Gold Loan Rates: Gold loan interest rates 2022: Top gold loan rates and comparison

To take care of a financial emergency, an individual has various options. These include taking a personal loan or redeeming their investments in financial instruments like the provident fund, mutual funds etc.

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When it comes to borrowing from a financial institution, other than availing a personal loan, one can also opt for a gold loan. If you are planning on taking a gold loan (or a loan against gold), here is what you need to know.

What is a gold loan?
A gold loan is a loan against gold. It is a secured loan where gold articles such as gold jewellery, ornaments etc. are taken as collateral by the lending bank/NBFC. The loan is given to the borrower against this gold as collateral.

Where to avail gold loan?
Apart from banks such as SBI, ICICI Bank, HDFC Bank etc., non-banking finance companies (NBFCs) also offer gold loans to individuals. NBFCs which offer gold loans include Muthoot Finance, Manappuram Finance etc.

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Interest rate on gold loan charged by bank and NBFC

Bank / NBFC	Gold Loan Interest Rate	Processing Fee
Bank of Maharashtra	7.00%	Rs.500 to Rs.2000 + GST.
Punjab National Bank	7.00%	0.75% of loan amount
Punjab & Sind Bank	7.00% to 7.50%	Rs.500 to 10000 max
Union Bank	7.25% to 8.25%
Canara Bank	7.35%	Rs.500 to Rs.5000
Indian Bank	7.35%	0.56% of the limit sanctioned
SBI	7.50%	0.50% + GST
HDFC Bank	7.75% to 15.75%	1% of disbursal amount
Bank of Baroda	7.75%	Applicable charges + GST
Kotak Mahindra Bank	8.00% to 17.00%	Upto 2% + GST
Karnataka Bank	8.49% to 8.79%
Uco Bank	8.50%	Rs.250 to 5000 max
Dhanlaxmi Bank	8.50%	1% + GST
Federal Bank	8.50% onwards
South Indian Bank	8.60%
Indusind Bank	9.00% to 17.00%	1% of loan amount
Central Bank of India	9.05%	0.75% of loan amount
City Union Bank	9.50%	Nil
Karur Vysya Bank	9.50%	0.50% (inclusive of Appraisal charges)
J & K Bank	10.00%	Rs 500 + GST
ICICI Bank	10.00% to 19.73%	1% of loan amount
Bandhan Bank	10.99% to 18.00%	1% + GST
Axis Bank	14.00%	0.5% + GST
Muthoot Finance	22% p.a. with 4% rebate if 100% interest is paid monthly
AU Small Finance Bank	Competitive interest rates	1% or Rs. 500 whichever is heigher

All data sourced from Economic Times Intelligence Group (ETIG)
Interest rate on gold loan sorted based on increasing order of maximum interest rate charged by bank/NBFC
Interest rate data as on May 19, 2022

What are the documents required?
To avail a gold loan, the bank or NBFC will ask you to provide various documents. Documents normally required include your proof of identity such as PAN, Aadhaar etc. and proof of address like Aadhaar, passport, Voter-ID card etc, and your photograph. Any additional documents required would vary from lender to lender.

What are the charges?
For loans like home, auto and personal loans, the borrower is usually required to pay processing charges/fees to avail the loan. While taking a gold loan, apart from processing fees, an applicant may be asked to pay for valuation of gold which will be used as collateral by the lending institution. For instance, HDFC Bank charges Rs 250 as valuation fees for loan up to Rs 1.5 lakh and Rs 500 for loan over Rs 1.5 lakh.

Apart from processing fees and valuation charges, a bank can also charge documentation and foreclosure charges.
Therefore, you should check with the bank and/or NBFC for all the charges that will be levied before availing the loan.

Disclaimer: The data/information given above is subject to change, hence before taking any decision based on it, please check terms and conditions with the bank/institution concerned.

For any queries or changes, please write to us on etigdb@timesgroup.com or call us at 022 - 66353963

( Originally published on Aug 07, 2020 )