Many people are waiting for loans in banks. However, interest rates on personal loans and home loans are high. Banks offer gold loans at lower interest rates, as they are secured loans. Let’s look at the interest rates various banks offer for gold loans.
When a large amount of money is needed for medical expenses, education, or business needs, many people prefer to take personal loans from banks. However, personal loan interest rates are higher than gold loans. This is because other personal loans are unsecured, whereas gold loans are secured with collateral, allowing for lower interest rates and no requirement for a credit score. Interest rates for gold loans vary depending on the bank and loan amount.
A gold loan typically allows for obtaining 65-75% of the value of the gold as a loan, with additional loan processing fees ranging from 0.50% to 1%. The loan processing time is usually quick and involves minimal paperwork.
Gold loan interest rates typically range from 8.25% to 18% for a period of 6 to 36 months, varying by lender. Here are the interest rates for gold loans offered by leading banks:
- State Bank of India:
- 12-month bullet repayment: 8.65% to 9.15%
- 3-month bullet repayment: 8.20% to 8.75%
- 6-month bullet repayment: 8.55% to 8.90%
- Punjab National Bank: 9.25%
- Bank of Baroda: 9.40%
- HDFC Bank: 9% to 17.67% (average 11.98%)
- ICICI Bank: 9% to 18%
- Axis Bank: 9.20% to 17%
Eligibility for a gold loan is open to any Indian citizen aged 18 to 75. Different repayment options are available, including bullet repayment, monthly EMI repayment, and monthly interest payment.
