Are you looking for a gold loan? Discover the cheapest interest rates offered by banks and NBFCs
If you are considering taking out a gold loan for non-farming purposes, you may want to finalize your decision in a few days. In August last year, the Reserve Bank of India announced to increase the maximum loan-to-value ratio (LTV) for gold loans from 75% to 90% in order to help borrowers secure an amount of higher loan on the same amount of gold pledged in an offer to support the financing needs of citizens during the Covid-19 crisis. This relaxation, however, is valid until March 31, 2021, so you have little time to waste if you want to take advantage of the facility.
The wide availability of household gold, relatively lower interest rates than unsecured loans like a personal loan, quick and hassle-free disbursement and less reliance on the credit rating of the company. borrower make gold loans one of the most popular financing facilities in our country. According to BankBazaar, these loans could help us meet our critical life goals, but also come to our rescue in a financial emergency.
That being said, before applying for a gold loan, make sure that the loan amount sanctioned would be sufficient to meet your financing needs, compare your options between different lenders to find a deal with the best repayment terms, and have a full repayment plan to avoid additional penalties and the potential loss of a valuable asset.
In order to help you make informed decisions, we’ve compiled a list of interest rates on gold loans currently offered by some of the major banks and non-bank financial corporations (NBFCs) – including SBI, HDFC Bank, Punjab & Sind Bank, BoI, GNP and Muthoot Finance – in our country. We have also provided indicative IMEs for gold loans of Rs 5 lakh taken for a term of 3 years by each of the lenders mentioned in the table below.
Note that we have only taken into account the lowest interest rates on gold loans advertised for each of the lenders, that we have not included the processing fees or any other charges for the calculation of the lender. ‘EMI, and the rates that apply to you could be different depending on your loan amount, LTV ratio, loan term, or any other condition of the lender you have chosen.
Indicative interest rates and IME for gold loans of Rs 5 lakh with terms of 3 years
Disclaimer: Interest rates on gold loans for all public and private listed banks (ESBs) and some NBFCs have been taken into account for the compilation of the data. Banks whose data is not available on their website are not taken into account. Data collected on the respective bank’s website as of March 23, 2021. The lowest rate offered by banks / NBFC has been reflected in the table. The EMI is calculated on the basis of the interest rates mentioned in the table for a loan of Rs 5 lakh with a term of 3 years (the processing fees and other charges are assumed to be zero for the calculation of the EMI) . * IRR for the October-December 2020 quarter. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.