Gold evaluation
According to the Bank of Baroda website, “Once you have chosen your preferred lender, you need to get your gold appraised. Different lenders offer different appraisal options. You can visit the lender’s branch for the appraisal. An assayer weighs the gold and conducts the KYC process. The lender then informs you about the loan amount you can get, the interest rate applicable to the loan, and the repayment terms. Lenders determine the value of gold by taking the average of the price of one gram of gold over a month.”
No credit rating required
When you apply for a gold loan, the only requirement is that you must have gold (coins, jewelry, etc.) in your possession. Even if you have a bad credit rating, you can still get the loan. In fact, a large number of gold loan providers do not require credit ratings, which adds to the huge appeal of the loans.
Documents
The documentation process for getting a gold loan is not as strict as that of a personal loan. You are only required to submit KYC documents. You are not required to provide proof of income, in case you are applying for the loan from ICICI Bank.
Latest Gold Loan Interest Rates
Banks offer different payment options to gold loan customers.
| Bank / NBFC | Gold Loan Interest Rate | Processing fee | Last update |
| Kotak Mahindra Bank | 8.00% to 24.00% | Up to 2% + GST | 2/11/2023 |
| HDFC Bank | 8.30% to 16.55% | 1% of the disbursement amount | 2/11/2023 |
| Central Bank of India | 8.45% to 8.55% | 0.50% of the loan amount | 2/11/2023 |
| Uco Bank | 8.50% | From 250 to 5000 rupees maximum | 2/11/2023 |
| Bank of India | 8.65% to 9.00% | 0.56% of the sanctioned limit | 2/11/2023 |
| Union Bank | 8.65% to 9.90% | 2/11/2023 | |
| OSE | 8.70% | 0.50% + VAT | 2/11/2023 |
| Industrial Bank | 8.75% to 16.00% | 1% of the loan amount | 2/11/2023 |
| Bandhan Bank | 8.75% to 19.25% | 1% + VAT | 2/11/2023 |
| Punjab and Sind Bank | 8.85% | From 500 to 10,000 rupees maximum | 2/11/2023 |
| Bank of Baroda | 9.15% | Applicable charges + GST | 2/11/2023 |
| National Bank of Punjab | 9.25% | 0.75% of the loan amount | 2/11/2023 |
| Bank of Maharashtra | 9.30% | From Rs 500 to Rs 2000 + GST. | 2/11/2023 |
| Federal Bank | 9.49% | 2/11/2023 | |
| Union City Bank | 9.50% | Null | 2/11/2023 |
| Canara Bank | 9.60% | From 500 to 5000 rupees | 2/11/2023 |
| J&K Bank | 10.00% | 500 rupees + VAT | 2/11/2023 |
| ICICI Bank | 10.00% | 1% of the loan amount | 2/11/2023 |
| Karur Vysya Bank | 10.25% | 0.50% (including appraisal costs) | 2/11/2023 |
| Bank of South India | 10.01% | 2/11/2023 | |
| Bank of Karnataka | 11.21% | 2/11/2023 | |
| Axis Bank | 17.00% | 0.5% + VAT | 2/11/2023 |
| Muthoot Finance | 22% per year with 2% cashback if 100% interest is paid monthly | 2/11/2023 | |
| Small Finance Bank of Australia | Up to 24.00% | 1% + VAT | 2/11/2023 |
Source: Compiled by ETIG; interest rates as of 14 August 2024.
Refund method
Gold Loan (EMI Based): Repayment of principal and interest will commence from the month following the month of disbursement.
Gold loan with 3-month timely repayment: interest and capital at the end of the term or before.
Gold loan with 6-month timely repayment: interest and capital at the end of the term or before.
Gold loan with 12-month timely repayment: interest and capital at the end of the term or before.
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