Rate of Interest on a Gold Loan: Due to their lower interest rates and ease of application, gold loans are gaining popularity. Gold loans, in contrast to conventional bank loans, require customers to offer gold as collateral in exchange for cash. The quantity and purity of the offered gold typically determine the loan amount. This kind of loan can be obtained from banks with minimal paperwork and a selection of repayment terms to choose from.
Here is a list of 10 banks with the lowest interest rates for people who want to get a gold loan:
ICICI Bank: 7.20 percent to 11.35 percent, with a one percent processing fee.
Kotak Mahindra Bank: 8% to 17%, with a 2% processing fee and the applicable GST.
Union Bank: Between 8.40 and 9.65 percent.
Central Bank of India: With a processing fee of 0.5 percent of the loan amount, rates range from 8.45 percent to 8.55 percent.
Uco Bank: 8.50 percent, with a processing fee of between 250 and 5,000 rupees.
SBI: 8.55 percent, with a 0.50 percent processing fee and GST.
IndusInd Bank: With a 1% processing fee, the percentages range from 8.75 percent to 16 percent.
Punjab and Sindh Bank: With a processing fee of anywhere from Rs 500 to Rs 10,000, 8.85 percent
Federal Bank: 8.89 percent
Punjab National Bank: 9 percent, with a 0.75 percent processing fee.
A gold loan’s repayment term varies based on the preferences of the customer and the bank’s policies. According to the website of Kotak Mahindra Bank, loan amounts are determined by the purity of the gold provided, with a minimum of Rs 20,000 and a maximum of Rs 1,550,000.
Keep in mind that a PAN card is required for annual incomes of more than Rs 5 lakhs and an ITR is required for amounts above Rs 25 lakh when applying for a gold loan. Getting a gold loan may be difficult without a PAN card.