What are the rates at which banks and NBFCs offer gold loans to customers?
Answer
Answer
Banks and non-banking finance companies (NBFCs) offer gold loans to customers in exchange of their gold ornaments/jewellery/gold coins/bars, etc.
The reason gold loans are extremely popular among users is because they are easy to apply for as well as easy to get sanctioned.
Additionally, given that customers hand over their collateral (physical gold) to the borrowers upfront, the rate of interest at which the borrowers lend is relatively lower than other loans.
Here are the interest rates of various banks and NBFCs:
Gold loan provider
Interest rate
Processing fee
HDFC Gold Loan
9.6% onwards
Nil to 0.5% of loan sanctioned
Muthoot Gold Loan
12% onwards
0.25% to 1% of loan sanctioned
Manappuram Gold Loan
14% onwards
Varies on a case-by-case basis
ICICI Bank Gold Loan
10.5% to 16.5%
1% of loan amount
SBI Gold Loan
11.05% p.a.
0.5% of loan amount with a Min. Rs. 250
Axis Bank Gold Loan
14.50% to 17%
1% of loan amount
Please note that banks and NBFCs can change their rates from time to time.