SBI Gold Loan Interest Rate

The interest rate on gold loan charged by other banks are:

For a better comparison, you can use our Gold Loan EMI Calculator to know how much monthly payments you will have to make on your gold loan. The calculator is easy to use, simply follow the below-given steps.

• Click here to go to EMI Calculator
• Enter the loan amount, interest rate and loan tenure that you are being offered by the bank
• The EMI amount will be displayed on the right-hand side of the screen

You may use the EMI Calculator to compare the EMI Payments across various schemes from the same or different banks. It will help you select the best scheme that will suit your needs. Also, the service is free of cost and can be used multiple times.

Certain factors will affect the interest rate offered to you. These factors are:

Loan Amount – The interest rate that you are offered is directly affected by the amount of gold loan that you ask for. Therefore, higher loan amounts will come with higher interest rates.

For example; Indian Overseas Bank, as of September 2020 charges the following interest rate on the amount of gold loan.

Note that the correlation of loan amount and interest rates may vary from bank to bank.

Purity & Weight – The purity and weight of the gold affect the loan amount and may have an impact on the interest rates offered. The appraiser will check the gold articles for both its purity and weight. Many banks do not accept gold ornaments that are below 18 k.

Income – Though banks do not require income proof from customers, they prefer to extend gold loans to only those applicants that have a steady source of income. Applicants with low or unsteady income may be offered a higher rate of interest to cover the risk.

Lending Rate of Banks – Another factor that determines the interest rate offered to you is the MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR (Repo Rate Linked Lending Rate). Banks that issue loan against MCLR rate is not affected by RBI’s directive as much as RRLLR based banks.

SBI provides gold loan at a preferential rate to those customers who have taken out a home loan. The interest rates across the schemes are:

To apply for SBI gold loan, applicants must have gold ornaments that meet the bank’s standard. Also, applicants must be above 18 years of age and must also have a steady source of income. Bank employees and pensioners can apply as well.

Documents Required

At the time of application the following documents are required:

• Application Form
• 2 photographs
• KYC Documents to establish address and identity
• Witness Letter in case of illiterate borrowers

At the time of disbursement the following documents are required:

• Demand Promissory Note & Demand Promissory Note Take Delivery Letter
• Gold Ornaments Take Delivery Letter
• Arrangement Letter

You may apply for SBI gold loan by following the below-given steps:

• Click here to visit the application platform
• Enter the required details, which include Required Loan Amount, Name, Mobile number, PIN Code, etc.
• Click on Continue

Follow the on-screen instructions to complete the application process.

After a successful application, you will get a call back from one of our representatives. He/she will share the nearest SBI Gold Loan branch near your location where you will have to go and get your gold articles appraised. Once your gold is appraised, you will be informed about the maximum amount of loan you can borrow against the gold along with other terms and conditions.

Do I need to submit income proof while applying?
No, you do not need to submit proof of income at the time of application. However, the bank provides loans to only those customers that have a steady source of income.

Does the bank offer separate interest rate on gold loan for agricultural purposes?
No, SBI does not offer a different interest rate on gold loan for agricultural purposes. You can take gold loan under its regular gold loan scheme and use the loan proceeds to cover your agricultural expenses.

Do I require a co-applicant to get SBI gold loan?
No, you do not require a co-applicant to get SBI gold loan.

Can I apply for SBI Gold Loan online?
Yes, you can apply for SBI gold loan online. However, you must get your gold articles appraised by a bank nominated appraiser.

What are the charges to get my gold ornaments appraised?
The charges will be disclosed at the time of application.