers Personal Gold Loan to its customers for up to 50 grams of gold. The maximum amount that can be given as gold loan is 70% of the market value of 22 carat gold or Rs 1,750 per gram. Central Bank Gold Loan interest rates start from 9.05% p.a. and limit the maximum repayment tenure to 12 months.

Federal Bank Gold Loan

Offers hassle free loan facility with interest rates starting from 8.50%. Customers can get an instant gold loan up to Rs 1.50 crore. It comes with flexible repayment tenure. No hidden charges, low processing charges and assured affordability make it a reliable option for customers seeking a gold loan.

With so many options available, you can pledge your gold in case of financial emergency. Avail a Gold Loan and take care of your needs efficiently.

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