Gold holds a very special place in the minds of people of India. It holds a lot of value not only in monetary terms but culturally also. In our country, gold is the only commodity that has historically been able to resist the inflationary forces. Gold is considered an excellent store of value and has been traditionally used by the owners to avail instant cash loans in times of emergency.
Historically, only pawnbrokers and jewellers used to offer a loan against the collateral of gold jewellery and coins. But they used to charge exorbitant interest rates, which made it difficult for the borrower to repay the loan and get the pledged gold back. Now, various financial institutions have started offering Gold Loans to their customers at attractive interest rates and with an easy application process. Various benefits offered by Gold Loan are playing an important role in enhancing its popularity with Indian customers who need money urgently for upcoming expenses.
|Gold Loan Providers||Interest Rate||Processing Fee||Tenure|
|Muthoot Finance||11.99%||0.25% to 1% of the Loan Amount||7 Days to 36 Months|
|Manappuram Finance||12.00% to 29%||Rs. 10/ (Time of Loan Settlement)||Up to 12 Months|
|Union Bank||7.00% to 12.50%||1% of the Loan Amount||Up to 12 Months|
|SBI||7.50%||0.50% of the Loan Amount||3 Months to 36 Months|
|Kotak Mahindra Bank||10.50%||2% of the Loan Amount||12 Months to 48 Months|
|ICICI Bank||10%||1% of the Loan Amount||3 Months to 12 Months|
|HDFC Bank||9.90% to 17.55%||1.50% of the Loan Amount||3 Months to 24 Months|
|AXIS Bank||13%||1% of the Loan Amount||3 Months to 36 Months|
|Central Bank of India||9.05%||0.50% of the Loan Amount||Up to 12 Months|
|Federal Bank||8.50%||Nil||6 months to 12 months|
A loan against Gold is a type of secured loan in which the customer mortgages his/her gold ornaments, coins, or bullion as collateral with the financial institution. In return, the lender offers a convenient and hassle-free loan with attractive Gold Loan Interest Rates. The loan amount depends on the current market value of the gold and after keeping an adequate margin to protect against variations in the market prices.
Here are some of the salient features of a Gold Loan that you must be aware of:
If you have unused gold jewellery and coins at home and need money urgently, then here are the top 10 Gold Loan companies/banks to avail this facility.
Muthoot Finance is one of the biggest Gold Loan companies in India. With a wide network of 4,265 branches across 21 states and four union territories, it is well known for its reputation in the industry. When it comes to Gold Financing, it is the most trusted name. Customers can get a loan of up to Rs. 1 crore sanctioned within 5 minutes against jewellery. The loan process here is hassle-free with minimum documentation. Interest rate starts from 11.99% with a maximum repayment tenure of 36 months, which can be extended with mutual agreement.
Currently, with 3,200 branches nationwide, Manappuram Gold is a well-known name in the finance industry. It is recognized for its reliability and speedy loan processing. Manappuram approves and disburses Gold Loans within 5 minutes. It offers a wide range of schemes suitable for all income groups with a maximum loan amount available being Rs. 1 crore. Rate of interest starts from 12%, and the maximum repayment tenure is 12 months, which can be extended on mutual agreement.
An initiative from Union Bank of India, the Union Gold Loan lays more emphasis on the needy farmers along with the individuals who require money urgently. The loan will be offered only on gold ornaments and on the gold coins sold by banks. Presently, Union Bank of India provides a lending rate of Rs. 1800 per gram on gold ornaments of 22 carats. Interest rates charged are linked to the MCLR and at present starts from MCLR +2.65%. The maximum amount available has been capped at Rs. 20 Lakh.
SBI is the biggest public sector bank with an extensive branch network in India. Customers can avail loan from SBI with a maximum repayment tenor of 36 months. SBI also offers Gold Loan facility to farmers in rural areas. Customers availing the Gold Loan will have to go through the same process as opening a new bank account. The maximum loan amount available herein is Rs. 20 Lakh with interest rates starting from 7.50%.
Kotak Mahindra Gold Loan can be availed instantly for urgent requirements for 12 months. The tenure can be extended as per the requirement. Only wearable gold jewellery of 18 to 22 karat of purity and bank minted coins up to 50 gms per customer can be used as collateral for Gold Loans. The minimum loan amount is Rs. 20,000 and maximum is Rs. 25 Lakh for new customer, while existing customers can apply for a maximum of Rs 50 Lakh. Kotak Interest rates on Gold Loans range from 10.50% p.a. to 24% p.a.
ICICI Bank has recently launched Gold Loan scheme at an attractive interest rate starting from 10%. They assurequick approval process of just 30 minutes. Furthermore, the banking major offers Gold Loans up to Rs. 15 Lakhs with maximum repayment tenor being 12 months. It is the responsibility of the bank to ensure the safekeeping of your gold.
HDFC Bank has recently made many changes to its Sampoorna Bharosa Gold Loan scheme. With minimal documentation and approvals within 45 minutes, HDFC Gold Loans are ideal for emergency situations. Interest rates start from 9.90% per annum with processing charges being 1.50% plus taxes. The minimum amount available as HDFC Gold Loan is Rs. 50,000.
Axis Bank is a private sector bank that offers Gold Loan of up to Rs. 25 Lakh to its customers at attractive and affordable interest rates starting from 13% per annum. The maximum repayment tenor available is 36 months. Axis Bank offers Gold Loans on same day disbursals for special requests. In all, the bank promises quality, transparency and superior customer experience with its Gold Loan product.
Central Bank offers Cent Personal Gold Loan to its customers for up to 50 grams of gold per borrower. The maximum amount offered as a Gold Loan is either 70% of the market price of 22-carat gold or Rs. 1,750 per gram. Central Bank Gold Loan interest rates starting from 9.05% per annum and caps the maximum repayment tenor at 12 months.
Federal Bank offers a hassle-free loan facility withinterest rates starting from 8.50%. Customers can avail instant Gold Loan of up to Rs. 1.50 Crore with flexible repayment tenor. No hidden charges, low processing fee and assured affordability make it a reliable option for customers seeking a Gold Loan.
With so many options available, do not let your gold lie unused in case of financial emergency. Avail a Gold Loan and take care of your exigencies efficiently.
Also Read: Gold Loan or Personal Loan: What to Choose
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