Gold loan is the cheapest form of borrowing. It is also the easiest and quickest way to get money when you need it immediately. A gold loan is a secured loan because you use your gold as collateral.
The interest rates on gold loans are lower than other personal loans and even home loans. The low-interest rate compensates for the fact that it is a secured loan, and the lender does not face many risks. Many banks offer gold loans at interest rates starting from 10.5% per annum.
To make it easier for you to find out which bank offers lowest interest rate on gold loan, we have compiled a list of 10 banks that offer lowest gold loan rate of interest in India:
|Gold Loan ProviGolders||Interest Rate||Loan Amount||Tenure||Processing Fee|
|Muthoot FinCorp||12% p.a. onwards||Rs 1,500 – No Limit||7 days to 36 months||0.25% to 1% of the loan amount|
|Yes Bank||9.24% p.a. onwards||Rs.3,000 onwards||3 months to 11 months||NA|
|HDFC Bank||9.90% onwards||Rs.25,000 onwards (Rs.10,000 for rural areas)||3 months to 24 months||1.5% + GST|
|ICICI Bank||11% p.a. onwards||Rs.10,000 to Rs.1 crore||3 months to 12 months||1% of the loan amount|
|Canara Bank||7.65% p.a. onwards||Rs.5,000 to Rs.20 lakh||6 months to 2 years||0.25% of the loan amount|
|Axis Bank||12.50% p.a. onwards||Rs.25,001 to Rs.25 lakh||From 3 months to up to 3 years||1% plus GST|
|Fincare Bank Gold Loan||9.90% p.a. onwards||Rs.1,000 to Rs.1.5 crore||3 months onwards||Rs.10 (at the time of loan settlement)|
|Federal Bank||8.50% onwards||Rs.1,000 to Rs.1.5 crore||Minimum 6 months||Varies for different schemes|
|Bank of Baroda||8.75% p.a.||Up to Rs.25 lakh||Up to 12 months||0% to 0.50% + GST|
|SBI||7.50% p.a. onwards||Rs.20,000 to Rs.50 lakh||Up to 36 months||0.25% + GST|
1. Muthoot FinCorp
The Gold Loan is one of the most popular products offered by Muthoot FinCorp. It is a secured loan that can be availed on your Gold Ornaments, Gold Coins, and Bars. The loan amount is disbursed within 15 minutes and you can get your pledged gold ornaments back on repayment of the loan amount. The rate of interest is based on the loan amount and tenure of the loan.
2. Yes Bank
Yes Bank Gold Loan is a unique product that offers you an instant loan against your gold ornaments. Our Gold Loan is one of the fastest ways to get money in times of need, and that too without having to sell your gold. You can borrow cash against your gold ornaments, coins, and bullion and take care of all your financial needs. Repayment is flexible as you can choose from various options including prepayment.
3. HDFC Bank
HDFC Bank Gold Loans are offered on the basis of the value of the gold you pledge as collateral. The quick gold loan amount is disbursed within minutes and can be used for any purpose such as medical expenses, business requirements, children’s education, or even for a family holiday.
4. ICICI Bank
ICICI Bank offers loans against gold in the form of jewelry, bullion, and coins. These loans can be used for a variety of purposes like meeting financial needs during a medical emergency, business expansion, and even wedding expenses. The funds can be availed either as a loan or an overdraft, as per one’s requirement. In addition, the bank also provides doorstep services for the convenience of its customers.
5. Canara Bank
Canara Bank’s Gold Loan is the best bet in times of any kind of emergency. We provide loans against your gold jewelry/ornaments. These loans are given at attractive interest rates and for flexible tenure. The loan amount is determined by the value of the gold pledged.
6. Axis Bank
Axis Bank’s gold loan offers several benefits including quick approval and disbursal of the loan amount, attractive interest rates, easy documentation, and customer-friendly policies.
7. Fincare Bank Gold Loan
We offer secured and hassle-free gold loans at an attractive interest rate and have a nationwide network of branches. Our customer-friendly policies, low-interest rates, quick processing, easy documentation, and simple repayment have made us the preferred choice for millions of customers who choose to bank with us for their personal finance needs.
8. Federal Bank
Gold loans from Federal Bank come with easy procedures, simple documentation, and quick disbursal. Federal Bank provides gold loans at attractive interest rates of 10.50% per annum. Loan up to Rs 5 lakhs can be availed against the gold ornaments you pledge for a period of one month to 36 months.
9. Bank of Baroda
The Bank of Baroda Gold Loan is available for a minimum period of 3 months with a maximum repayment period of 36 months. The processing charges for Gold Loans from Bank of Baroda are nominal.
State Bank of India is the leader in the gold loan business in India. It is the first public sector bank to start the business in its inception. SBI’s gold loan has been growing at a very rapid pace, driven by the rural population and farmers who need money for their children’s marriage, education, agriculture, and other purposes.