List of Banks Offering Gold Loan at Low Interest Rate
Gold loan is an incredible option for those looking to receive immediate cash funds. With the quick loan disbursal facility provided by the banks, no applicant will have to wait more than an hour to get the loan amount. Moreover, the banks impose no restrictions on the end-use of gold loans. Banks do not request credit history or income proof; anyone can enjoy the different gold loan offers. Since gold loan comes with numerous repayment options, the entire process has become easy and convenient. Due to various banks and NBFCs providing low gold loan interest rates, people are now switching from personal and home loans to gold loans.
List of banks offering Gold loans at a low-interest rate
Following are the top banks that offer gold loans at a low-interest rate in India.
State Bank of India
State Bank is a renowned public bank in India. SBI has a family of millions of customers from all over the country. SBI offers a variety of attractive gold loan schemes to avail. The interest rate charged by SBI is between 7% to 7.5%. The processing fee charged by the bank is about Rs.500 to Rs.2000 with a certain percentage of GST.
Union Bank
Union Bank is yet another leading public bank that has successfully secured more than 120 million customers across India. To avail of the gold loan scheme offered by Union Bank, borrowers will have to pay an interest rate of around 7.25% to 8.35%. Union Bank usually charges no processing fee; therefore, applying for Union Bank’s gold scheme is a great option for saving additional processing costs.
Canara Bank
This Bank is India’s third-largest nationalized bank. Canara bank is situated even in foreign cities like London, New York, Beijing, and Dubai. According to Canara Bank’s gold loan offer, the interest rate borrower will have to pay 7.35% with a processing fee of not more than Rs.5000.
Bank of Maharashtra
Bank of Maharashtra is a well-known public bank in the state of Maharashtra. You will find a wide range of gold loan offers at a reasonable interest rate. Bank of Maharashtra currently provides an interest rate of 7% to all gold loan applicants. The processing fees charged by the bank are around Rs.500 to Rs. 2000 plus GST.
Indian Bank
It is a nationalized bank in India known for providing various loan schemes and offers to individual customers. Indian bank charges gold loan interest rates between 7.50% to 8% depending on the plan availed by the borrower. Plus, the processing fee is pretty nominal. It is only 0.56% of the limit sanctioned by the bank.
Punjab & Sind Bank
Punjab & Sind Bank is an Indian nationalised bank operating under the Ministry of Finance, Government of India. The gold loan interest rate charged by Punjab & Sind Bank is usually between 7% to 7.50% with a flexible repayment tenure. To avail of the loan, you will have a processing fee of Rs. 500 To Rs. 1000 including GST.
Punjab National Bank
Punjab National bank is also a nationalised bank in India working under the wing of the Government of India. The interest rate charged by this bank is not more than 8.75%. While applying for a gold loan, the processing fee will be 0.75% of the loan amount. Gold testing and evaluating charges are included in the processing fee.
How to apply for a gold loan?
Nowadays, the online gold loan processes are quite seamless. All you have to do is fill up an online application form and submit it with the necessary documents if applicable. You will then be asked to visit the bank to get the gold you are willing to pledge, evaluated. After a thorough examination of the gold, the loan amount will be immediately credited to your bank account. If you find online applications confusing, you can always visit the nearest branch of your preferred bank and seek their help. The rest of the application process will be the same, except for the offline application form and submission of documents. Although the application process for both is somewhat similar, the online application process enables you to apply from anywhere, even while sitting in the office or traveling.
Gold loans are a must for those seeking high loan amounts with affordable interest rates. This loan is of great help, especially in case of emergencies. You get various offers like long repayment tenure, low-interest rates, and low processing fees. Furthermore, the simple documentation procedure of gold loans saves a lot of your time and effort. Though gold loans are simple to get, one must ensure timely payments of EMI and principle amount, otherwise, the gold pledged as security will have to be surrendered if not paid on time.