Which Banks Offer the Lowest Gold Loan Interest Rates in 2024?

Updated: Interest rates as of 1st November 2023

Kotak Mahindra Bank:

Kotak Mahindra Bank is known for its competitive gold loan interest rates. In 2024, they offer a range of interest rates between 8.00% to 24.00%. Additionally, the bank charges a processing fee of up to 2% plus GST. Their flexible terms make them an appealing choice for those seeking affordable gold loans.

HDFC Bank:

HDFC Bank, a prominent player in the banking industry, offers gold loans with interest rates ranging from 8.50% to 17.30% in 2024. They charge a processing fee of 1% of the disbursal amount. The bank’s extensive network and customer-oriented services make it a popular choice for borrowers.

Central Bank of India:

The Central Bank of India provides competitive interest rates on gold loans in 2024, ranging from 8.45% to 8.55%. The processing fee is 0.50% of the loan amount. This bank is a reliable option for those looking for low-cost financing.

Uco Bank:

Uco Bank offers gold loans with a flat interest rate of 8.50% in 2024. The processing fee for their gold loans varies, starting from Rs. 250 and going up to a maximum of Rs. 5,000. Their straightforward terms and quick loan disbursal process make them a preferred choice.

Indian Bank:

Indian Bank is another bank offering competitive interest rates on gold loans, which range from 8.65% to 9.00% in 2024. The processing fee is 0.56% of the sanctioned limit. With its wide network and trusted services, Indian Bank provides a reliable option for gold loan borrowers.

Union Bank:

Union Bank offers gold loans with interest rates ranging from 8.65% to 9.90%. While the processing fee isn’t mentioned, the bank’s flexible terms and responsive customer service are key advantages.

State Bank of India (SBI):

SBI, one of the largest public sector banks, offers gold loans with an interest rate of 8.70% in 2024. They charge a processing fee of 0.50% plus GST. SBI’s extensive branch network and customer-centric approach make it a preferred choice for borrowers.

Bandhan Bank:

Bandhan Bank provides gold loans with interest rates ranging from 8.75% to 19.25% in 2024. They charge a processing fee of 1% plus GST. While their interest rates vary, they cater to diverse borrower profiles.

Punjab & Sind Bank:

Punjab & Sind Bank offers gold loans at a fixed interest rate of 8.85%. The processing fee ranges from Rs. 500 to a maximum of Rs. 10,000. Their transparent terms make them an attractive option.

Federal Bank:

Federal Bank provides gold loans with an interest rate of 8.99% in 2024. Details about the processing fee are not mentioned. Federal Bank’s commitment to quick loan disbursal sets it apart.

Bank / NBFC	Gold Loan Interest Rate	Processing Fee
Kotak Mahindra Bank	8.00% to 24.00%	Upto 2% + GST
HDFC Bank	8.50% to 17.30%	1% of disbursal amount
Central Bank of India	8.45% to 8.55%	0.50% of loan amount
Uco Bank	8.50%	Rs.250 to 5000 max
Indian Bank	8.65% to 9.00%	0.56% of the limit sanctioned
Union Bank	8.65% to 9.90%
SBI	8.70%	0.50% + GST
Bandhan Bank	8.75% to 19.25%	1% + GST
Punjab & Sind Bank	8.85%	Rs.500 to 10000 max
Federal Bank	8.99%

Updated: Interest rates as of 1st November 2023

What is the processing fee associated with gold loans from different banks?

The processing fee for gold loans varies among different banks. Here are the processing fees for some of the banks mentioned in the data:

Kotak Mahindra Bank: Up to 2% + GST
HDFC Bank: 1% of the disbursal amount
Central Bank of India: 0.50% of the loan amount
Uco Bank: Processing fee varies, starting from Rs. 250 and going up to a maximum of Rs. 5,000

How long are the tenures for gold loans typically offered by banks?

Gold loans are typically offered for tenures that vary between 6 to 12 months depending on the bank. The exact tenure may vary from one bank to another.

How quickly can a gold loan be disbursed to the borrower?

The speed of gold loan disbursal can vary depending on the bank and its internal processes. According to Ujjivan Small Finance Bank, it is possible to get your gold loan disbursed within an hour. However, this is subject to the verification of the gold, the application form, and supporting documents.

What are the options for loan repayment for gold loans?

Gold loan repayment options may include:

Single Bullet Repayment covering both the principal and interest at the end of the loan tenure.
Part payments during the tenure of the loan. The specific options may vary by bank.

What is the minimum and maximum loan amount that can be obtained through a gold loan from different banks?

The minimum and maximum loan amounts for gold loans can vary by bank. Here are some examples:
Axis Bank: Rs 25,000 to Rs 25 lakh
SBI: Minimum Rs. 20,000 to maximum Rs. 50 lakhs
PNB: Minimum amount is Rs 25,000 and maximum of Rs 25 lakh
Canara Bank: Minimum amount of Rs. 5,000 and maximum amount is Rs 35 Lakh

What documents are required to apply for a gold loan, and what are the common identification documents?

Common identification documents required for a gold loan application include:

One Passport Size Photograph
PAN (Permanent Account Number) Card along with any of the following documents:
Passport (not expired)
Driving license (not expired)
Voters’ ID Card
Aadhaar Card issued by UIDAI
Agri Allied Occupation Documentation (in case of bullet repayment for agriculture customers)

What are the consequences if a borrower does not repay their gold loan?

According to the HDFC Bank website, in the event of non-repayment of a gold loan, the bank typically starts by sending reminders via email and texts to notify the borrower about EMI payment. After a stipulated period, certain penal charges or interest rates are levied on the gold loan amount. If the gold loan amount is not paid after repetitive follow-ups over the due course stipulated by the bank, the bank will proceed to sell or auction the gold ornaments to recover the loan amount. The specific consequences may vary by bank and their policies.

Which Banks Offer the Lowest Gold Loan Interest Rates in 2024?