Gold Loan Interest Rates 2022: Gold Loan Interest Rates Comparison

Gold loan can be beneficial for an individual to manage financial needs, but having a knowledge about interest rate is important. Read to know about interest rate of gold loan and how to compare interest rate.

28 Oct,2022 08:10 IST 25
Gold Loan Interest Rates 2022: Gold Loan Interest Rates Comparison

Gold loans allow you to avail of funds by pledging their gold as collateral to the lender. The lender determines the gold value against the current price of the gold in the domestic market and offers a loan amount equivalent to a certain percentage of the gold value. The proposed gold loan to the borrower includes an interest rate, which the borrower is liable to repay along with the principal amount over the loan tenure.

However, the rates of gold in the domestic and international markets keep changing daily based on numerous factors, such as the price of the US dollar or the overall demand and supply factors. The change in the price of gold also results in fluctuating interest rates for various gold loans offered by lenders such as banks and NBFCs.

If you are looking to take a gold loan in 2022, you must compare and analyse the gold loan interest rates across different lenders.

Gold Loan Interest Rates Comparison

When taking a gold loan, you must compare lenders based on the interest rate they charge for their gold loan. Before comparing gold interest rates, you should understand the factors that affect India's gold loan interest rates.

• Demand and Supply:

Demand and supply highly influence the price of gold in the domestic market and, ultimately, the interest rates on gold loans. If the demand for gold is higher than the supply, the price of gold increases. On the other hand, if the supply is higher than the demand, the price of gold decreases.

• Economic Situation:

As gold is a tradable commodity, investors prefer to buy gold physically or online when the economy is going through a negative phase. Since gold sees higher demand, it can also allow borrowers to attain a gold loan with a lower interest rate.

• Loan Tenure:

The higher the loan tenure, the lower the interest rates will be, as you will have more time to repay the gold loan. Hence, you must choose a financial institution with more tenure options while taking a gold loan.

Having understood the factors that affect the gold loan interest rates in India, you can compare different gold loan interest rates offered by various lenders. Visit the websites of various financial institutions and choose an ideal gold loan product with an attractive and affordable gold loan interest rate.

FAQs:

Q.1: What is the average interest rate on Gold Loans?
Ans: The average interest rates for gold loans range between 6.48% - 27% p.a.

Q.2: What are the documents required to avail of a Gold Loan?
Ans: Documents required are Aadhar Card, PAN Card, Driving License, Passport, Ration Card, Electricity Bill, etc.

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.

Most Read

Franking and Stamping: What’s the difference?
14 Aug,2017 03:45 IST
45492 Views
Like 7335 7335 Likes
Difference Between 24 Karat and 22 Karat Gold
9 Jan,2024 09:26 IST
43787 Views
Like 5957 5957 Likes
Personal Loan With Low CIBIL Score
21 Jun,2022 09:38 IST
27106 Views
Like 6233 6233 Likes
Why Gold Is Cheaper In Kerala?
15 Feb,2024 09:35 IST
1859 Views
Like 3947 1802 Likes

Get in Touch

I accept the Terms and Conditions