Home >Money >Personal Finance >SBI personal gold loan interest rates, amount and eligibility explained

State Bank of India (SBI) offers the facility of personal gold loans under which a customer can avail a personal gold loan of up to 20 lakh. According to the SBI, gold loan can be availed from the bank by pledging gold ornaments including gold coins sold by the banks with minimum paperwork and low interest rates. So anyone having gold assets can use them to avail ready cash for meeting any business or personal needs.


All individuals above 18 years are eligible to apply for personal gold loan from SBI. Individuals can apply singly or on a joint basis and should have a steady source of income. You are not required to give proof of income for the loan.

Interest rate

SBI offers an interest rate of 1.25% above the MCLR (marginal cost of funds-based lending rate) for one year personal gold loans. The bank's one-year MCLR stands at 8.5% with effect from 10 April 2019, according to the bank's website. It means an interest rate of 9.75% is applicable for the SBI personal gold loan scheme.

SBI charges 0.50% of the loan amount and minimum 500 (applicable GST on both) as processing fees for the gold loans.

Loan amount

Loan can be availed for a maximum amount of 20 lakh. The minimum amount of loan which can be availed is 20,000.

SBI has different repayment period for various schemes

Gold Loan – The repayment of principal and interest will commence from the month following the month of disbursement.

Liquid Gold Loan – Overdraft account with transaction facility and monthly interest is to be served.

Bullet Repayment Gold Loan – Before the term of the loan or on closure of account.

The maximum repayment of both SBI Gold and Liquid Gold Loan is 36 months, while repayment period for SBI Bullet Repayment Gold Loan is 12 months.

The process of sanctioning the loan and disbursing the amount is very simple. The following documents are required while applying for a gold loan:

-Application form for gold loan with two copies of photographs.

-Proof of identity with proof of Address

-Witness letter in case of illiterate borrowers.

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