Gold loans have gained significant popularity among individuals seeking quick access to funds by leveraging their gold assets. Choosing the right bank can make a big difference, as plenty of options have competitive rates and flexible terms. This article thoroughly examines the top 10 banks in India that provide gold loans. It offers comprehensive information on interest rates, loan-to-value ratios, and other crucial features, which will help you make an informed decision.
Top 10 Banks for Gold Loans in India Details Overview
Muthoot Finance
Muthoot Finance has established a strong reputation as a trusted and reliable player in the Indian gold loan industry. With a history that spans over 80 years, Muthoot Finance offers a diverse range of options to cater to its customers’ needs.
Gold Loan Schemes:
Muthoot Finance offers various gold loan schemes, including:
- Muthoot One Percent Loan: Small loans at low interest rates
- Muthoot Ultimate Loan (MUL): Maximum loan value and discounts on timely interest payments
- Muthoot Delight Loan: Higher loan amounts with flexible repayment options
- Muthoot Mudra Loan: Special loan scheme for women
- Muthoot Advantage Loan: Competitive per gram and interest rates
- Muthoot High-Value Plus Loan (MHP): Loans curated for the business community
- Muthoot High-Value Loan (MHL): Loans ideal for more extended periods
- Muthoot Big Business Loans: Low interest rates with maximum LTV
- Best Value Scheme (BVS): Exclusive offer for South India Branches
- High-Value Retention (HVR): Exclusive offer for South India Branches
Features and Benefits:
- Easy and hassle-free application process
- Minimum documentation required
- Competitive interest rates
- Flexible repayment options
- Maximum loan amount up to ₹5 crores
- Loan tenure ranging from 3 months to 36 months
- Special schemes for women and the business community
Manappuram Gold Loan
Manappuram Gold Loan is an excellent option for individuals in India looking for trustworthy and effective gold loans. Manappuram Finance Limited has established itself as a leading non-banking financial company (NBFC) in the gold loan market, with a rich history of over 70 years.
Gold Loan Schemes:
Manappuram Gold Loan offers various schemes to cater to diverse customer needs, including:
- Manappuram Gold Loan: Up to 75% loan amount against gold ornaments
- Manappuram Plus: Higher loan amount with flexible repayment options
- Manappuram Super: Maximum loan amount with attractive interest rates
- Manappuram Supreme: A unique scheme for high-value loans
Features and Benefits:
- Competitive interest rates starting from 12% p.a.
- Loan amount ranging from ₹1,000 to ₹1.5 crores
- Loan tenure from 3 months to 12 months
- Easy and hassle-free application process
- Minimum documentation required
- Special schemes for farmers, entrepreneurs, and women
Why Choose Manappuram Gold Loan?
- Trusted brand with 70+ years of experience
- Over 4,500 branches across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Union Gold Loan (Union Bank of India)
Union Gold Loan is a highly appealing scheme offered by Union Bank of India, a renowned public sector bank. This scheme is widely prevalent among individuals in India who are seeking a convenient method to borrow funds against their gold ornaments. It has become increasingly popular because of its user-friendly interface and wide availability.
Features and Benefits:
- Competitive interest rates start at 7% p.a.
- Loan amount ranging from ₹3,000 to ₹10 lakhs
- Loan tenure from 3 months to 12 months
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose Union Gold Loan?
- Trusted brand with a legacy of over 100 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of Union Gold Loan:
- Quick and easy access to funds
- Low interest rate
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
SBI (State Bank of India)
SBI is considered one of India’s top public sector banks. The company provides various financial services, one of which is gold loans. The gold loan scheme offered by SBI is highly favoured by individuals in India looking for a hassle-free method to borrow funds using their gold ornaments as collateral.
Features and Benefits:
- Interest rates start at 8.85% p.a.
- Loan amount ranging from ₹20,000 to ₹50 lakhs
- Loan tenure from 3 months to 3 years
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose SBI Gold Loan?
- Trusted brand with a legacy of over 100 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of SBI Gold Loan:
- Quick and easy access to funds
- Low interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
Kotak Mahindra
Kotak Mahindra Bank is a leading player in India’s private sector banking industry, offering diverse financial services, including gold loans. Many individuals in India find the gold loan scheme provided by Kotak Mahindra Bank to be a convenient option for accessing funds by using their gold ornaments as collateral.
Features and Benefits:
- Interest rates starting at 9% p.a. onwards
- Loan amount ranging from ₹20,000 to ₹1.5 crores
- Loan tenure from 3 months to 4 years
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose Kotak Mahindra Gold Loan?
- Trusted brand with a legacy of over 100 years
- Vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of Kotak Mahindra Gold Loan:
- Quick and easy access to funds
- Low interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
ICICI Bank
ICICI Bank is a renowned private sector bank in India that provides various financial services, including gold loans. Many individuals in India regard this bank’s gold loan scheme as a convenient option for borrowing funds against their gold ornaments.
Features and Benefits:
- Loan amount ranging from ₹50,000 to ₹1 crore
- Loan tenure from 6 months to 12 months
- Interest rates starting at 9% p.a.
- Processing Fees: Up to 2% of the loan amount plus applicable taxes
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose ICICI Bank Gold Loan?
- Trusted brand with a legacy of over 100 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of ICICI Bank Gold Loan:
- Quick and easy access to funds
- Low interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
HDFC Bank
HDFC Bank is a reputable private sector bank in India that offers various financial services, including gold loans. The gold loan scheme that HDFC Bank provides is highly sought after by many individuals in India who are eager to secure funds using their gold ornaments as collateral.
Features and Benefits:
- Loan amount ranging from ₹20,000 to ₹1,50,00,000
- Loan tenure from 3 months to 4 years
- Interest rates starting at 8% p.a.
- Processing Fees: Up to 2% of the loan amount plus applicable taxes
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose HDFC Bank Gold Loan?
- Trusted brand with a legacy of over 45 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of HDFC Bank Gold Loan:
- Quick and easy access to funds
- Lower interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
Axis Bank
Axis Bank is a renowned private sector bank in India that offers various financial services, including gold loans. Many individuals in India want to access funds using their gold ornaments as collateral to favour Axis Bank’s gold loan scheme.
Features and Benefits:
- Loan amount: The maximum amount for an Axis Bank gold loan has not been publicly disclosed
- Loan tenure: 6 to 36 months
- Interest rates: 9.30% or 17%
- Processing Fees: Up to 2% of the loan amount, plus applicable taxes
- Easy and hassle-free application process
- Minimum documentation required
- No prepayment charges
- Special schemes for farmers, entrepreneurs, and women
Why Choose Axis Bank Gold Loan?
- Trusted brand with a legacy of over 75 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of Axis Bank Gold Loan:
- Quick and easy access to funds
- Lower interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
Central Bank
The Central Bank of India is a reputable public sector bank providing diverse financial services, including gold loans. Many individuals in India highly regard the gold loan scheme offered by the Central Bank of India as a convenient option for obtaining funds. It allows them to use their gold ornaments as collateral, making the process even more accessible.
Features and Benefits:
- Loan amount: The maximum amount for a Central Bank gold loan is Rs. 40,00,000
- Loan tenure: 20 years
- Interest rates: 8.45% to 8.55%
- Processing Fees: 0.50% of the loan amount, plus applicable taxes
- Easy and hassle-free application process
- Minimum documentation required
- Special schemes for farmers, entrepreneurs, and women
Why Choose Central Bank of India Gold Loan?
- Trusted brand with a legacy of over 100 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for specific customer segments
Benefits of Central Bank of India Gold Loan:
- Quick and easy access to funds
- Lower interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
Federal Bank
Federal Bank is a prominent private sector bank in India that provides various financial services, including gold loans. The gold loan scheme offered by the Federal Bank is highly sought after by individuals in India who are looking for a convenient way to access funds using their gold ornaments as collateral.
Features and Benefits:
- Loan amount: The minimum amount for a gold loan from Federal Bank is Rs. 3,000, and the maximum amount is Rs. 150 Lakhs
- Loan tenure: The maximum tenure for gold loans from Federal Bank is 40 years
- Interest rates: Interest rates vary, so consult Federal Bank for details
- Processing Fees: Minimal paperwork and quick disbursement
- Alternate locker facility with free insurance coverage for gold ornaments
- Higher per-gram rates for gold
Why Choose Federal Bank Gold Loan?
- Trusted brand with a legacy of over 70 years
- A vast network of branches and ATMs across India
- Expert appraisal process for accurate gold valuation
- Flexible repayment options
- Attractive interest rates
- Special schemes for farmers, entrepreneurs, and women
Benefits of Federal Bank Gold Loan:
- Quick and easy access to funds
- Lower interest rates
- Flexible repayment options
- No hidden charges
- Special schemes for specific customer segments
Benefits of Goal Loans
- Quick and easy access to funds: Gold loans provide a fast and hassle-free way to access funds, with a streamlined application process and minimal documentation required.
- Lower interest rates: Gold loans offer more affordable rates than other types of loans.
- Flexible repayment options: Gold loans offer flexible repayment options, including EMIs, one-time interest payments and ongoing interest payments.
- Minimal documentation: The documentation process for gold loans is simple and does not require proof of income.
- No credit score check: Gold loans are available to individuals with poor credit histories, as they do not require a credit score check.
- Loan amount flexibility: The loan amount may vary based on the purity of the gold and the lender’s internal regulations.
- Quick disbursal: Gold loans are quickly disbursed, with some lenders offering same-day disbursals.
- Safety of gold: Some lenders also ensure the safety of the gold by insuring it.
Things to Consider Before Taking Gold Loans from Banks in India
Here are some things to consider before taking gold loans in India from banks:
Valuation of Gold: The loan amount is directly proportional to the purity of gold. Usually, lenders require a minimum purity of 18 karats. When evaluating a loan against jewellery, the lender will only consider the value of the gold without considering any gems or stones.
Repayment Options: Different lenders offer different repayment options. Some offer regular equated monthly instalments (EMI), while others provide bullet payments where the lender deducts the interest upfront from the loan amount.
Interest Rates and Charges: Banks often offer interest rates lower than those offered by NBFCs. However, some NBFCs provide greater flexibility in repayment options and the ability to borrow more significant amounts. The processing and valuation fees must also be taken into account.
Loan Tenure: The loan tenure should be kept short. The repayment period for gold loans is usually between three to 12 months.
Type of Lender: For gold loans, avoid unregulated lenders like jewellers or small shops and opt for banks or NBFCs.
Loan Amount: The loan amount is determined based on the current market value of the pledged gold. Borrowers can access higher amounts of money, usually up to 80% of the gold’s value.
Understand The responsibility that comes with a gold loan. If you’re unable to repay the loan, there is a risk of losing the gold. The lender can auction off the gold after several reminders. Being aware of this risk is the first step in being prepared.
Conclusion
Get insights into interest rates and loan features to choose the best banks for gold loans in India for your financial needs. When selecting a bank for a gold loan, finding one that provides the financial flexibility you need, as well as favourable terms and low interest rates, is crucial. These top 10 banks offer a range of gold loans in India, each with advantages to suit various requirements. By carefully comparing these options, you can discover a gold loan suited to your financial needs and goals.
Explore the best banks for gold loans in India!
FAQs
Q. What is a gold loan?
A gold loan is a secured loan option that enables you to utilise your gold as collateral for borrowing funds. The loan amount is determined based on the value of the gold you provide.
Q. How are gold loan interest rates determined?
Interest rates on gold loans are typically determined by the bank’s policies and the value of the gold pledged. However, it’s important to note that market conditions and the borrower’s credit profile can influence the rate.
Q. Can I prepay my gold loan?
Yes, most banks allow prepayment of gold loans. However, check with your bank for any prepayment penalties or conditions that may apply.
