Gold Loan Interest Rate:
If you want to take a gold loan, then first of all, you should know about its interest rates so that you do not have to pay much interest.
If people suddenly need money, then people take loans by pledging gold or ornaments until the loan amount is repaid.
Till then, the gold remains engaged with the bank. The bank will return the pledged gold to you only after clearing the loan.
Explain that a person can depend on Gold Loan at any time, whether they need funds to expand their business, pay school expenses, cover medical emergencies, or meet agricultural demands.
According to a bank’s website, a gold loan or loan against gold is a secured credit facility that banks and financial institutions provide,
allowing you to pledge your gold jewelery or ornaments against money. The interest rates on the gold loan vary with each bank.
Also, the interest rates must be checked before choosing the bank. Here are ten banks offering the best interest rate on Gold loans. If you are also taking a gold loan, then first of all, check the interest rates.
Check interest rates in the list
| Bank/NBFC | Gold Loan Interest Rate | Processing Fee |
| Central Bank of India | 8.10% to 8.20% | 0.50% of loan amount |
| Federal Bank | 8.99% | — |
| HDFC Bank | 7.60% to 17.05% | 1% of disbursal amount |
| Indian Bank | 7.00% floating | 0.56% of the limit sanctioned |
| Indusind Bank | 8.75% to 17.00% | 1% of loan amount |
| Kotak Mahindra Bank | 8.00% to 17.00% | Upto 2% + GST |
| Punjab & Sind Bank | 8.40% to 8.90% | Rs.500 to 10000 max |
| SBI | 8.30% | 0.50% + GST |
| Uco Bank | 8.50% | Rs.250 to 5000 max |
| Union Bank | 8.2% to 9.30% | — |
Keep these things in mind
Delay or non-payment of your gold loan leads to loss of your gold. It also lowers your credit score significantly.
A gold loan has many benefits, and applying for one is simple, but you must ensure that you repay it in full and on time. Suppose you fail to repay the loan even after several reminders.
In that case, the lender will have to auction your gold to recover or balance the loan loss.
Usually, two weeks before the auction, the lender will inform you about its auction two weeks before the auction date.
