High penetration of loan collateral, generally lower interest rate than secured financing facilities such as personal loans, the possibility of quick and hassle-free loan disbursements, and less dependence on the borrower’s credit score make gold loans one of the most popular loan products in our country Makes one. Often taken against domestic gold jewelery, these loans not only help us in achieving our financial goals, but also come to our rescue during financial emergencies.
Most banks and non-banking financing companies (NBFCs) offer gold loans with several repayment tenure options. So, you will be advised to carefully compare your options to find the lender providing the best payment terms.
However, before applying for a gold loan, make sure that the value of your pledged gold will be sufficient to meet your financing requirement. Note that the price of 24 carat gold for 10 grams in August has slipped soon after exceeding Rs 56,000. Gold prices have started picking up in April after coming down to about Rs 44,000 (10 grams of 24-carat gold) in March. In addition, lenders usually approve a loan amount not exceeding 75% of the current market value of pledged gold, according to BankBor.
You will be advised to consider all these factors while determining your loan amount and choosing the lender. Finally, make sure that you have a full repayment plan in place to avoid any penalties and possible loss of valuable property.
To help you make an informed decision, we have prepared a list of gold loan interest rates currently offered by some of the leading banks and NBFCs in our country. We have also provided a nominal EMI for a gold loan of Rs 5 lakh taken by each lender for a 3-year tenure as mentioned in the table below.
Note, we only considered the lowest advertised gold loan interest rates for each of the lenders, did not include processing fees or any other fees for EMI calculations, and applied to you based on your loan amount, LTV ratio Rates may vary. , Loan term or other terms and conditions of your chosen lender.
Interest rates and nominal EMI on a gold loan of Rs 5 lakh with a tenure of 3 years
Disclaimer: Interest rates on gold loans for all listed (BSE) public and private banks and selected NBFCs have been considered for data compilation. Banks for which data is not available on their website are not considered. On 13 April 2021, data were collected from related websites. The lowest rate offered by banks / NBFCs has been considered in the table. EMIs are calculated based on the interest rate mentioned in the table for a loan of Rs 5 lakh with a tenure of 3 years (processing fees and other charges are assumed to be zero for EMI calculation). * IRR for Qtr from January to March 2021. Data compiled by BankB.com, an online marketplace for loans, credit cards and more.