Gold Loan Interest Rates 20201149 views
- What are those parameters that make the Best Gold Loans in India?
- Know about all such parameters and the lenders that tick all such boxes!
We Indians are very emotional about gold and tend to buy this yellow metal frequently so that we can make adequate jewellery for events like marriage. But the emergency can also strike anytime. Although there are numerous loan options we can look up to overcome emergencies, it’s the gold loan that stands apart because of its easy availability and less formalities. All you need is to submit gold ornaments and get a loan against the same. But when it comes to choosing the best gold loans, you also need to consider the interest rate and loan amount. And if all that is backed with flexibility in repayment, it makes the loan offer even more appealing. Let’s check out all these parameters in detail before focusing on lenders that stay true to these yardsticks.
Table of Contents
- 1 Let’s Check the Parameters
- 2 Lenders who provide Best Gold Loans in India
Let’s Check the Parameters
The first and foremost thing in any kind of loan in the Interest Rate priced by the lender. This directly affects your repayment; higher the interest rates will be, higher will be the repayment amount and vice versa. So, the task is cut out for you – choose the loan that comes at the lowest rate. Gold Loan Interest rates, which vary from one lender to another, range from 9% to 20% per annum. On average, it could be 11% to 16% per annum which is quite low as compared to other secured loans. Also, if your existing relationship with the lender is good, you can get much lower interest rates due to your past history.
Other than interest rates, a lot of people ask this question: what is the maximum loan amount I can get via a Gold Loan? And it is important to ask this question so that you could know if a lender would be able to provide you the required loan amount. The lender will have a maximum ceiling when it comes to the loan amount and it varies from one lender to another.
You should keep in mind that the loan amount will always depend on the overall value of your gold. Apart from the maximum loan amount criteria, you must look at the loan to value ratio that a lender provides. It usually ranges from 65% to 90% of your overall gold value.
Let’s understand through this with an example. Suppose that your overall gold value is INR 10 lakh, then you could only get the loan amount ranging from INR 6.5 lakh to a maximum of INR 9 lakh. So before choosing the best gold loans in India, you should look up which lender can give you the maximum loan to your overall gold value. The best gold loan lenders in India provide the maximum loan to value ratio.
Repayment Tenure and Methods
Among all the parameters, repayment is one of the most crucial parameters that you can’t ignore. The repayment tenure of a gold loan generally ranges from 12 to 36 months within which you can simply repay the loan amount with the help of several flexible repayment options. Choose the tenure according to your repayment capacity, otherwise, you may face difficulty in repaying the loan amount.
Coming to the gold loan repayment options, the right word for it would be flexible. The lenders who provide the best gold loans in India give you more than one repayment option from which you can choose according to your convenience. We are providing you the details of all these loans below.
|EMI Payment||You will have to pay a part of your principal and Interest amount in the form of Equated Monthly Installments within the tenure|
|Upfront Interest Payment||You can pay the total interest payment at the start of your tenure and principal amount at the end of tenure|
|Interest Payment at Regular Intervals||You can choose the option to pay the Interest amount at regular intervals - Monthly/ Quarterly/ Semi-yearly/ Yearly and pay the total principal amount at the end of tenure only|
|Bullet Repayment||You can repay the total principal and interest amount at the end of tenure only through this method. However, the interest will keep accumulating at fixed intervals.|
The Purity of Gold
As this loan can only be obtained against your gold, the purity of your gold matters the most. It is also an important parameter that separates the best gold loans in India and others. Before applying for a gold loan, you must check what is the gold purity criteria of different lenders. Some lenders do not accept gold anything below 18 carats while for some it is below 22 carats. It varies from one lender to another. You must also know this fact that the purity of your gold affects the eventual loan amount.
Convenience and Disbursal Process
In the times we are living in, everybody wants everything quickly. This is the same in the case of gold loans. Every individual wants a convenient loan process in which they have to provide minimum documents and the loan can be approved in a hassle-free manner. The best gold loans in India must have this quality, otherwise, people won’t apply. Some lenders even provide doorstep gold loan services to make the overall process easy and comfortable for customers.
The disbursal time also matters when an individual wants to apply for the loan as he/she would prefer a lender who can disburse the loan amount quickly in the bank account. So while looking for the best loans in India, always choose the lender which can give you the loan amount in the shortest time possible.
Lenders who provide Best Gold Loans in India
After knowing the parameters, let’s check out the lenders that stay true to the same. We will tell you about all such banks and financial institutions that are known to provide the best gold loans in India. The information about each of them is given below. Do check them!
State Bank of India (SBI) Gold Loan
When we talk about the best gold loans in India, it is simply impossible to not mention the name of State Bank of India (SBI). Coming from the largest lender of our country, Gold Loan is one of the most preferred products from its wide range of banking services. Anyone who is above 18 years of age and in need of urgent money can opt for this loan scheme. It perfectly fits all the criteria for the best gold loans such as the high loan amount upto INR 20 lakh, tenure ranging from 12 to 36 months, and three repayment methods from which you can choose according to your convenience.
For your convenience, we have put the SBI Gold Loan details in the table below. Do check them!
|Minimum Loan Amount||INR 20,000|
|Maximum Loan Amount||INR 20 lakh|
|Tenure||12 to 36 months|
|Processing Fees||0.50% of the Total Loan Amount plus GST charges|
|Margin||25% to 35%|
|Repayment Methods||EMI Payment|
Monthly Interest Payment
Muthoot Finance Gold Loan
With the help of Muthoot Finance Gold Loan, you can choose the scheme according to your loan requirements. There are a total of five different gold loan schemes from which you can pick one for you – Blue Guide, Blue Bright, Blue Power, Blue Big, and Blue Smart Gold Loans. All these schemes have different interest rates and tenure periods. Coming to the Muthoot Finance Gold Loan interest rates, they start from 15% per annum.
You can opt for a loan amount as low as INR 5,000 and the maximum amount will depend on the scheme you are picking. We are providing some other details in the table given below. Have a look!
|Minimum Loan Amount||INR 5,000|
|Maximum Loan Amount||Above INR 8 lakh|
|Interest Rate||12.00% - 27.00%|
|Tenure||3 to 36 months (Changes according to the scheme)|
|Processing Fees||Customized according to the Scheme you’re choosing|
|Repayment Methods||EMI Payment|
Monthly Interest Payment
Manappuram Gold Loan Scheme
Manappuram Finance is one of the leading and oldest Non-banking financial companies that provide the best gold loans in India. With over more than 70 years of operation in India, Manappuram Finance provides a gold loan that ticks all the boxes to be called a seamless facility for customers like you. First, we would like to talk about the interest rate that ranges from 12% to 29% per annum, at which you can take a maximum loan amount of INR 5 crore.
With processing fees as minimum as INR 10, this is certainly the best gold loan option that you can choose for yourself in the times when you need urgent money. There are some other details which you can check in the table below.
|Minimum Loan Amount||INR 5,000|
|Maximum Loan Amount||INR 1.5 crore|
|Interest Rate||12.00% - 29.00%|
|Tenure||90 to 365 days|
|Processing Fees||INR 10|
|Repayment Method||EMI Payment|
ICICI Bank Gold Loan
Want to get a Gold Loan amount upto INR 15 lakh in just 60 minutes? Well, with the help of ICICI Bank Gold Loan, you can get this as long as all your details and documents are verified successfully by the bank. ICICI Bank is certainly one of the leading private lenders of our country and this gold loan scheme is one of the finest products provided by them. With the flexible repayment tenure of 3 to 12 months, you can easily repay the loan amount.
You can get the required sum of money against your gold ornaments and bank minted gold coins. The jewellery must be above 18 carats. Anything below this will not be accepted by the ICICI Bank for the evaluation and your loan amount will depend on it. For complete details, check out the table below.
|Minimum Loan Amount||INR 10,000|
|Maximum Loan Amount||INR 15 lakh|
|Interest Rate||11.00% Onwards|
|Tenure||3 to 12 months|
|Processing Fees||1% of the Total Loan Amount plus GST charges|
|Repayment Method||Bullet Repayment|
|Application Method||Online, Offline, and Missed Call Method|
HDFC Bank Gold Loan
HDFC Bank is India’s top private lender in the country that provides the fastest turnaround when it comes to the Gold Loan facility in India. You can get the gold loan in as little as 45 minutes by submitting all the documents and gold to the nearest HDFC branch. This time can vary also if the documentation and other processes take time. The loan amount can be as minimum as INR 10,000 if you are living in a rural area and INR 25,000 if you are coming from an urban area.
HDFC Gold Loan interest rates range from 10% to 17.98% per annum and it may change according to your loan amount and existing relationship with the lender. If you want to know about some other details, you can glance at the table below.
|Minimum Loan Amount||INR 25,000|
INR 10,000 in the rural areas
|Maximum Loan Amount||Customized according to the gold value|
|Interest Rate||10.05% - 17.95%|
|Tenure||3 to 24 months|
|Processing Fees||1.50% of the Total Loan Amount plus GST charges|
Overdraft (OD) Facility
So, these are some of the best gold loans in India from which you can choose a suitable one for you. After knowing all the details related to this loan, you must be in a much better position in terms of deciding the right gold loan.