Gold Loans: Most of the time a gold loan is an excellent way to meet your short-term cash needs. Banks and other institutions now do spot assessments and valuations of your gold in order to determine loan eligibility, which is followed by loan disbursement.
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The price of gold surged to a record high of Rs 66,000 per 10 grams this week on account of weak US economic data. It’s a good time, per se, to sell your gold and reallocate your assets. Or even for those who wish to pledge their gold holdings to meet any emergencies. As per BankBazaar data, the lowest interest rate on gold loans is offered by a private bank, followed by seven public sector banks that charge interest rates of under 9.6 percent.
10 banks offering cheapest gold loan interest rate
| BANK / NBFC | GOLD LOAN INTEREST RATE | PROCESSING FEE |
|---|---|---|
| Kotak Mahindra Bank | 8.00% to 24.00% | Upto 2% + GST |
| HDFC Bank | 8.50% to 17.30% | 1% of disbursal amount |
| Central Bank of India | 8.45% to 8.55% | 0.50% of loan amount |
| Uco Bank | 8.50% | Rs.250 to 5000 max |
| Indian Bank | 8.65% to 9.00% | 0.56% of the limit sanctioned |
| Union Bank | 8.65% to 9.90% | |
| SBI | 8.70% | 0.50% + GST |
| Bandhan Bank | 8.75% to 19.25% | 1% + GST |
| Punjab & Sind Bank | 8.85% | Rs.500 to 10000 max |
| Federal Bank | 8.99% |
At Axis Bank, you can get Rs 25,0001 to Rs 25 lakh. In SBI, the gold loan minimum Rs. 20,000 to maximum Rs. 50 lakhs. PNB offers a minimum amount is Rs 25000 and maximum of Rs 25 lakh. Canara Bank offers minimum amount of Rs. 5,000 and maximum amount is Rs 35 Lakh.
What documents are required to apply for a Gold Loan?
The list of documents required if you wish to apply for a Loan against Gold with HDFC Bank are:
One Passport Size Photograph
PAN (Permanent Account Number) Card (together with any of the below
mentioned documents) or Form 60
Passport (Not expired)
Driving license (Not expired)
Voters’ ID Card
Aadhaar Card issued by UIDAI
Agri Allied Occupation Documentation( in case of bullet repayment for agriculture customers)