Gold Loan Interest Rates And Charges Table
| Interest Rate | 0.99% onward p.m. (11.88% - 27% p.a.) Rates varies depending on scheme availed |
|---|---|
| Processing Fee[1] | As per Scheme Construct |
| Penal Charges (w.e.f 01/04/2024) | 0.5% p.m (6% p.a) on outstanding due amount[2] |
| MTM Charges[3]* | ₹500.00 |
| Stamp Duty and other statutory charges | As per applicable laws of the state |
| Auction Charges*# | ₹1500.00 |
| Overdue Notice Charges*# (w.e.f 07/03/2024) (Once in 90 days) |
₹200 per Notice |
| SMS Charges* | ₹5.90 per Quarter |
| Part-Payment Charges | NIL |
| Pre-Closure Charges | NIL Minimum of 7 days interest will be charged if loan is closed within 7 days |
*Charges are inclusive of GST
# The combined levy of overdue notice charges and Auction charges will be capped at ₹ 1500 per customer loan account
[1] Processing fee is subject to the availed scheme and loan amount. The applicable rates are mentioned in the loan sanction letter at the time of disbursement.
[2] Outstanding due amount for this purpose includes the Principal outstanding and Interest accrued. Penal charges will not be levied on the outstanding penal due amount.
[3] MTM Charges shall be as defined in the T&C.
Apart from the gold loan rate of interest that the borrowers have to pay, a gold loan comes with some additional charges. These charges are levied on the borrowers because of the additional services rendered by the lending company. However, IIFL Finance understands that such charges are to be borne by the customer and, hence, has designed the best gold loan interest rates within the product to carry a few additional charges.
With an attractive and affordable gold loan rate of interest, IIFL Finance’s additional charges are nominal. The processing fee varies depending on the gold loan scheme availed, starting from Rs 0 onwards. Furthermore, the MTM charges are charged at a flat Rs 500.
These additional charges are listed with utmost clarity on our website to let you analyze their payment obligations before taking a gold loan. Additionally, there are no hidden costs attached. IIFL Finance stands out by offering not just the most competitive and best gold loan interest rates in the market but also keeping these additional charges remarkably low compared to industry standards. This customer-centric approach ensures our gold loan offerings remain highly attractive and accessible to borrowers seeking financial assistance.
Factors Affecting Gold Loan Interest Rates
Gold loan interest rates play a pivotal role in determining the overall cost of borrowing and the affordability of the loan for the borrower. These rates are influenced by factors such as:
Calculation of Gold Loan Interest Rate
Two main factors affect the calculation of the gold loan rate of interest:
-
Loan Amount : The gold loan amount you want to borrow is the primary factor in calculating the rate of interest of the gold loan. The higher the loan amount, the higher the overall interest rate.
-
Loan Tenure : The loan tenure specifies the period of your monthly loan repayment obligations. The higher the loan tenure, the lower the interest rate.
Visit the iifl.com to use the gold loan calculator , and calculate your gold loan amount in a few simple steps by putting in the desired loan amount, value of gold articles and the loan tenure.
Always remember that the gold loan interest rate depends on the specific loan scheme chosen and its tenure. This knowledge of gold loan interest rates is paramount as it directly impacts the overall borrowing cost of the loan. Consequently, securing a gold loan with a low-interest rate can significantly reduce repayment costs and alleviate financial strain.
Gold Loan Interest Rate FAQs
Taking an interest-free gold loan may not be an option at IIFL Finance, you can opt for a gold loan at nominal rates
Yes, the Interest rates on your gold loan will vary according to the purity of your gold jewelry
IIFL Finance provides special schemes for farmers where the interest rates are lower so that they can avail gold loan to cater their capital requirements
The gold loan interest rates starts from 0.99% p.m i.e., 11.88% p.a and goes up to 2.25% p.m i.e., 27% p.a, depending on factors such as loan amount, loan tenure, etc
EMI-based gold loan functions as any other loan, where the full amount is disbursed after the processing of application and the repayment is made in equated monthly installments as per gold loan scheme availed
Yes, you can only pay the interest on your gold loan and settle the principal amount at the end of the tenure
The interest rate for a ₹1 lakh gold loan with IIFL Finance can range between 11.88% and 27% per annum. However, the exact interest rate will depend on factors like the gold loan scheme that you have opted for, your eligibility, and the loan tenure. Plus, there may also be other charges like processing fees and mark-to-market (MTM) charges.
Apart from gold loans, IIFL Finance offers a wide range of financial products tailored to meet the needs of individuals, small businesses, and entrepreneurs. Three of their key offerings include Business Loans>, MSME loans and Secured Business Loans.
Gold prices influence gold loan interest rates by affecting the value of the collateral. When the gold price today is high, lenders consider it as lower risk, potentially offering reduced interest rates. Conversely, declining gold prices may prompt lenders to increase rates to mitigate the risk of collateral devaluation.
In a gold loan process, the borrower pledges their gold ornaments as collateral to the lender. The lender evaluates the gold, and depending on the purity and weight of the pledged gold, a loan amount is approved, and the amount is quickly disbursed. The borrower, in turn, has to repay the loan amount within a fixed tenure to reclaim their gold.
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