Gold Loan Interest Rates 2022: Gold Loan Interest Rates Comparison

The gold loan interest rate is an important factor to consider before availing a gold loan. The gold loan interest rate varies from lender to lender so it is advisable to compare the rate before getting a loan. Read to know in details.

20 Sep,2022 09:22 IST 23
Gold Loan Interest Rates 2022: Gold Loan Interest Rates Comparison

Gold Loan helps overcome financial instability. It is a fast way to get money for personal and business requirements. The loan is highly beneficial to raise funds for education, property, business or any other purpose.

The borrower has to mortgage the gold as collateral to avail of the loan. Before availing of the gold loan, the borrower must check the lender's credibility. It is essential to assure the safety of the gold. The lender must also provide various options for repayment of the gold loan. Therefore, reputed banks or non-financing banking corporations are recommended.

Above all, the interest rate on the gold loan is an important aspect to consider. Numerous banks offer interest rates with processing fees. Therefore, you must find the best interest rate from the leading financial institutions.

Certain factors affect the gold loan interest rates. If the price of gold is high in the market, then the value of the gold ornaments or coins will also be high. In such cases, lenders offer a lower interest rate because the risk associated is low. People tend to accumulate more gold If the rate of inflation is high.

Gold acts as a hedge against inflationary conditions. If it continues for a longer period, it tends to push the prices of gold higher. In such cases, borrowers may get lower interest rates from lenders if they seek a gold loan.

The rate of interest of every bank varies. Here is the list of some leading banks in India.

Bank of Maharashtra:

With a processing fee of Rs 500 to Rs 2000 including GST, the bank offers an interest rate of 7 %.

Canara Bank:

Currently, the bank is offering an interest rate of 7.35%. The processing fees start from Rs 500 to a maximum of Rs 5000.

Union Bank:

The bank offers an interest rate of 7.25% to 8.25% on gold loans. The inclusion of processing fees is uncertain.

Punjab & Sind Bank:

The bank offers an interest rate ranging from 7% to 7.50% with processing fees of Rs 500 to Rs 10,000.

PNB:

It offers an interest rate of 7% to 7.50%.

SBI Bank:

The leading bank offers an interest rate of 7.30%. The processing fee is a minimum of Rs 500 with GST.

Make a comparative analysis of the rates given by different banks online. All the information is available and accessible, and an in-depth analysis of the offers made by several financial institutions is necessary to avoid losses and risks.

FAQs:

Q.1: What is the valuation fee?
Ans: These are the charges for conducting the valuation process on gold.

Q.2: How is the gold valued?
Ans: The lender will verify the purity and take the gold's exact weight.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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