Latest gold loan interest rates, processing fee charged by top 24 banks
Mon Sep 23 2024
A gold loan can be obtained quickly and easily with little to no paperwork and a low interest rate. Gold coins and jewelry can be pledged to avail of a gold loan.
What is a Gold Loan?
The IDFC FIRST Bank website states, “A Gold Loan is a loan obtained by the borrower in exchange for gold jewellery (of 18-22 karats) as principal collateral. A Gold Loan is offered when you hand over your gold to a bank in exchange for a particular sum.
How much margin is required to take gold goan?
Margin vary depending on the bank. According to the SBI website, “Margin of 25% is to be maintained for loans repayable by way of EMIs. In case of Bullet Repayment Loan Scheme, margin is 35%. In case of 3 Months Bullet Repayment Gold Loan and 6 Months Bullet Repayment Gold Loan, margin is 30%.”
Charges depend on the bank, for example SBI does not charge, loans can be closed at any point of time without any foreclosure charges. HDFC Bank charges 1% on principal outstanding + applicable tax on premature closure charges (Full or Part payment). Axis Bank charges 2% for closure less than 6 months. For closure after 6 months banks will not charge for foreclosure.
Gold loan interest rates differ from bank to bank. It's important to keep in
mind that many banks charge a processing fee for issuing gold loans. Below is a
list of the range of interest rates offered by various banks for gold loans.
Source: https://economictimes.indiatimes.com