InvestorQ : What are the rates at which banks and NBFCs offer gold loans to customers?
Ankita Patil made post

What are the rates at which banks and NBFCs offer gold loans to customers?

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Samita Patil answered.
3 years ago
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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.

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