Gold Loan: Interest Rates, Eligibility, Required Documents, fast Approval ?

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A loan which can be taken against Gold is Gold Loan. This Gold loan is a secure loan in which the person or a customer is going to take this loan against gold ornaments in India. This will be kept in gold loan company/ banks where in return they will give you the loan amount. That amount will depend upon the present market value of the gold. If you are willing to know more about this gold loan procedure details can follow the below article here.

These secured gold loans, where the jewelry of the customer is deposited as security for guarantee. In this procedure you are going to give your gold jewelry to the lender from where you are getting the loan. When you complete the repayment of loan again you will get back your Gold which you have kept for collateral at bank. You can take this gold loan from private banks, nationalized banks and also many other financial institutes also provide you these gold loans with the best interest rates.

It is always suggested to go for a gold loan than for a personal loan. Comparing to the personal loan taking gold loan is the better option depending on the observations. In taking this gold loan you will get the value of the gold up to 60%. With the tenure of one year you have to apply for the gold loan in which interest rate charges will be 13 to 14 percent.


If anyone is having the financial emergency can take a gold loan by pledging your gold ornaments at banks. Almost there are more than twenty financial institutions and banks which provide you he gold loans with their best interest rates. The amount of the loan will be decided on the rate of the gold per gram on the particular day as gold rates changes day by day. To fulfil your financial emergency as soon as possible taking a gold loan is the best option.

Before applying for the gold loan know the required eligibility criteria and the required documents to be submitted in the application procedure. Here are the details of that.

Required Eligibility to Apply for the Gold Loan-

• AT the time of applying the minimum age if the applicant should be 21 years of age.

• Along with the bank employee and pensioners, the one who are earning can apply for the gold loan.

Documents required at the time of application-

• Duly filled in application from with all the correct and genuine details.

• This application should be filled by the applicant.

• 2 Photographs of passport sized of the applicant.

• Address proof of the applicant which can include their passport/ PAN Card/ Aadhar Card Xerox.

• Address proof.

Comparing Interest Rates-

Before taking a loan by collateral of your gold, you have to check the interest rates of different banks. Knowing these differences will bring some change in your repaying amount. As you can’t to each bank and know the differences between the interest rates as it may be waste of our time and money. Hence here are the details of interest rates of some banks which you can know.

• Mannapuram Gold Loan for the amount of Rs.1000 to Rs.1.5 crore charges interest rates up to 28% per annum. This will be for the tenure of 3 months onwards.

• SBI State Bank of India Gold Loan for the amount of Rs.20,000 to Rs.20 lakh charges interest rates of 9.8% per annum onward. This will be for the tenure of up to 36 months.

• HDFC Gold Loan for the amount of Rs.50,000 onwards and (Rs.10,000 for rural areas) charges interest rates 12.04% onwards per annum. This will be for the tenure of 6 to 48 months onwards.

• ICICI Gold Loan for the amount of Rs.10,000 to Rs.15 lakhs charges interest rates 11% onwards per annum. This will be for the tenure up to 6/12 months.

• Axis Gold Loan for the amount of Rs.25.000 to Rs.20 lakh charges interest rates up to 15% to 17.5% per annum. This will be for the tenure of 6 to 36 months.

• Canara Gold Loan for the amount of Rs.10,000 to Rs.10 lakh charges interest rates up to 11.95% per annum. This will be for the tenure of up to 12 months.

• Bank of Baroda Gold Loan for the amount of Rs.25,000 to 10 lakhs charges interest rates up to 11.65% per annum. This will be for the tenure of up to 12 months.

• Karnataka Gold Loan for the amount of Rs.5 lakh per account charges interest rates up to 10.65% per annum. This will be for the tenure up to 12 months.

• PNB Gold Loan for the amount up to Rs.10 lakh for the non-productive purposes and for the productive purposes there is no limit. These charges interest rates up to 10.5% to 11.05% per annum. This will be for the tenure of 3 months onwards.

• India Infoline (IIFL) Gold Loan for the amount of Rs.3000 onwards charges interest rates up to 10.5% to 17% per annum. This will be for the tenure of 3 to 11 months.

• Kotak Mahindra Gold Loan for the amount of Rs.25,000 to Rs.25 Lakhs charges interest rates up to 10.5% to 17% per annum onwards. This will be for the tenure of 3 to 36 months.

• Federal Gold Loan for the amount of Rs.1000 onwards charges interest rates up to 10.65% per annum (floating). This will be for the tenure depending on the lender’s terms and conditions.

• Central Bank of India Gold Loan for the amount up to 50 grams of gold can be pledged as security charges interest rates up to 10.65% per annum onwards (floating). This will be for the tenure of 12 months.

Important Note- These interest rates were carried by the banks in the last two years. These may vary depending upon the customer loan amount and the tenure selected by the customer.

Calculator for Gold Loan-

If any customer wants to know the tentative amount they are going to pay as the installment, for the amount they took as loan can use gold loan calculator. In this gold loan calculator, you can calculate the Equated Monthly Installments which is nothing but your EMI amount. This amount should be paid against the loan bought from the bank to repay them. By checking the amount to be paid per some amount using this calculator the customer can adjust depending on their affordability.

Here below are some examples namely as Mr. X, Y and Z. These examples show you how the actual calculation will be done for gold loans using the calculators.

• Let’s assume Mr. X has already started a business and he have a requirement of the money of Rs.2.5 Lakhs in his business. As it is the immediate requirement, he decided to take a gold loan by pledging his wife’s gold jewelry. He decided to repay that amount to the bank in the tenure of 12 months. For these 12 months of tenure the bank charges interest rates at 12.50% per annum. After the calculation with the total interest amount payable is Rs.17,250 for the entire tenure for his corresponding amount of Rs.22,270/-

• Mrs. Y is a business woman for small scale. She is working to increase her income amount. Now in her business she is in need of Rs.5 lakhs for her business. This amount was needed to her to take a large order. As it is immediate requirement, she finally decided to invest her gold jewelry for lending a gold loan. She decided to repay the taken loan amount with the tenure of 18 months. For this 18-month tenure for 5 lakhs amount the bank charges her to pay Rs.30,608/- as Equated Monthly Income which is EMI. In interest she has to pay Rs.50.931 /-.

• Now here is the third example Mr. Z, this person is having some rice mill business. Now he is need of Rs.10 Lakhs. He also decided to lend a gold loan with the gold jewelry he is having. Now for his Rs.10 Lakh Loan he chooses the tenure period of 20 months to repay this amount. For his tenure period the bank charges him with the amount of Rs.55,648/-. He paid Rs.1,12,962/- interest amount for his total taken loan.

Here is a table which shows you the exact calculation method, this makes easy for you to understand the calculation procedure.


Loan Amount

Interest Rate



Total Interest Payable

Mr. X

Rs.2.5 lakhs


12 months

Rs.22, 270/-


Mr. Y

Rs.5 lakhs


18 months

Rs.30, 608/-


Mr. Z

Rs.10 lakhs


20 months

Rs.55, 648/-


Gold Loans procedures from different Banks/-

Mannapuram Gold Loan-

Important points to be remembered-

• This bank offers you gold loans with thirteen different schemes such as-

• GL B4+

• Business Loan (GL BL)

• GL H3+

• GL B2+

• GL B1-N

• GL B1+N

• Swarna Shakthi (GL-SX)

• Samadhan Plus (GL-PL)

• Super Loan Plus (GL-SG+)

• Privilege Loan (GL-PL)

• GL-SY Scheme

• GL-DS Scheme

The above given schemes are having their own unique benefits with them. For clear understanding we say for example for Express Gold Loan (GL-XG+0) you can get the loan tenure up to 180 days. For GL-DS scheme the tenure will be for 90 days only and for the Samadhan plus (GL-SA+) it is for 365 days.

By pledging the gold jewelry, the customer can avail a gold loan from this bank.

• The loan amount can be repaid at any time during the tenure of the loan.

• To avail this gold loan the customer, need to take any support of any guarantor.

• Once the fulfillment of the application procedure is done with submission of the all the necessary documents you will get your loan amount in minutes.

• At the end of the loan tenure also the customer can pay the loan amount as this will not make the burrower to pay the EMI every month

• The ornaments or jewelry of the customer will be kept safe on the safety room of the bank. The electronic surveillance technology can also be used for the safety of the ornaments.

• If the customer is not able to pay the loan amount on time then the penal charges of 3% will be charged on their loan amount.

SBI Gold Loan facilities-

Important points to be noted, while availing gold loan from the SBI bank.

• The bank provides you the three type of the loans to the customers such       

       1. Gold loan

       2. Liquid Loan

       3. Bullet repayment Gold Loan.

• The SBI State Bank of India will offer you the gold loan for the tenure of 36 months. After the disbursal of the loan amount the interest and principal amount will be decided on monthly basis.

• It also offers the liquid loan for the tenure period of 36 months.

• In the Bullet Repayment Gold Loan, on or before finishing the loan tenure the loan amount has to be repaid. In this the loan will be offered for only 12 months tenure period.

• The burrowers can also put their gold ornaments and also their gold coins which are sold by the banks to avail a gold loan from SBI.

• The applicants who are above 18 years can apply for the gold loans.

• Lenders will run the loan process in a very timely manner.

• Pensioners are also in to apply for these gold loans.

• In this bank for the tenure period of 3 years with the loan amount of Rs.5 lakhs, the Emi will be calculated with the interest rate 9.8%.

• Gold appraiser Charges or penalties are also applicable if not able to repay the loan on time.

HDFC Gold Loan-

Points to be noted-

• After the submission of the needed documents and once the application procedure is done by the burrower the loan will be disbursed to the customer in 45 minutes.

• Hidden fess or the hidden charges are not there from the lender.

• If the customer is already having the existing relationship with the bank then they will be offered with the preferable rates.

• Security of the gold of the customer is pledged in the lender’s lockers.

• For the amount more than Rs.1.5 lakh, Rs. 500 and for the sum amount of Rs.1.5 lakh, Rs.250/- has to be paid as the valuation fee.

• If the borrower closes the loan within the period of three months, foreclosure charges of 2% along with the GST will have to be paid.

• Interest rate of 2% will be chargeable to the customer if they repay the amount late.

• Along with this statutory and stamp duty charges are also applicable.

• Rs.350/- along with the GST are also applicable as the renewal Processing fee.

ICICI Gold Loan-

• In ICICI Bank candidates who want to take a loan on their gold can keep their gold as collateral to take a gold loan.

• It will take approximates 60 minutes of time to disburse the amount to the customer’s account. This will be done once the application procedure is done.

• To avail loan from ICICI bank minimal documentation is necessary.

• At the time of the completion of loan tenure also the amount with the payable interest can be paid.

• Customers who want to renew their loan can be done with some applicable fees.

• The gold that has taken from the customers is kept safely in the safety lockers.

• Up to 1% foreclosure fee will be charged.

• Documentation charges of Rs.199/- has to be paid by the applicants.

• If the customer wants to renew his loan then he has to pay chargeable amount from Rs.300/- to Rs.1000/-.

• Stamp duty charges are also applicable.

• Delinquent account charges are also applicable for overdue handling between Rs.200/- to Rs.1700/-

Axis Gold Loan-

• Gold ornaments and gold coins can be pledged here for availing the Gold loan.

• On the application day only the loan amount will be disbursed to the customer.

• Candidates who are minimum 18 years of age to maximum 75 years of age can take this loan.

• Online channels are also available from the axis bank to take a gold loan.

• The bank offers the customized loan tenure options.

• The gold taken from the customers are kept safely in the Axis bank’s Vaults.

• For the loan amount of Rs.5 Lakhs the bank charges the interest rate of 15% for the tenure period six months.

• Rs.500/- of valuation fee is charged.

• If the customer is not able to pay repay the amount on time the bank will charge the penal interest of 2%.

Canara bank Gold Loan-

• Swarna Gold Loan is offering by the canara Bank to the new customers who are new to the bank and also to the credit worthy individuals who are having the savings account with the lender.

• Gold and the gold coins that are specially minted and sold by the banks can avail gold loans.

• The lender will disburse the loan amount in the timely manner.

• To avail this gold loan no guarantee is required.

• The bank allows the hassle-free process of application.

• Applicable jewel appraising charges has to be paid by the burrowers as the penalty.

Bank of Baroda Gold Loan-

• There should not be any speculative reason or purpose to avail this loan. The loan can be taken for any purpose.

• Applicants who are having gold ornament, jewelry or gold coins are eligible to take a loan with all the required application and documentation procedure.

Karnataka Bank Gold Loan-

• The applicants can avail this loan by pledging their gold ornaments or gold jewelry.

• The application procedure is extremely simple and you will quickly get the loan sanctioned in this Bank.

PNB Gold Loan-

• These gold loans can be taken for using for both productive and non-productive purposes also.

• Any applicants who are availing gold loans from the PNB they can submit their gold jewelry, gold ornaments or gold coins. These gold coins should be issue by the scheduled bank or PNB Punjab National Bank.

• A convenient application procedure is there to be followed by the customer.

• For the security of the loan the lender will accept only 22 carat gold.

• Rs.250/- has to be paid as the documentation charges.

IIFL Gold Loan.

• The customers who in need of the fund can take a gold loan from the bank by pledging their gold ornaments.

• The loan will be approved in 5 minutes with the simple application procedure provided by the lender.

• It will take 30 minutes to disburse the approved loan.

• Repayment options are very flexible.

Kotak Mahindra Gold Loan-

• Gold jewelry/Ornaments which are above 18 carats are accepted by the Bank to avail the loan.

• It is not mandatory for individuals to be a customer of the bank to get a loan.

• The bank offers the three repayment procedures such as-

1. Term Loan-Bullet

2. Term Loan- EMI

3. Over Draft Facility.

• The interest rate of 11% per annum for the amount of Rs.5 lakhs in the tenure period of 6 months is applicable by this bank.

• Customer has to pay the applicable stamping charges.

• Lender will take the credit appraisal charges. The amount will be from rs.250/- to Rs.2000/-.

• Rs.1250/- per quarter as commitment charges are applicable.

• 3% interest will be charged if the customer is not able to repay the amount on time.

• 30% interest on due will be charged if the loan payment is late.

• Rs.750/- are charged per instance as dishonor charges.

• Rs.500/- are charged as the swap charges.

• If you want to take any no due certification, then yoj have to pay Rs.50/-

Federal Bank Gold Loan-

• Gold ornaments/jewelry of 22 carats are accepted by the bank to avail the loan to the customer.

• Instant sanction of loan is done by the lender.

• Quick loan disbursement, hassle free process is done by the lender.

• A flexible repayment options are available to the customers.

• Hidden charges are not there.

• The customer who already exists with the bank need not to submit any documents.

• For the amount of Rs.1 lakh the bank will charge interest rate of 13% per annum for the tenure period of six months.

Hope this information will help you in deciding about the selection of bank to avail a gold loan. We request you to keep on checking our official web portal to know more and updated details.

Last Updated on : 26/Apr/2020

Know More How To Apply ??

Know More About

Gold Loans

You're eligible for a Gold Loans if you:

Are legally adult enough to handle it

Have still got it

Get a regular pay check

Make more than a basic buck

Your eligibility depends on:

Earn more than minimum income required

Maximum allowed Gold Loans is Rs. 10K to Rs. 45 lakhs

EMIs of other loans loweryour eligibility

Boost your eligibility by:

Pay off your credit card bills

Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

  • 1. Photo ID and age proof
  • 2. Signed application form with photograph
  • 3. Residence proof
  • 4. Last 6 months bank statement
  • 5. Documentation for salaried applicants:
    • Last 3 months salary - slips
    • Form 16 or Income Tax Returns
  • 6. Documentation for self-employed applicants:
    • Last 3 years Income Tax Returns with computation of Income
    • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Gold Loans Interest Rates

Updated on 25 Nov 2017

Gold Loans Details
Interest Rate (Monthly reducing balance) 9% - 16.5%
Processing Fees Varies with bank
Loan Tenure 1 year to 3 years
Pre-closure Charges Varies with bank
Guarantor Requirement Varies with bank

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