Do you want to take out a gold loan? Check which banks offer the best rates here

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When EMI payments are repeatedly missed, most banks notify the borrowers, and if the borrower continues to default, the gold is eventually auctioned off. The following banks and NBFC offer the best interest rates on gold loans.








Banks keep gold jewelry or other gold items as collateral when someone applies for a gold loan.





Gold has always been a friend in need in India. In times of financial difficulties or shortage of liquidity, gold and yellow metal loans are useful. Banks keep gold jewelry or other gold items as collateral when someone applies for a gold loan. People can get financing through gold loans without having to sell their gold.

When EMI payments are repeatedly missed, most banks notify the borrowers, and if the borrower continues to default, the gold is eventually auctioned off. The following banks and NBFC offer the best interest rates on gold loans.












Bank of Maharashtra

  • Maha Gold Gold Lending System is provided by Bank of Maharashtra.

  • Interest rate: 7.0% per annum

  • Rs 5 lakh is the maximum loan amount.

  • Rs 20,000 is the minimum loan amount.

  • 500 to Rs. 2000 plus GST is the processing fee.

  • Repayment: A maximum repayment period of 12 months is permitted.

State Bank of India (SBI)

  • Two gold loans are available from SBI: the personal gold loan and the home gold loan.

  • 50% annual interest rate

  • Maximum loan amount of Rs 50 lakh

  • Rs 20,000 is the minimum loan amount.

  • Processing fee: 0.25% of loan amount plus applicable GST (minimum Rs 250).

  • Flexible repayment terms of 12 to 36 months are available.












Canara Bank

  • Agricultural Gold Loan Programs, Swarna Gold Loan Programs and MSME Gold Loan Programs are the three categories of gold loan programs offered by Canara Bank.

  • Interest rates vary from 7.35 to 7.65% per annum.

  • 35 lakhs is the maximum loan amount.

  • Rs 5,000 is the minimum loan amount.

  • 50% of the loan amount is required as a processing fee (minimum of Rs 500 and maximum of Rs 5,000 for Swarna loans and 50% of applicable Swarna loan fee for Swarna Express loans.)

  • Flexible repayment possibilities, from 6 months to 2 years.

Bank of Punjab and Sindh

  • Interest rates vary from 6.80 to 7.5% per annum.

  • 25 lakh is the maximum loan amount.

  • Rs 15,000 is the minimum loan amount.

  • Processing fee Rs 500 for loans below Rs 2 lakh and 0.50% of the amount for loans above Rs 2 lakh (a maximum of Rs 10,000)

  • Repayment: A maximum repayment period of 12 months is permitted.












Indian bank

  • Middle and low income borrowers can apply for gold loans through Indian Bank.

  • Interest rate: 7.0% per annum

  • 80-85% of the market value of the pawned gold jewelry, or the financing scale or unit cost as determined by DLTC and NABARD, is the loan amount (whichever is lower)

  • Processing fee 0.30% of the loan amount for loans between Rs. 25,000 and Rs. 5 lakhs (a minimum of Rs 300). 0.28% of the loan amount is required for loans between Rs. 5 lakh and Rs. 1 crore (a minimum of Rs 1,500)

  • Repayment: 12 months for regular Agri Jewel loan products and 6 months for exceptional loans.











First published: June 26, 2022, 12:19 p.m. IST



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