Gold Loan Interest Rate

Lenders	Interest Rate
Bank of India	8.80% p.a. onwards
Canara Bank	9.00% p.a.
Punjab National Bank	9.25% p.a. onwards
IIFL Finance	11.88%-27% p.a.
Rupeek	0.74% per month (8.88% p.a.) onwards
ICICI Bank	9.25% p.a.
Axis Bank	17%-19% p.a.
Indiagold	0.80% per month onwards
State Bank of India	9.05%-10.20% p.a.
Indian Bank	8.80%-10.65% p.a.
Muthoot Finance Limited	10.90% onwards
Manappuram Finance Limited	9.90% onwards
South Indian Bank	14.80%-15.05%

Rates as of 7th November 2024

To apply for gold loan, applicants are required to get their self-owned gold, gold ornaments or coins appraised by a bank nominated appraiser. They also must be above 18 years of age with a steady source of income and maximum up to 65 years.

Documents Required

Banks generally ask for the following documents. If there is any other requirement, the bank will share the same at the time of application.

• Duly filled Application Form with 2 passport-sized photographs
• KYC Documents of applicant: Passport, Voter’s ID card, Aadhar card, Driving License, PAN card, Utility Bills (Water & Electricity)
• Last 12 months’ bank statement
• Any other document required by the lender

Factors that affect the interest rate on gold loan are:

Loan Amount – The interest rate that the bank charges you is directly related to the loan amount. Hence, if you require a large loan amount, be ready to pay higher interest on it.

The various methods through which you may pay off your gold loan amount are:

Bullet Repayment | EMI | Partial Payment | Pay Interest as EMI & Principal Later

Bullet Repayment – Under this method you must repay the entire amount, principal and interest, as a lump sum at the end of tenure.

Pay Interest as EMI & Principal Later – Here, You have the option to repay the interest amount per month as EMI. However, the borrowed amount must be paid in full at the end of tenure.

Regular EMI – The due amount, interest and principal, will be divided equally and made payable every month for the full duration of the loan.

Partial Payments – Under this method, you may pay the due amount as and when you see fit. The full amount must be paid off before the due date.

Q. Can anyone avail the gold loan?
Ans. Gold loan can be availed by anyone who is over 18 years of age and should own gold ornaments or items. Applicants must meet the bank’s other internal eligibility criteria as well.

Q. How long does it take to process Gold Loan application?
Ans. Gold loan is usually disbursed on the same day. However, the bank may take some time to appraise your gold articles, this may cause some delay. Once your gold articles have been appraised and verified, you can expect quick disbursal.

Q. How can I repay the gold loan amount?
Ans. You can repay the loan amount via cash, cheque, Demand Draft (DD) or through fund transfer. You may also use the bank’s mobile app to pay off the amount.

Q. Is it possible to repay my gold loan amount partially?
Ans. Yes, some gold loan schemes allow you to make a partial payment. However, your gold ornaments will be released only when the entire outstanding amount has been repaid.

Q. Can I prepay or foreclose my gold loan?
Ans. Yes, you may foreclosure the loan account. However, you might be charged foreclosure charges.

Q. How much loan amount can I expect for my gold articles?
Ans. The loan amount is dependent on various factors which include gold rate, quantity & purity of gold in the ornaments and relationship with the bank.