Cheapest gold loan interest rates and lowest IMEs on 2021 gold loans from major banks


Gold and EMI loan eligibility

Gold loan eligibility is determined by the loan per gram of gold or loan amount, which is determined by the value of the gold pledged (based on the price of gold), the purity of gold and the LTV applied by banks. The price of gold is calculated using the average price of 22 karat gold over the previous 30 days and the loan-to-value provided by your bank. Your EMI Gold Loan is determined by the eligibility of your loan amount, the interest rate provided, and the length of the loan.

By subtracting the principal amount from the total amount owed, you can calculate the interest on the gold loan. An EMI calculator can be used to measure the total amount you will pay at the end of the quarter.

Gold Loan - Bullet Payback Program

Gold Loan – Bullet Payback Program

You must repay all of the principal and interest at the end of the loan period if you are using the bullet repayment form. Yes, you read that right. During the term of the loan, there is no need to pay principal or interest! Once your loan is finished, simply pay the full amount.

Allows you to select a flexible repayment schedule in which you pay the interest on the loan in the form of monthly IMEs and the principal payment in one lump sum at the end of the loan term. Some banks often allow you to pay part of your capital as part of your monthly installments. Suitable for gold loans with a term of less than six months. You won’t have to worry about repaying the principal every month.

Lowest interest rates on gold loans and EMI from major banks

Lowest interest rates on gold loans and EMI from major banks

Lowest interest rates on gold loans and EMI from major banks

Bank Interest rate Lowest NDE by Lakh Maximum duration Eligible loan amount
SBI Gold Loan 7.50% Rs. 3,111 36 months Rs. 50 Lakh
HDFC Bank Gold Loan 9.50% Rs. 4,591 24months Rs. 50 Lakh
BANK ICICI 9.00% Rs. 8,745 12 months Rs. 10 Lakh
Federal Bank 8.50% Rs. 8,722 12 months Rs. 75 Lakh
GNP 8.75% Rs. 8,734 12 months Rs. 10 Lakh
Canara Bank 7.65% Rs. 8,683 12 months Rs. 20 Lakh
Gold loan: what you need to know

Gold loan: what you need to know

State Bank of India, Bandhan Bank and Muthoot Finance all have a maximum term of three years. A loan from Kotak Mahindra Bank will last up to four years. Some lenders charge a percentage of the loan amount as a processing fee. For example, the Punjab National Bank charges 0.75%, or Rs 750, on a loan of Rs 1 lakh.

The interest rate charged by the bank is proportional to the amount of the loan. Therefore, if you need a large loan, be prepared to pay a higher rate of interest.

The maximum amount of the gold loan is determined by the quantity and nature of the gold papers. An appraiser appointed by the bank inspects gold items for consistency and quantity.

The MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR influences the interest rate offered to applicants (Repo Rate Linked Lending Rate). Banks that issue gold loans against the RRLLR are much quicker to notify applicants of RBI repo rate cuts.


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