DBS Bank has the facility to cater to the requirements of agriculturalists and non-agriculturalists. The interest rate, quantum, repayment tenure and eligibility conditions for a DBS gold loan can differ accordingly. The gold loan is offered up to a certain amount against the pledged value of gold ornaments owned by individuals and farmers.
The non-agri customers can avail a gold loan to meet personal, as well as business expenses, while individual agriculturalists and farmers are qualified to avail a gold loan from DBS Bank, provided they are engaged in agricultural and allied activities.
DBS Bank offers an option to avail personal accidental insurance to all gold loan borrowers starting from less than Re 1 per day. The personal accident cover for gold loan customers is awarded under policy arranged by DBS Bank Ltd through Go Digit General Insurance Ltd.
DBS Bank gold loan interest rate fluctuates with different customer profiles. However, the applicable rate of interest on gold loans is relatively lower for agri customers as compared to non-agri borrowers. According to the revised rate of interest on DBS gold loan, the lender has pronounced a margin of 5.50% and 6.75% on agricultural and individual borrowers, respectively.
The stipulated margin is over and above the prevailing repo rate. Clearly, the margin for agricultural borrowers is lower following which the applicable gold loan interest rate for farmers is 12%, whereas the rate climbs to 13.25% for non-agricultural individual borrowers.
Gold Loan Comparison 2023
|Lenders||Loan Amount||Rate of Interest||Processing Fees|
|HDFC Bank||Minimum amount is Rs 25,000. For rural areas, the minimum amount is Rs 10,000||8.30% to 16.55% p.a.||Up to 1% of loan amount including taxes.|
|ICICI Bank||From Rs 50,000 to Rs 10 lakh||10% to 17.95% p.a.||1% of the loan amount + GST|
|Axis Bank||From Rs 25,001 to Rs 25 lakh||17% p.a.||Up to 0.50% of the loan amount + GST|
|Kotak Mahindra Bank||From Rs 20,000 to Rs 1.5 crore||8% to 24% p.a.||From 0% to 2% of the loan amount + GST|
|IndusInd Bank||Up to Rs 20 lakh||8.75% to 16% p.a.||1% of the loan amount + GST|
|Federal Bank||From Rs 1,000 to Rs 1.5 crore||Starting from 8.89% p.a.||Up to 1% of loan amount + GST.|
|Yes Bank||From Rs 25,000 to Rs 50 lakh||Up to 1% of the loan amount + GST||Nil|
|State Bank of India||From Rs 20,000 to Rs 50 lakh||8.70% to 9.80% p.a.||Nil up to Rs 3 lakh & up to 0.25% on amounts exceeding Rs 3 lakh|
|Bank of Baroda||Up to Rs 50 lakh||9.15% p.a.||Nil up to Rs 3 lakh.|
|Punjab National Bank||From Rs 25,000 to Rs 25 lakh. From Rs 50,000 against SGB, while upper limit is need based.||8.65% to 9.25% p.a.||Nil|
|Canara Bank||From Rs 5,000 to Rs 35 lakh||9.60% p.a.||Nil|
|Muthoot Finance||Minimum amount is Rs 1,500. No upper limit||10.50% to 22% p.a.||Nil|
To avail a gold loan from DBS Bank, an individual borrower is required to produce mainly two documents which are permissible as a proof of identification, proof of address and two copies of latest passport size photographs.
The agricultural borrowers aiming to secure a gold loan from DBS Bank are required to produce a third document that can act as a proof showcasing the possession of agricultural land. The need for an ID proof, address proof and two photographs will continue to remain the same. You can also check Loan Against Agriculture Land Online.
The agri borrowers can also enjoy a preferential rate of processing fee as against the normal individual borrowers. The applicable processing fees on DBS gold loans for farmers is 0.20% of the loan amount which can go up to a maximum of Rs 1,000, while the processing for individual customers is fixed at 0.40% of the gold loan amount.
Notably, there is no upper ceiling on the processing fees applicable on DBS gold loans for individual borrowers. A common GST at a rate of 18% is levied on processing fees and interest charges on all DBS Bank gold loan applications.
DBS Bank also collects appraiser commissions from gold loan customers. The first appraiser commission charged from all DBS gold loan customers is 0.20%. The commission is capped to a maximum of Rs 1,000 for agricultural borrowers, while the limit is Rs 2,000 for individual borrowers.
In case the loan amount exceeds Rs 10 lakh, DBS Bank charges a second appraiser commission from all gold loan applicants. The second appraiser commission for farmers, as well as individual customers is fixed at 0.20% of the gold loan amount subject to a maximum of Rs 400.
Beyond the applicable interest rate, processing fees and appraiser commissions, DBS Bank levies stamp duties on gold loan disbursals which are calculated as per the actual stamp duty rates that vary from state to state. The bank personally conveys the applicable stamp duty charges to gold loan borrowers from time to time.
Furthermore, DBS Bank imposes a penal charge for irregularities in repayments, overdue balance, or exceeding the LTV ratio. The penalty for such irregularities is 2% which is collected over the prescribed interest rate.
Interestingly, the processing fee is waived off for agricultural borrowers for a loan amount up to Rs 25,000, while the individual borrowers are subjected to a minimum processing fees of 0.10% for loan amounts up to Rs 25,000.
DBS gold loan facility is not available online either on the website or on the digibank application. Individual, as well as agri borrowers are required to visit the nearest DBS Bank branch for any assistance regarding agricultural and individual 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.
The minimum and maximum tenure for a gold loan may vary from 6 months to 48 months. However, the repayment period can go up and down based on the eligibility of the borrower, previous repayment history, loan amount, etc.
There is no requirement for a CIBIL score to get a loan as gold loans are secured with a higher value of physical asset. Nevertheless, people with a damaged or low CIBIL score will be subject to a higher rate of interest as compared to borrowers showcasing a higher CIBIL score.
The individual borrowers are entitled to get a gold loan from DBS Bank up to 66% of the value of 22 karat gold ornaments and agricultural borrowers can get a gold loan of up to 75% against the value of 22 karat gold ornaments.
The rate per gram of gold, the metric used to calculate the total value of gold ornaments, is considerably higher for farmers as compared to non-agricultural customers. As per the latest directive from DBS Bank, the rate per gram of gold for farmers is Rs 4,328, whereas individual borrowers only get a rate of Rs 3,548 per gram of gold.
The minimum gold loan that can be availed from DBS Bank is Rs 25,001, while the higher limit for agriculturalists is Rs 30 lakhs and Rs 20 lakhs for individual customers.