Gold loans: Compare who offers best interest rate - SBI vs HDFC Bank vs ICICI Bank vs BoB
Unlike other form of loans, gold loans come with a guarantee for banks.
Gold has captured Indian hearts like no other investment option. There is just immense demand for this metal in the form of jewelry, coins and bars. Notably, gold has turned out to be among the best ways for raising quick, short-term capital or assistance for financial needs of customers. Considering the importance of gold, banks and other financial institution also offer various benefits and low interest rates for availing gold loans. There are many reasons why a citizen opts for gold loan such as quick loan disbursal with fewer documentations, convenience during an emergency, less formalities, flexible and easily availed. Unlike other forms of loans, gold loans come with a guarantee for banks. Any citizen can avail a loan against gold.
If you are planning to avail a gold loan, then it is always advisable to compare interest rates being offered by banks, which will in turn help in generating cheaper EMIs.
State Bank of India:
With SBI, one is eligible for a gold loan at 18 years of age. SBI levies an interest rate of 10.55% on gold loans. The largest public sector bank offers its customers a minimum amount of Rs 20,000 and a maximum of Rs 20,00 lakhs as gold loan. The repayment period is maximum of 36 months according to SBI. The bank charges a processing fee which is 0.50% of the loan amount+GST.
This private bank benefits its customers with gold loans starting from Rs 25,000. However, in the rural sector, the loan starts from the minimum amount of Rs 10,000. HDFC Bank charges its customers an interest rate of an average of 11.69%. The processing fee that one has to pay to avail the gold loan from HDFC Bank is 1.5% of the loan amount + GST. It also imposes valuation fees of Rs 250 for loans up to Rs 1.5 lakhs and Rs 500 for loans above the said amount. The repayment period is maximum of 48 months according to HDFC Bank.
ICICI Bank levies 11% interest rate on their gold loans, wherein the minimum loan amount that ICICI offers to its customers is Rs 10,000, going up to Rs 15 lakhs. The bank charges 1% of the loan amount+GST as its processing charges and has a loan repayment tenure of maximum 12 months.
Bank of Baroda:
This bank gives out a minimum of Rs 25,000 and a maximum of Rs 10 lakhs as the amount for gold loans. BOB imposes an interest rate of 12.60% and has a loan tenure ranging between 12 months to 5 years, depending on the gold loan scheme the customer has applied for. The bank charges 0.50% of the loan amount+GST as the processing fee for the gold loan.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.