Gold loans are incredibly convenient in contrast to other loans, like home loans, which need a lot of paperwork and a convoluted approval process. A gold loan is secured by gold ornaments or jewellery you may pledge to any bank or lender.
The approval process is short, there is little paperwork, and money is disbursed quickly. Because of this, gold loans are a desirable choice if you want money immediately.
Also read: How to check purity of gold jewellery? Three signs to check for hallmarking
Gold ornaments, including gold coins that banks sell, can be pledged to get a gold loan with little paperwork and a reasonable interest rate.
Gold loan interest rates range from 8.25% to 18%, and tenures vary between 6 to 36 months, depending on the lender.
Here is a look at different banks’ latest gold loan interest rates, as per the bank websites.
| Gold Loan EMI based | 8.65% | 1.25% | 9.90% | |
| 12 Months Bullet Repayment Gold Loan | 8.65% | 0.50% | 9.15% | |
| 3 Months Bullet Repayment Gold Loan | 8.20% | 0.55% | 8.75% | |
| 6 Months Bullet Repayment Gold Loan | 8.55% | 0.35% | 8.90% | |
| Sr | Name Of Scheme | Revised Rate Of Interest |
| 1 | Advance against Gold Jewellery/Gold Ornaments | RLLR+BSP (Presently 9.25%) |
| (Demand Loan) | ||
| 2 | Advance against Sovereign Gold Bonds (Demand Loan) |
For Retail Loans applicable BRLLR is 9.15% w.e.f. 14.02.2023 (Current RBI Repo Rate: 6.50% + MarkUp/Base Spread 2.65%).
| Product | Conditions | Repo Rate + Spread | Effective Rate of Interest | |
| Retail Gold Loan | LA180 (demand loan) | BRLLR+SP | 9.40% | |
| LA241 (EMI) | BRLLR+SP | 9.40% | ||
| OD043 (overdraft) | BRLLR+SP | 9.40% | ||
HDFC Bank gold loan interest rates
| Rates offered to customer during the period of Jan’24- Mar’24* | |||
| Product Group | Bank IRR | ||
| Min | Max | Avg | |
| GOLD LOAN | 9.00% | 17.65% | 11.98% |
| Annual Percentage Rate offered to customer during the period of Jan’24- Mar’24* | |||
| Product Group | Bank APR | ||
| Min | Max | Avg | |
| GOLD LOAN | 9.00% | 17.67% | 11.98% |
ICICI Bank gold loan interest rates
| Minimum | Maximum | Mean |
| 9% | 18.00% | 14.65% |
Axis Bank gold loan interest rates
| Fixed rate loan | 1 Y- MCLR | spread over 1Y mclr | interest rate |
| Gold loan | 9.30% | 7.70% | 17% |
Who can avail gold loan
An Indian Resident between the age of 18 and 75 years is eligible to apply for a Gold Loan. Gold loans are sanctioned against your gold or jewellery holdings.Also read: Gold jewellery cost calculation: How jewellers calculate price of gold jewellery
Repayment options
3 Repayment schemes are available:-
- 1st Bullet Repayment – You can repay your loan through a single Bullet Repayment covering both the principal and interest at the end of the loan tenure.
- 2nd Monthly EMI Repayment – You can repay your loan through monthly EMI.
- 3rd Monthly Interest Repayment – You can repay interest on monthly basis and Principal at the time of maturity.
Appraisal Charges
- Union Bank of India charges, “For Loans up to Rs. 5.00 lakhs:- 0.40 % of the loan amount with a Minimum of Rs 100/- and Maximum of Rs 500/- per case + GST
- Loans above Rs 5.00 lakhs – up to Rs 10.00 lakhs;- Rs 600/- per case + GST
- Loans above Rs 10.00 lakhs- Rs 750/- per case +GST.
