Top 10 Gold Loan Providers in India That You Must Check Out

Published On September 19, 2018 | By admin | Finance

Gold loans have emerged as one of the leading funding options for Indians. An average Indian has some amount of gold jewellery, and this is why a loan against gold has become the most preferred way to solve any financial emergencies. What makes gold loan easy and simple? It is the speedy approval and disbursement process, minimal documentation and lenient eligibility criteria.

Here is how you can apply for gold loan online with banks and NBFCs in India:

Here we list the top 10 providers of gold loan in India.

  1. State Bank of India (SBI) Gold Loan

The State Bank of India gold loan is one of the most popular loans against gold jewellery schemes in India. If you are aged 21 years and over, you can apply for this loan. The loan amount is between Rs. 10 thousand and Rs. 20 lakhs. Interest rate begins at 11.5%. There is no prepayment penalty. 30 month repayment period is provided to the borrowers. Loan is available on both hallmarked and non-hallmarked jewellery.

  1. HDFCBank Gold Loan

The Sampoorna Bharosa gold loan scheme by the HDFC bank allows a borrower to avail as less as Rs. 50 thousand. Interest rate begins at 10 percent. The bank also offers special interest rates to women customers and banking customers such as Classic and Imperia. There is 0.50 percent processing fee charged, of the total loan amount. The late/prepayment charges can be up to 1% of the outstanding loan amount.

  1. Manappuram Finance Gold Loan

Interest rate is as low as 10.04% and maximum loan amount is Rs. 1.5 crore under Manappuram gold loan scheme. Tenure is for a year. EMI and bullet repayment scheme is available. Gold purity should be between 18 and 24 carats. Processing charge is Rs. 10.

  1. Axis Bank Gold Loan

If you are between 18 and 75 years of age, then you can take Axis gold loan. The bank offers same-day loan disbursement. The maximum loan amount for new customers is Rs. 4 lakh. For existing account holders, the loan limit is between Rs. 25,001 to Rs. 20 lakhs. Rate of interest is 14.50% onwards. Rs. 500 is the valuation charge. Tenure is between 6 and 36 months and there are no prepayment or part-payment penalties. Late payment charges can be up to 2 percent of the overdue amount.

  1. Muthoot Finance Gold Loan

You can borrow between Rs. 1500 and Rs. 1 crore as Muthoot gold loan. Tenure is a year or up to 36 months. Interest rate is between 12% and 26%. In Muthoot overdraft scheme, loan against gold can be taken for business purpose. The Muthoot Mahila loan on the other hand is a loan for women, against their own gold ornaments.

Muthoot best value loan on gold is accessible for lower and middle-class economy people, while the high value loan is offered to those with high income. The super loan scheme is for borrowers who wish to get discounts on loan repayment on timely basis. However, the rate of interest is higher than that of standard loan schemes.

  1. IDBI Gold Loan

The loan amount is between Rs. 10 thousand and Rs. 5 lakhs. Tenure is up to 24 months. Approval for the loan can be given in as less as 30 minutes. The amount will be transferred to the borrower’s account the same day of the loan approval.

  1. Federal Bank Gold Loan

Gold loan by the Federal Bank is up to Rs. 75 lakhs. The interest rate is between 13% and 13.50%. The repayment tenure is of 12 months. You can repay the loan in instalments or pay a lump sum amount. 22-carat and above gold ornaments are accepted for granting the loan.

  1. ICICI Bank Gold Loan

The loan amount is between Rs. 10,000 and Rs. 15 lakhs. Free security is given to the gold ornaments, which are kept as security with the bank. ICICI gold loan is granted to those between 18-75 years of age. Prepayment fee is 1 percent of the principal outstanding and processing charge is 1 percent of the loan amount.

  1. Central Bank of India Gold Loan

This bank offers demand or overdraft loans against 22-carat and above gold jewellery or gold coins sold by the Central Bank of India itself. The loan amount is between Rs. 10,000 and Rs. 20 lakhs. Tenure is up to 36 months. Processing fee is up to 0.25% of the loan amount. Rate of interest is 11.65% for overdraft facility, and 10.65% for demand facility.

  1. Andhra Bank Gold Loan

The bank allows loan against gold for personal, agricultural, and business purposes. The interest rate for gold loan by Andhra bank is 10.70% onwards. Tenure is between 3 and 12 months. No prepayment and processing charges are applicable. Loan amount is between Rs. 10 thousand and Rs. 2 crore. Gold jewellery and coins, both are acceptable for security.

The above-mentioned banks and NBFCs are some of the reliable providers of loan against gold in India, which you can choose.

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