If you’re looking for a gold loan, here are the current offers by some of the leading banks and NBFCs in the country.High availability of loan collateral (household gold ornaments and coins), competitive interest rates that are often lower than a personal loan and the possibility of a quick and hassle-free loan disbursal make gold loans one of the most preferred financing facilities in the country. These secured loans could not just come to the rescue of the cash-strapped during an emergency but also help fulfil his/her financial goals.
Gold loans are also often the first choice of borrowers who have an average-to-low credit score as that leads to higher personal loan charges at best or the personal loan application rejection at worst.
That being said, before applying for a gold loan, ensure the value of your pledged collateral would be enough to meet your financing requirements. Lenders usually lend up to 75% of the pledged gold’s market value in gold loans. Meaning, if the applicable market value of your gold is Rs 1 lakh, a lender wouldn’t lend more than Rs 75,000 against it. Borrowers would also be well-advised to compare their options online across various banks and NBFCs to find the deal with the best repayment terms. They should ideally check for interest rates, LTV permissibility, processing fee, prepayment charges (if any) and also the ease of the loan disbursal process, according to BankBazaar.
Most importantly, they should carefully evaluate the affordability of their gold loan EMIs as any laxity in repayments could lead to additional penalties and even potential loss of a precious asset.
So, if you’re looking for a gold loan, here are the current offers by some of the leading banks and NBFCs in the country. We have also provided the indicative EMIs for Rs 1 lakh gold loans taken for 2 years for each of the lenders mentioned in the table below.
Do note, we have only considered the lowest-advertised gold loan interest rate for each of the lenders, have not considered processing fee or any other charges for EMI calculation, and the rates applicable to you could be higher depending on your loan amount, LTV ratio, loan tenure or any other terms and conditions of your chosen lender.
Interest Rates and Indicative EMIs for Rs 1 lakh Gold Loans With a 2-year Tenure
Disclaimer: Interest rates on gold loans for all listed (BSE) public and private banks and selected NBFCs have been considered for data compilation. Banks for which data is not available on their website are not considered. Data collected from the respective websites on August 17, 2021. Lenders have been listed in ascending order on the basis of interest rate i.e. bank/NBFC offering the lowest interest rate on gold loans (for various loan amounts) is placed at the top and highest at the bottom. The lowest advertised rate offered by the lenders has been considered in the table. Indicative EMIs have been calculated on the basis of the interest rate mentioned in the table for Rs 1 lakh gold loan with a tenure of 2 years (processing fee and other charges are assumed to be zero for EMI calculation). *APR for Quarter April to June 2021.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.
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