IDBI Bank Gold Loan
IDBI Bank offers various gold loans at attractive interest rates, starting at just 5.88% per annum. The gold pledged by the borrower is kept safely in a vault, and the bank claims to disburse the loan amount in just one hour.
Apply for IDBI Bank Gold Loan @ 5.88% Interest Rate
Benefits of IDBI Bank Gold Loan
IDBI Bank is one of the most prominent gold loan suppliers in the country with a proven track record. The interest rates charged by the bank are among the lowest in the segment. The gold loan disbursement process is quick – just 60 minutes from application as claimed by the bank – and the borrower need not worry at all about the safety of their pledged gold.
Some other advantages are:
- The IDBI gold loan can be used to meet any of your financial needs. There are diverse gold loan schemes.
- As long as you have good quality gold to pledge, the loan application, approval, and disbursement processes are hassle-free and without many requirements.
- No income proof is needed till the loan amount of Rs 20 Lakh. The bank only demands basic KYC documentation (identity and address proofs).
- For existing customers of the bank, the process is even more streamlined. Also, they can make use of the bank’s special offers.
- Door-step service in 30 minutes.
- You can avail of the loan amount in a single visit.
- The IDBI Bank gold loan interest rate is low as it’s a secured loan.
- Flexible repayment tenures.
- Availability of overdraft facility.
- The bank claims to offer the maximum amount against your gold.
- No hidden charges.
- Access to your loan account 24x7.
- All the pledged gold is stored in fire-and water-proof locks under strict surveillance. No extra charges for this facility.
- If the borrower decides to opt for a gold loan foreclosure, the IDBI Bank charges a small fee, only up to .50% on the principal amount.
- Pre-and payment facility.
IDBI Bank Gold Loan Interest Rate
While the IDBI Bank is known to charge low interest rates against gold loans, the exact rate of interest that a borrower is charged depends on factors like:
- The loan amount applied for
- The quality or purity of the gold being pledged to the bank
Here’s a quick look at some essential figures:
| IDBI Gold Loan Interest Rate | Starting at 5.88% p.a. |
| Loan Processing Fee | 1% of the Principal Amount |
Other fees, such as the valuation fee, loan foreclosure charges, late repayment charges, and renewal fee, etc., are all spelled out clearly to the borrower. There are no hidden charges.
Types of Gold Loans Offered by IDBI Bank
IDBI Bank offers gold loans to address under the following categories:
- Agricultural Gold Loans
- Business Gold Loans
- Loan to meet personal needs
The bank also offers gold loans to address urgent financial requirements concerning education, social obligations, medical needs, margin amount to purchase a home, etc.
Small traders and businesses can also apply for this loan.
IDBI Bank Gold Loan Eligibility Criteria
As the IDBI gold loan is fully secured, the eligibility requirements are not very high. Unlike a home loan or other personal loans, no income proof is needed till the loan amount of Rs 20 Lakh.
The documentation process is mainly KYC-related, and the loan disbursement takes just around an hour after the application is submitted. The valuation and approval process is super quick.
Eligibility at a glance:
| Nationality | Indian |
| Age | 18-70 years |
| Employment Status | Salaried/Self-employed |
| Key requirement | Gold articles/coins/jewellery |
| Gold quality and quantity | 18 to 24 carats |
Documents Required for IDBI Bank Gold Loan
The IDBI Bank Gold Loan per gram requires minimal documentation. So, if you have spare gold jewellery and require some extra capital to meet your financial needs, all you need to do is apply for the IDBI gold loan.
You will have to fill up the gold loan application form and submit it to the bank along with the following documents:
| Identity Proof | Aadhar Card / Passport / PAN Card / Voter’s ID, etc. |
| Address Proof | Aadhar Card / Driving License / Ration Card, etc. If you live in rented accommodation, you will need to submit the rent agreement or water / electricity bills for the last three months. |
| Photographs | Two passport size photos of the applicant (The face must be clear and recognizable. No spectacles) |
| * Agricultural land proof | This is needed only if the loan is for agricultural purposes. |
| * Any other documents requested by the bank on case-to-case basis | |
IDBI Bank Gold Loan Calculator
Applicants can use the IDBI Gold Loan EMI Calculator to know the monthly instalments that they would be required to repay to the bank.
However, to use the gold loan rate calculator, you should have the following information:
The rate of interest that the lender is charging
The principal amount
The repayment tenure offered by the lending financial institution
* The prevailing gold price at the time of application will also be a factor that decides your EMI
For a gold loan of Rs 5 Lakh, here’s a chart to give you an idea of how your EMIs will change with different interest rates and repayment tenures:
| Rate of Interest | Loan Repayment Tenure | EMI Amount | Total Interest Payable |
|---|---|---|---|
| 5.88% | 1 Year | Rs 43,005 | Rs 16,067 |
| 2 Years | Rs 22,133 | Rs 31,198 | |
| 3 Years | Rs 15,183 | Rs 46,616 | |
| 7% | 1 Year | Rs 43,263 | Rs 19,160 |
| 2 Years | Rs 22,386 | Rs 37,270 | |
| 3 Years | Rs 15,483 | Rs 55,787 | |
| 10% | 1 Year | Rs 43,957 | Rs 27,495 |
| 2 Years | Rs 23,072 | Rs 53,739 | |
| 3 Years | Rs 16,133 | Rs 80,809 |
Comparing IDBI Gold Loan to Other Lenders
IDBI Bank charges the lowest interest rate on a gold loan. Here’s a comparison with other banks / non-banking financial companies that also offer gold loans at competitive interest rates.
| Banks | Amount | Interest Rate | Per Gram Rate |
|---|---|---|---|
| IDBI Gold Loan | Rs 10,000 to Rs 20 Lakh Up to Rs 1 Crore (with income proof) | Starts at 5.88% per annum | Rs 2,940 to Rs 3,450 |
| Muthoot Gold Loan | Up to Rs 1 Crore | Starts at 1.00% per annum | Rs 2,940 to Rs 3,450 |
| PNB Gold Loan | Rs 20,000 to Rs 10 Lakh | Starts at 8.85% per annum | Rs 2,940 to Rs 3,450 |
| Canara Bank Gold Loan | Rs 5,000 to Rs 35 Lakh | Starts at 8.90% per annum | Rs 2,940 to Rs 3,450 |
| ICICI Bank Gold Loan | Rs 5,000 to Rs 35 Lakh | Starts at 9.15% per annum | Rs 2,940 to Rs 3,450 |
Fee & Charges of IDBI Bank Gold Loan
IDBI Gold Loan is a safe and convenient way to meet any sudden financial requirements without adding any extra burden on yourself. All you need are some spare gold articles, coins, jewellery, etc., which may be lying untouched in a locker or at your home.
In general, the interest rates charged by the bank against gold loans are low. However, the exact interest rate offered to you will primarily depend upon two factors:
The loan amount you’re applying for
The quality of the gold that you’re depositing with the bank
Here’s a breakdown of the fees and charges levied by IDBI Bank against gold loans:
| Interest Rate | Starts at 5.88% p.a. |
| Processing Fee | 1.00% of the Loan Amount |
| Prepayment & Foreclosure charges | 2% plus GST (within 3 months) 0 (after 3 months) |
| Valuation Fee | Rs 250 for loans up to Rs 1.5 Lakh Rs 500 for loans above Rs 1.5 Lakh |
| Late Repayment Charges | 2% p.a. along with the interest rate applicable |
| Renewal Processing Fee | Rs 350 plus GST |
IDBI Bank Gold Loan Customer Care
The toll-free numbers for contacting the IDBI Bank customer care are:
- 1800-209-4324
- 1800-22-1070
Call centre numbers, chargeable for customers, are:
- 022-67719100
- 0091-22-67719100
For more information, visit: https://www.idbibank.in/customer-care-centre.aspx#ProductsRelatedSupport
FAQs
Gold loan per gram rate is the amount that a bank or non-banking financial corporation will extend to you for every gram of gold you pledge to it. Let’s say, you have 100 grams of gold to deposit and according to the gold rate today, your lending bank is offering Rs 3,450 per gram of pledged gold. The total loan amount that will be offered to you in this case would be Rs 3,45,000.
You can contact the bank through one of its branches or on the toll-free numbers mentioned on its website. All you need to apply for a gold loan at IDBI Bank is the gold that you would deposit (18-24 carats quality) and KYC related documents. Once you submit your filled-up application form along with the required documents, the loan amount would be available to you within an hour. This would require just one visit to the bank. IDBI Bank provides door-step service, too.
You can easily track the status of your IDBI Bank Gold Loan. A few simple ways are to contact your loan officer or to visit the nearest local branch in person with your application details. You can also check the status of your gold loan from the convenience of your home by contacting the customer care number of the bank.
IDBI Bank provides gold loans at attractive low interest rates starting at 5.88% per annum. However, the exact interest rate that the bank offers against any individual application may vary. The interest rate will be determined on the basis of two key factors – 1) The gold loan amount that you are applying for 2) The quantity and quality of gold that you will be depositing with the bank or NBFC.
For gold loans in the range of Rs 10,000 to Rs 20 Lakh, the repayment tenure varies from 3 months to a maximum of 12 months. For higher loan amounts, you may negotiate a longer repayment tenure with your lender.
The maximum IDBI Bank gold loan repayment tenure is 2 years. Once this tenure ends, the applicant can renew the loan by paying a loan renewal fee.
Both types have their own advantages. However, if you have spare gold ornaments in your locker or at home, a gold loan may be a better option. As the gold loan is secured, backed by pledged gold, it attracts a lower interest rate when compared to a personal loan, which is unsecured.