How to avail gold loan at low-interest rates for various financial needs
Gold loans are a secured loan option offered by banks and NBFCs, where gold jewelry is used as collateral. Interest rates start from 8.88% p.a.
In the current scenario where banks are hiking lending rates, EMIs on personal loans have gotten costlier. In such cases, availing loan against your gold can be quite helpful. Whether it's for marriage, your child's education, medical condition, or raising capital for a new business venture, gold loans are seen as the best option.
What are Gold Loans?
Gold loans are secured loans that can be availed from banks or any financial services provider by pledging your gold as collateral. A secured loan, where gold jewellery is provided as collateral, is a Gold loan. The loan amount that will be provided will depend on the value of the gold. Gold jewellery will need to be given to the lender when you avail of the loan and will be returned only once the entire amount is repaid.
Several banks and Non-Banking Financial Companies (NBFCs) offer gold loans at attractive interest rates. Since collateral is being provided, loans can be availed at low-interest rates.
Top banks, NBFCs providing gold loans in India
Key banks providing loans against gold include Axis Bank, HDFC Bank, and State Bank of India.Some notable NBFC players are IIFL, Muthoot Financial, Mannapuram Finance, and Bajaj Finserv.
Gold loan interest rate
The interest on a gold loan can vary from bank to bank. The loan interest rate also tends to vary based on the tenure of the loan as well as the gold loan amount.
Bajaj Markets, a subsidiary of Bajaj Finserv, in partnership with top lenders, grants access to gold loans with attractive interest rates starting from 8.88% p.a. Depending on the value of gold pledged, one can access a loan amount starting at ₹1,500 with no maximum limit. The tenure of these gold loans is flexible and ranges between 7 days and 3 years.
Bajaj Finserv 9.50% p.a. onwards Up to 12 Months
Indiagold 9.24% p.a. onwards 2 Months - 12 Months
Muthoot Finance 9.96% p.a. onwards 7 Days - 36 Months
Muthoot Fincorp One 9.96% p.a. onwards 3 Months - 12 Months
Rupeek 8.88% p.a. onwards 3 Months - 12 Months
Documents required for gold loans
Two passport-size photographs
A copy of identity proof documents such as your passport, driving license, Aadhar Card, ration card, etc.
A copy of address proof documents such as your electricity bill, telephone bill, other utility bills, etc.
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Business NewsMoneyPersonal FinanceHow to avail gold loan at low-interest rates for various financial needs
First Published:17 Aug 2023, 01:28 PM IST
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