Many options for loans are available today, providing low-interest rates to customers. However, selecting the best gold loan bank in India can sometimes be complicated. That’s why to make things simple, we’ve curated the top 7 best gold loan banks in India after thorough research. Read through this article as we introduce you to the details of applying for a loan, interest rate, and loan repaying process. At the end of the article, we have answered some of the commonly asked questions about loans in India.
Top 7 Best Gold Loan Bank in India
In this article
We have prepared the below list after various rounds of researches and interacting with agents of each bank. By the end of this article, we hope you will easily make your perfect choice for a gold loan in India.
1. HDFC Bank Gold Loan
The first on the list for best gold loan banks in India is the HDFC gold loan or the ‘Sampoorna Bharosa Gold Loan.’ It is an instant loan that helps you stay worried free when you are short of cash. You can receive this loan in just about 45 minutes by submitting basic mandatory documents.
HDFC Gold Loan – Offerings & Features
1. Interest Rates
It is offered at a competitive interest rate of 9.9% on EMI based loans, Term Loan, and Overdraft. You can repay your loan in easy lower EMIs, throughout your choice.
2. Tenure
It is available for three months up to 24 months.
3. Loan Amount
You can apply for loans starting at ₹ 25,000 (Minimum loan amount of ₹ 10000/- available in rural markets)
HDFC Gold Loan: Fees
Documents Required
- Voters’ ID Card
- Aadhaar Card
- PAN or Form 60
- One Passport Size Photograph
- In the case of bullet repayment for agriculture customers – Agri-Allied Occupation Documentation is required.
HDFC Gold Loan Calculator
HDFC Gold Loan Calculator
You can get a loan depending upon the weight of the gold, Purity, and gold price of your jewelry. This is calculated under three categories –
1. Weight & Purity Of Gold Used In Jewelry
The bank uses its in-house valuer to calculate the net weight of the gold and evaluate the Purity.
2. Price Of Gold
After the weight and Purity are evaluated, it is multiplied by the value of gold.
3. Loan To Value Ratio
After the value is calculated, an LTV of up to 75% is applied to calculate your loan amount eligibility.
The table below will give you an approximate estimation of the loan per gram offered by HDFC Bank -\
How To Repay HDFC Gold Loan
Using any of the options provided, you can repay your HDFC gold loan.
Phone Banking: You can call the customer support and request to receive a loan repayment link. Following the instructions on the phone, you can quickly repay the loan.
Net Banking: Following the steps, you can repay your loan online –
- Step 1: Visit the HDFC website.
- Step 2: Click on ‘pay.’
- Step 3: Select loan repayment
- Step 4: Click pay online.
- Step 5: Click, ‘I agree.’
- Step 6: Click on ‘Pay’ to proceed.
- Once you have made the payments, you will receive an online receipt and SMS confirmation.
How To Foreclose HDFC Gold Loan
Bullet Repayment Loan Repayment Method – (Paying both principal amount and interest amount at the end of the tenure) – Your loan account will close only after you have made the total payment.
Alternate repayment methods – You can close your loan account after three months from the date of loan sanction.
Note: You need to pay foreclosure charges of 2% + GST, in case foreclose within 3 months. Zero charges are levied if you close the loan account after 3 months.
2. ICICI Bank Gold Loan
Next on our list of best gold loan banks in India is the ICICI bank that offers gold loans against gold jewelry through an easy process. The funds received can be utilized for your children’s education, medical emergency, business, for a down payment for the purchase of property or automobile, holiday, agriculture needs, etc.
Features & Offerings
- Quick loan sanction and disbursal
- In the case of agriculture loans up to Rs.25,000, penal interest is not applicable
- You can repay the loan at the end of the loan tenure
Eligibility
- You must be between 18 years to 70 years of age.
- You can deposit both or either gold jewelry and gold coins.
- The deposited gold must of 18 carats. In case you are depositing gold coins, it must be of 24 carats.
Documents Required
Copy of the following documents are required –
- Registered lease agreement (not older than three months)
- Proof of landholding in case of agriculture loan of >1 lakh
- Pan Card
- Form 60/61
- Passport Copy
- Driving License
- Voter ID Card/ Aadhaar Card/ Ration Card
- 2 Passport-size photographs
How To Foreclose ICICI Bank Gold Loan Account
ICICI Bank gold loan account can be closed by paying the full amount and interest. You can foreclose the account bearing the following charges.
3. SBI Bank Gold Loan
You can avail of an SBI gold loan for a marriage, financial emergencies, business purposes, and children’s education. It does not just offer a host of benefits with the gold loan; the gold loan interest rates in SBI are also low.
SBI Bank Agricultural Gold Loans
The interest rate on SBI agricultural gold loans is much lower than in the regular gold loan scheme. SBI bank offers Agricultural Gold Loans scheme for farmers in which loan is provided to them to meet farming expenses.
Documents Required
- Proof of farming activity
- Ownership proof of agriculture land is mandatory
- Documented record of the end-use of gold loan
SBI Bank Gold Loan Scheme
SBI bank offers three types of gold loan plans including –
- Realty Gold loan: For SBI housing loan customers.
- Multi-Purpose Gold Loan: For those engaged in agriculture activities, helping them repay loans.
- Gold Loan: Anyone (single or jointly) can avail of this plan against their gold.
SBI Gold Loan: Offerings & Features
1. Interest Rate
Documents Requirement
- ID Proof
- Address proof
- Income Proof and CIBIL score (not required)
SBI Gold Loan Interest Rate Calculator
SBI offer gold loan at an Interest Rate of 7.50%. To calculate interest on the gold loan, three things are considered – The loan amount, loan tenure, and loan required.
Loan Amount: The loan amount depends upon the weight of the gold jewelry. The loan amount can be between ₹ 20,000 and ₹ 20 Lakh amount.
Relationship with the Bank: If you are an existing customer, SBI will offer special rates considering your past relationship with the bank.
Loan Tenure: Unlike other banks, SBI offers a gold loan with a tenure of 3 months to 36 months.
How To Repay SBI Bank Gold Loan
Borrowers can repay loans at the branch office via cash or by debit/credit. Repayment policy differ as per the type of loan –
- Gold Loan: The repayment cycle will begin to post the loan disbursement date.
- Bullet Repayment Gold Loan: In this loan, repayment can be made either before or at the end of tenure.
- Liquid Gold Loan: In this loan, the borrower has to pay interest (per month) until the tenure completes.
How To Foreclose SBI Gold Loan
You can close your loan account by making full payment. You can do so by visiting any of the SBI branches. However, you can take back the gold ornaments from the branch that sanctioned the loan.
4. Canara Bank Gold Loan
Canara Bank offers a gold loan under the ‘Swarna Loan’ scheme, which can be availed to meet any financial emergencies. The gold is deposited under the gold loan scheme under a temporary contingency plan and is returned to repay a loan.
Canara Bank Gold Loan -Offerings & Features
1. Competitive Interest Rates – Gold loan interest rate in Canara bank is of 7.65%
2. Multipurpose Use– This gold loan can be used to meet financial emergencies, personal or professional.
3. High Loan Amount – Offered between Rs.10 000 and Rs.10 lakh
4. Low Processing Fee – A low processing fee of just 1% is charged on the loan amount.
5. No Guarantor Needed – Easing the loan process, this scheme eliminates the need for a guarantor.
6. Immediate Assistance – Any time support is available from the bank. You can visit the bank branch or call the customer support helpline number.
7. Flexible Repayment – Borrowers can repay the loan within one year, with interest payable only on maturity.
Eligibility
- You must be salaried/self-employed with a regular source of income.
- You must have an existing Savings Bank accounts with Canara Bank.
Note: In case you do not hold an account with the bank, you need to be introduced by a trusted Canara Bank account holder.
Documents Required
- Certificate from jeweler mentioning the quality of gold.
- Valid government approved ID/address proof
- Duly filled and signed the application form
- Form 16 or Salary certificate from the employer
5. Indian Bank Gold Loan
Indian Bank gold loan is offered under the ‘Jewel Loan’ Scheme. Indian Bank provides finance against gold as security. The gold loan interest rate in Indian Bank is 8.50% on the total loan amount.
Jewel Loan Scheme (For the Non-Priority)
To help customers meet short term finance requirements, Jewel Loan Scheme is offered to the customers from the non-priority sector against gold jewelry and ornaments as a temporary deposit.
Indian Bank Gold Loan- Offerings & Features
- Any Indian can apply for an Indian Bank gold loan
- The gold loan is granted against gold jewelry and ornaments
- The loan amount is determined as per the net weight of gold. The rate per gram is fixed as 70% of the market value or periodically, whichever is lower.
- The processing fee of 0.56% of the loan amount is charged to the customer.
- You can instantly open an account with a minimum of an account balance of Rs.500.
6. KDCC Bank Gold Loan
Headquarters the Andhra Pradesh, KDCC Bank is a trusted name in the southern part of India. It offers gold loans against gold deposits to help during financial needs. KDCC offers instant gold loans to the submission of primary documents. Below table give you complete detail of the fees charged on agricultural and non- agricultural gold loan.
Fees
7. Bank of Baroda Gold Loan
Bank of Baroda gold loan is offered to people under both priority and non-priority sectors category.
Bank of Baroda Gold Loan – Offerings & Features
- Gold Loan is granted against minimum 18-carat Purity of gold
- Offers zero pre-payment charges
- Offer zero processing charges
Eligibility
- You must be a resident
- You must have a savings account in the Bank of Baroda
- You can be salaried individuals, business owners, or joint borrowers
Documents Required
- Loan application form
- One passport size photograph
- ID and Address Proof
Use of Loan Funds
- The loan is open for Micro, Small, and Medium Enterprises, students opting for vocational courses
- The loan funds can be used for school activities, health care facilities, and sanitation facilities
- For solar or biomass-based power generators and windmills
How to Repay Bank of Baroda Gold Loan
You can repay either at the end of the tenor or between the term under an EMI plan.
How to Foreclose Baroda Gold Loan
If you wish to close your loan account, before the tenure ends, you can pay the total amount in one shot.
8. Federal Bank Gold Loan
Federal Bank gold loans are offered under four categories
- Gold loan to women
- Funds against gold
- Apna gold 24 x 7
- Goldline
Federal Bank – Interest Rates on Gold Loans
Federal Bank – Offerings & Features
- Offers hassle-free instant loan
- Offers low rates of interest
- Convenient repayment of a loan under the flexible tenure
- Security of the loan will be on 22-carat gold ornaments
Documents Required
- For existing Federal Bank Customer: No documents are needed
- For new customers –
- ID proof
- Recent passport size photos
- Copy of address proof
Diva Gold Loan – Introduced for Women Only
- Any women can avail of the loan
- Lower interest rate – 13.40% (Base Rate + 3.2%)
- No processing fee
- Quick processing
- A loan can be availed up to Rs.100 Lakh
- Available under 6 Months – 12 Months tenure
- You can make full repayment before tenure ends
- The loan amount can be used to meet personal financial emergencies
FAQs
Q: What is the age criteria to apply for a gold loan?
A: 21 – 65 years
Q: What is the maximum loan amount I can get?
A: You can avail up to 75% of the market value of the gold.
Q: What kind of gold items are accepted as security?
Between 18 to 24 carats gold ornaments are accepted. You cannot take a loan against exchange-traded funds, ladies mangal sutra, and gold bars.
Q: How much processing fee is applicable?
A: A processing fee of 1.50% of the loan amount is applicable.
Q: How long does the bank take sanction gold loan?
A: Gold loans are disbursed within 24 hours.
Q: How can I repay my gold loan?
A: You can repay via cash, cheque, and DD.
Q: What happens if I miss paying the dues?
A: Yes, you will be charged a penal interest at the rate of 6% per annum, over and above the normal rate of interest.
Q: How much gold loan can I ask for from SBI?
A: Up to Rs.20 lakh.
Q: How can I check the status of my loan?
A: You can check the status of your gold loan via the bank website. Simply log in using the details received at the time of loan processing. The loan approval for a gold loan is usually done within 24 hours.
Q: Can I apply for an SBI gold loan online?
A: Yes, if you have a bank account with SBI, you can instantly apply for a gold loan. In case you do not hold an SBI account, you need to go through the process of submitting documents. All of this can also be done online.
Q: What kind of security can be submitted to avail of the gold loan?
A: Security in the form of gold ornaments and gold coins are accepted.
Q: Can one avail gold loan from any of the Canara Bank branches?
A: No, the service for gold loan is available only at selective Canara Bank Branches
Q: If I do not have an account with Canara Bank, can I still apply for a gold loan?
A: If you do not hold an account, you will have to open a new one with Canara Bank at the time of applying for a gold loan. No, individuals who do not account with Canara Bank can apply for this loan after opening an account.
Q: How long does it take for my gold loan to get approved?
A: Depending upon the loan amount and time taken to verify gold, gold loans are generally granted within 24 hours.
Q: What is the repayment tenure?
A: The total amount must be repaid within a year.
Numerous financial institutions provide the facility of gold loans. It can be a bit confusing to choose a good lender. The blog has mentioned a few lenders, along with the loan amount, tenure, interest rates, and other charges of each lender. The blog contains all information regarding the documents required, the loan amount calculator, and repayment methods. However, you should also conduct your own research and look up similar articles to learn more about the lender or identify great offers.