Gold Loan Interest Rate: Gold loans are becoming increasingly popular due to their lower interest rates and ease of application. Unlike traditional bank loans, gold loans require customers to provide gold as collateral in exchange for cash. The loan amount is typically determined by the quantity and purity of the gold offered. Banks offer this type of loan with minimal documentation and a variety of repayment terms to choose from.
For those interested in taking out a gold loan, here is a list of 10 banks that offer the lowest interest rates:
HDFC Bank: 7.20 per cent to 11.35 per cent with a processing fee of 1 per cent.
Kotak Mahindra Bank: 8 per cent to 17 per cent with a processing fee of 2 per cent plus GST.
Union Bank: 8.40 per cent to 9.65 per cent.
Central Bank of India: 8.45 per cent to 8.55 per cent with a processing fee of 0.5 per cent of the loan amount.
Uco Bank: 8.50 per cent with a processing fee ranging from Rs 250 to Rs 5,000.
SBI: 8.55 per cent with a processing fee of 0.50 per cent plus GST.
IndusInd Bank: 8.75 per cent to 16 per cent with a processing fee of 1 per cent.
Punjab and Sindh Bank: 8.85 per cent with a processing fee ranging from Rs 500 to Rs 10,000.
Federal Bank: 8.89 per cent.
Punjab National Bank: 9 per cent with a processing fee of 0.75 per cent.
The repayment tenure for a gold loan varies depending on the customer's preferences and the bank's policies. Loan amounts are calculated based on the purity of the gold offered, with a minimum of Rs 20,000 and a maximum of Rs 1,50,00,000, according to Kotak Mahindra Bank's website.
If you are planning to take a gold loan, keep in mind that an ITR is required for amounts above Rs 25 lakh, and a PAN card is required for annual incomes of more than Rs 5 lakhs. Without a PAN card, obtaining a gold loan may be difficult.
Read more: Pan-Aadhaar Link: This task is crucial for ITR filers, non-compliance may result in tax return issues
