Looking for a gold loan? Check out the cheapest interest rates banks and NBFCs are offering

By: |
March 26, 2021 10:34 AM

High availability of household gold, relatively lower interest rates, and quick and hassle-free disbursal make gold loans one of the most popular financing facilities in our country.

We expect MUTH to deliver ~15% loan growth over the medium term. With an AA+ rating, the cost of funds is likely to decline in the coming quarters.We expect MUTH to deliver ~15% loan growth over the medium term. With an AA+ rating, the cost of funds is likely to decline in the coming quarters.

If you’re planning to take a gold loan for non-agricultural purposes, you might want to finalise your decision in a few days. In August last year, the Reserve Bank of India had announced to increase the maximum loan to value (LTV) ratio for gold loans from 75% to 90% to help borrowers secure a higher loan amount on the same amount of pledged gold in a bid to support the common people’s financing requirements during the Covid-19 crisis. That relaxation, however, is valid until March 31, 2021, so you have little time to lose if you want to avail of the facility.

High availability of household gold, relatively lower interest rates than unsecured loans like a personal loan, quick and hassle-free disbursal and lesser reliance on the borrower’s credit score make gold loans one of the most popular financing facilities in our country. These loans could help in the fulfilment of our critical life goals but also come to our rescue during a financial emergency, according to BankBazaar.

That being said, before applying for a gold loan, ensure the loan amount sanctioned would be enough to meet your financing requirement, compare your options across various lenders to find a deal with the best repayment terms and have a thorough repayment plan to avoid additional penalties and the potential loss of a precious asset.

In order to help you make informed decisions, we have compiled a list of gold loan interest rates currently being offered by some of the leading banks and non-banking financial companies (NBFC) — including SBI, HDFC Bank, Punjab & Sind Bank, BoI, PNB and Muthoot Finance — in our country. We have also provided indicative EMIs for Rs 5 lakh gold loans taken for a tenure of 3 years by each of the lenders mentioned in the table below.

Do note, we have only considered the lowest advertised gold loan interest rates for each of the lenders, have not included processing fee or any other charges for EMI calculation, and the rates applicable to you could be different 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 5 lakh Gold Loans With 3-year Tenures

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 respective bank’s website as on March 23, 2021. The lowest rate offered by the banks/NBFCs have been considered in the table. The EMI is calculated on the basis of interest rates mentioned in the table for Rs 5 lakh loan with a tenure of 3 years (processing fee and other charges are assumed to be zero for EMI calculation). *IRR for Qtr October to December, 2020. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Digital Consumer Credit: Technology brings banking at the fingertips of customers
2Gratuity rules for government employees under NPS – Check details
35 surprising things that turn your cashless health insurance into an out-of-pocket nightmare