Gold loans have emerged as a popular and convenient financial solution for individuals in need of quick cash to meet their short-term needs. In 2024, the market for gold loans is booming, with various banks and financial institutions vying to provide the most attractive interest rates and repayment terms. In this article, we will explore which banks are offering the lowest gold loan interest rates in 2024, enabling you to make an informed decision about your financial needs.
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, 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 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 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 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 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 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|