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:
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:
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 fee and charges, such as the valuation fee, loan foreclosure charges, late repayment charges, and renewal fee, etc., are all spelt out clearly to the borrower. There are no hidden charges.
IDBI bank offers gold loans to address under the following categories:
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.
As the IDBI gold loan is a fully secured loan, 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 take just around an hour after the application is submitted. The valuation and approval process are super quick.
|Employment status||Salaried / self-employed|
|Key requirement||Gold articles / coins / jewellery|
|Gold quality and quantity||18 to 24 carats|
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.|
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|
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
* 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|
IDBI Bank charges the lowest interest rate on 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||Tenure||Processing Fee|
|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||3 Months to 12 Months||1% of the outstanding loan amount the borrower has to pay + applicable taxes or Rs. 1,000 – whichever is higher.|
|Muthoot Gold Loan||Up to Rs 1 Crore||Starts at 9.95% per annum||Rs 2,940 to Rs 3,450||3/6/9/12/24/36 Months|
Rs 999 per 6 months (if the limit is not used over 6 months)
Part release charges of Rs 499 per transaction
If the transaction is through branches, Rs 99 per transaction
|PNB Gold Loan||Rs 20,000 to Rs 10 Lakh||7.95% to 9.00%||Rs 2,940 to Rs 3,450||12 to 18 Months|
0.75% of the loan amount plus GST
Rs 500 to 5,000 including taxes (Documentation Charges
|Canara Bank Gold Loan||Rs 5,000 to Rs 35 Lakh||Rs 5,000 to Rs 35 Lakh||Rs 2,940 to Rs 3,450|
6 to 12 Months
Overdraft: Subject to Annual Review
|0.50% of the Loan Amount |
Minimum of Rs 500; Maximum of Rs 5,000.
|ICICI Bank Gold Loan||Rs 5,000 to Rs 35 Lakh||Starts at 10.00% per annum||Rs 2,940 to Rs 3,450||6 to 12 Months||1.00% of the Loan Amount|
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 fee 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) |
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|
The tollfree numbers for contacting the IDBI Bank customer care are:
Call centre numbers, chargeable for customers, are:
For more information, visit: https://www.idbibank.in/customer-care-centre.aspx#ProductsRelatedSupport
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.
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.