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Comparison of Different Gold Loan Offers from Different Banks

A gold loan is a secured loan in which borrowers have to pledge their gold futures to meet their personal and business needs. A gold loan is available for a tenure of 1 day to 36 months and can be repaid using various flexible methods such as bullet repayment, EMI scheme and Overdraft scheme. The gold rate in India starts at 9.15% and the maximum gold rate stands at 11.25%.

Here is a comparison of different gold loan offers:

Bank Gold Loan Interest Rates Processing Fee Max Tenure
SBI Gold Loan 9.15% 0.50% of the loan amount  36 months
Muthoot Gold Loan 12.00% 0.25% to 1% of loan amount. 36 months
Manappuram Gold Loan 12.00% Rs. 10 (to be paid at time of settlement) 12 months
HDFC Bank 10.50% Nil* to 1.50% 24 months
IIFL 9.24% Nil 11 months
Yes Bank 11.25% 0.75%, Minimum Rs. 500 36 months
ICICI Bank 10.00% 1% of the loan amount 12 months
Federal Bank 11.75% Nil 12 months
Canara Bank 9.85% 1% of the loan amount 12 months
Andhra Bank 10.70% Nil processing fees 12 months
Axis Bank 9.75% 1% plus GST as applicable 24 months
IndusInd Bank 11.25% Upto 1% of loan amount s 12 months
PNB 10.05% upfront fees of 0.70% of loan amount + taxes 12 months

 

SBI bank: Presently, SBI provides the lowest Gold rate in India at 9.15%. SBI bank also charges a processing fee of 0.50 % of the loan amount. The amount of gold loan offered by SBI bank varies from Rs. 20,000 to Rs. 20 Lakhs depending on the quality of gold futures. If you wish to prepay the gold loan taken from SBI bank you don’t need to pay any prepayment charges. If you want to repay the loan, you can do so by paying the entire principal amount at the end of tenure using the bullet repayment method.

Muthoot Finance Bank: Presently, you can get a gold loan from Muthoot Finance Bank at the gold loan rate of 12%. Bank also charges a processing fee of 0.25% to 1% of the loan amount. You can get a loan amount between the range of Rs.1500 to Rs. 1 Crore. The loan is available for a tenure of 7 days to 36 months, and you don’t have to pay any prepayment charges if you wish to prepay the loan. You can use the EMI scheme and bullet repayment schemes to repay the loan taken from Muthoot bank.

Mannappuram Bank: Mannappuram bank offers a gold loan at an interest rate of 12%. It also charges a processing fee of Rs.10, which is paid at the time of settlement of the gold loan. The gold loan tenure ranges between 1 day to 12 months. There are no prepayment charges in case you want to prepay the loan before the loan tenure. The loan can be repaid using flexible methods such as EMI and bullet repayment schemes.

Canara Bank: Getting a gold loan from Canara Bank can be a good option as Canara Bank offers one of the lowest gold rates in India. You can get a gold loan at an interest rate of 9.85%. However, you have to pay a processing fee of 1% of the loan amount for a tenure of 12 months. Bank charges nil prepayment charges in case of prepayment of the loan. The loan can be repaid by paying the full amount at the end of tenure.

PNB Bank: PNB bank provides gold loans at an interest rate of 10.05%. The processing fees of 0.70% of the loan amount is also charged, along with interest. You can get a gold loan up to Rs. 10 Lakhs for a tenure of 12 months. Also, in the case of prepayment of the loan, you have to pay nil charges. The repayment of the loan can be done using the EMI Scheme, Bullet Repayment Scheme, Overdraft Scheme.

Andhra Bank: The gold rate for Andhra Bank starts at an interest rate of 10.70%. Unlike most of the banks, Andhra bank does not charge any processing fees for getting a gold loan. The loan is available for Rs 10,000 to Rs. 2 Crore for a loan tenure of 3 months to 12 months. There are nil prepayment charges of Andhra bank. Also, the loan can be repaid using the bullet repayment scheme.

Best Bank for getting a gold loan: Presently, SBI bank provides the gold loan at the lowest rate of interest. In terms of processing fees, HDFC Bank, IIFL, Federal Bank are the best banks as they don’t charge any processing fees.

Summary: Comparison of different Gold Loan offers from different Banks

A gold loan is a secured loan in which borrowers have to pledge their gold futures to meet their personal and business needs. A gold loan is available for a tenure of 1 day to 36 months.

SBI bank

  • Provides the gold loan at 9.15%.
  • Charges a processing fee of 0.50 % of the loan amount.
  • Loan amount varies from Rs. 20,000 to Rs. 20 Lakhs.
  • Repay the loan using the bullet repayment method.

Muthoot Finance Bank

  • You can get a gold loan at the gold loan rate of 12%.
  • Bank also charges a processing fee of 0.25% to 1% of the loan amount.
  • You can get a loan amount between the range of Rs.1500 to Rs. 1 Crore.
  • The loan is available for a tenure of 7 days to 36 months.
  • You can use the EMI scheme and bullet repayment schemes to repay the loan

Manappuram Bank 

  • Manappuram bank offers a gold loan at an interest rate of 12%.
  • It also charges a processing fee of Rs.10, which is paid at the time of settlement of the gold loan.
  • The gold loan tenure ranges between 1 day to 12 months.
  • The loan can be repaid using flexible methods such as EMI and bullet repayment schemes.

Canara Bank: 

  • You can get a gold loan at an interest rate of 9.85%.
  • You have to pay a processing fee of 1% of the loan amount for a tenure of 12 months.
  • The loan can be repaid by paying the full amount at the end of tenure.

Andhra Bank

  • The gold rate for Andhra Bank starts at an interest rate of 10.70%.
  • Andhra bank does not charge any processing fees for getting a gold loan.
  • The loan is available for Rs 10,000 to Rs. 2 Crore for a loan tenure of 3 months to 12 months.