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Going for a gold loan? Check which banks are offering the best rates

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Going for a gold loan? Check which banks are offering the best rates

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The interest rate on gold loans being offered by SBI, Bank of Maharashtra, Indian Bank, among others, vary between 7 and 7.65 percent and the loan amount can even cross Rs 1 crore. 

Going for a gold loan? Check which banks are offering the best rates

In India, gold has always been a friend in distress. The yellow metal as well as gold loans come in handy during cash crunch or financial stress situations.

When an individual applies for a gold loan, banks keep gold jewellery or other gold items as collateral. Gold loans allow individuals to access funds without having to sell their gold. Most banks notify borrowers in case of repeated non-payment of EMIs and eventually, the gold is auctioned off if the borrower defaults.

Here are the banks/NBFCs that are offering the best gold loan rates.

1. Bank of Mahararashtra

  • Bank of Maharashtra offers a gold loan scheme called Maha Gold.
  • Interest Rate: 7 percent per annum
  • Maximum Loan Amount: Rs 5 lakh
  • Minimum Loan Amount: Rs 20,000
  • Processing Fee: Rs 500 to Rs 2000 + GST.
  • Repayment: Maximum repayment period is up to 12 months
  • 2. State Bank of India (SBI)

    • SBI offers two gold loans — SBI personal gold loan and SBI realty gold loan.
    • Interest Rate: 7.50 percent per annum
    • Maximum Loan Amount: Rs 50 lakh
    • Minimum Loan Amount: Rs 20,000
    • Processing Fee: 0.25 percent of the loan amount (minimum of Rs 250) plus applicable GST
    • Repayment: Flexible repayment options of 12 to 36 months
    • 3. Canara Bank

      • Canara Bank offers three categories of gold loan schemes — agricultural gold loan schemes, Swarna gold loan schemes and MSME gold loan schemes.
      • Interest Rate: 7.35 to 7.65 percent per annum
      • Maximum Loan Amount: Rs 35 lakh
      • Minimum Loan Amount: Rs 5,000
      • Processing Fee: 0.50 percent of the loan amount (minimum of Rs 500 and maximum of Rs  5,000 for Swarna Loans and 50 percent of charges applicable to Swarna loans for Swarna Express loans.)
      • Repayment: Flexible repayment options ranging from 6 months to 2 years
      • 4. Punjab & Sind Bank

        • Rate of Interest: 6.80 to 7.5 percent per annum
        • Maximum Loan Amount: Rs 25 lakh
        • Minimum Loan Amount: Rs 1 lakh
        • Processing Fee: Loan for up to Rs 2 lakh: Rs 500 and for loans above Rs 2.00 lakh: 0.50 percent of the amount (a maximum of Rs 10,000)
        • Repayment: Maximum repayment period is up to 12 months.
        • 5. Indian Bank

          • Indian Bank offers gold loan schemes to borrowers from the middle and lower-income groups.
          • Interest Rate: 7 percent per annum
          • Loan Amount: 80-85 percent of the market value of gold jewels pledged or scale of finance / unit cost for approved by DLTC / NABARD (whichever is lower)
          • Processing Fee: For loan of Rs 25,000 to Rs 5 lakh: 0.30 percent of the loan amount (a minimum of Rs 300). For loan of Rs 5 lakh to Rs 1 crore: 0.28 percent of the loan amount (a minimum of Rs 1,500)
          • Repayment: 6 months for Bumper Agri Jewel Loan and 12 Months for other Agri Jewel Loan products.
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