Gold loans are a type of credit facility or secured loan which can be obtained against the security of gold items such as gold jewellery, ornaments, coins, etc. You can easily avail a gold loan from any bank or Non-Banking Financial Company (NBFC) with minimal documentation. Some of the best gold loan banks and NBFCs in India are SBI, ICICI Bank, HDFC Bank, Muthoot Finance, Manappuram Finance, IIFL, etc.
Below is the list of best loan against gold providers in India along with the features of their gold loan schemes:
Rupeek Gold Loans are instant secured loans with no EMI option at interest rate starting at 8.88% p.a. You can avail of emergency loan ranging from Rs 50000 to Rs 20 Lakhs against gold jewellery, coins & ornaments. With bullet repayment option you repay entire loan at the end of the tenure.
Below is the comparison between features offered by the best gold loan banks available in India.
|Bank||Rate of Interest (p.a.)||Loan Amount||Processing Fee||Tenure|
|IIFL Gold Loan||9.96% - 27%||75% to 90% of the gold’s value||Rs. 0 - 3%||1 - 5 years|
|Indian Bank Gold Loan||8.25% p.a. onwards||Up to Rs. 10 Lakhs||Up to 0.50%||Up to 35 months|
|UCO Bank Gold Loan||7.40% - 7.90%||No upper limit||Up to 0.20%||Decided by the bank|
|PNB Gold Loan|
9% p.a. onwards
|Rs. 25 000 to Rs. 25 Lakhs||0.30% or Rs. 500 + GST, whichever is higher||Up to 12 months|
|Bank of Baroda Gold Loan||8.85%||Up to Rs. 50 Lakhs||Up to 0.50% + GST||12 - 36 months|
|Bank of India Gold Loan||8.45% - 10.40%||Up to 85% of the gold’s market value||Up to Rs. 1,000||3 -36 months|
|Union Bank of India Gold Loan||8.25% - 10.15%||Up to Rs. 25 Lakhs||As decided by the bank||Up to 3 years|
|Canara Bank Gold Loan||9.15%||Rs. 5,000 - Rs. 35 Lakhs||1%||6 - 12 months|
|HDFC Bank Gold Loan||7.60% - 17.05%||Up to Rs. 1 Crore||1%||3 - 24 months|
|Federal Bank Gold Loan||8.64% onwards||Rs. 1,000 to Rs. 1.5 Crores||Up to 0.80%||6 - 12 months|
|SBI Gold Loan||8.55% - 8.65%||Rs. 20,000 - Rs. 50 Lakhs||Nil till 31.01.2023||3 - 36 months|
|ICICI Bank Gold Loan||10% - 19.8%||Rs. 50,000 - Rs. 1 Crore||1% + GST||6 - 12 months|
|Karnataka Bank Gold Loan||9.33% to 9.95% p.a.||Up to Rs. 25 Lakhs||Up to 0.25%||6 - 12 months|
|Axis Bank Gold Loan||17% - 19%||Rs. 25,001 - Rs. 25 Lakhs||Up to 0.50%||6 - 36 months|
|Bajaj Finserv Gold Loan||9.50% - 28%||Up to Rs. 2 Crores||Rs. 99||Up to 36 months|
|Muthoot Finance Gold Loan||12% - 27%||Rs. 1,500 - No upper limit||1%||7 days - 36 months|
If you are applying for a gold loan for the first time, make sure you consider the following important things:
UCO Bank, HDFC Bank, SBI, and Federal Bank are some of the best gold loan banks available in India as they offer competitive interest rates.
Yes. SBI gold loan is completely safe and trustworthy.
The interest rate of Rs. 1 Lakh gold loan may vary depending on various factors including the type of lender, loan scheme type, value of the gold to be pledged, etc.
Yes, if availed of from a reputed lender, a gold loan is a safe form of credit.
Look out for various gold loan options available in the market and borrow from the best gold loan bank or NBFC only, depending on the features offered.