Gold Loans are offered by Public Sector Banks, Private Sector Banks, Gold Finance Companies and NBFCs in the organised sectors. Gold being collatoral security in lieu of loan, Gold Loan product is highly regulated by Reserve Bank of India. A Maximum of 75% of the Gold at prevailing rate is offered as loan and the rate per grams varies from lender to lender. Purity of Gold is assessed by the Gold Asseyar or Professional valuer before the rate per gram or LTV values is ascertained. Hallmarked Jewellery is often considered as 22 Karat Gold. Coins and Bars of upto 50 grams is eligible for a loan and are offered more value than the gold jewellery.
Gold Loan Interest Rates from Top Banks and Gold Loan Finance companies Updated on curr_date:
|Bank / NBFC||Gold Loan Interest Rates||Processing Fees||Interest Repayment Scheme|
|ICICI Bank Gold Loan||10.5 % to 16.5%||Upto 1% of loan amount||Half – Yearly/Yearly|
* Data provided above are indicative and subject to change from time to time.
Gold Loan being an asset backed loan and over the counter loan is chosen as the best alternative loan compared to Personal Loans, Business Loans or any other types of Loans. One of the other strong USP is the interest rate offered by financial institutions are competitive and varies from lender to lenders. Rate of interest starts from 10% p.a to 26% p.a depending on the loan value and tenure. Monthly interests are the most popular form of repayment opted by majority of lending institutions. Borrower can pay months interest and applicable foreclosure fees to close the account and take back the custody of Gold. Part release of pledged jewelry is not available in case of Private and Public Sector Banks. However, mosr of the Gold Finance (NBFC) companies allow part re-payment with part release of jewelry.
ICICI Bank Gold Loan Interest Rate:
ICICI Bank offers Bullet Scheme for Gold Loans serviced by all Gold loan servicing branches within same day on obtaining required document and Gold valuation. Bullet Scheme is offered for a tenure of 6 months or 12 months in which borrower has an obligation of servicing only interest component at the end of tenure along with Principal. One can renew the loan to another 6 or 12 months tenure by paying nominal renewal fees and the interest accumulated for an opted tenure.
Rate of interest starts from 10.5% per annum to 16.5% per annum based on the loan amount. Appropriate processing fees of upto 1% is charged on the loan disbursed amount. Bank does not charge any extra fees towards valuation or stamp duty but the charges are levied at the time of foreclosure prior to expiry of loan tenure and late payments.
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