Gold Loan Interest Rate: Many banks offer gold loans, but while going for this type of mortgage finance, it should be noted that a bank can offer up to 75 per cent of the LTV (loan to value) ratio of one’s gold. Meaning, if you are pledging the price of gold 1 lakh in the bank, so you can get up to 75,000 Gold Loan against your gold. Hence, one must ensure that how much loan is getting sanctioned and what is the LTC ratio of one’s pledged gold. Apart from this, different banks charge different interest rates on their offered gold loans. Hence, it is an important factor to consider while choosing a gold loan from a bank.
Here we are listing 5 banks which offer the cheapest gold loan interest rate,
1] State Bank Of India (SBI), According to SBI’s website – sbi.co.in, the gold loan interest rate in SBI is 7.30 per cent per annum. an applicant can reach 50 lakh loan for a period of 3 years. While processing one’s gold loan, SBI charges a processing fee of 0.50 per cent of the loan amount plus GST. The minimum GST that SBI charges while processing gold loan is 500.
2]Punjab National Bank or PNB: PSU Bank is offering Gold Loan at an initial interest rate of 7 per cent. The maximum interest rate of gold loan offered by PNB is 7.50 percent.
3]Canara Bank: This government bank is giving gold loan at an interest rate of 7.35 percent. It charges a processing fee from 500 5000, depending on the gold loan amount.
4]Punjab & Sind Bank: This bank is offering gold loans at an interest rate ranging from 7 per cent to 7.50 per cent per annum. Minimum processing fee is charged here 500 while the maximum processing fee charged by this bank is 10,000.
5]Union Bank: This state-owned bank is offering gold loans at an annual interest rate of 7.25 per cent to 8.25 per cent. The website of PSU Bank is silent on the processing charges involved in processing the gold loan.
6]Bank of Maharashtra: This bank is offering Gold Loan at an attractive annual interest rate of 7 percent. It takes from the processing fee from 500 2000 with GST.
Hence, the gold loan interest rate charged by Bank of Maharashtra is one of the cheapest among the major banks in India and it is also charging reasonable processing fees. Though SBI, PNB and Canara Bank gold loan interest rates are also reasonable but their processing fees make them a bit costlier than Bank of Maharashtra.