SBI Gold Loan

SBI Gold Loan A gold loan is a loan that is taken using your gold assets and has an interest rate that must be paid back when the term is up. Individuals can apply for up to Rs. 50 lakhs in gold loans from State Bank of India (SBI) against 18–24K gold items, such as gold bonds and jewelry.

State Bank of India offers gold loans starting at 8.65% annual percentage rate (APR) for amounts up to Rs 50 lakh. For EMI based loans, the maximum tenure is 3 years. For loans with a bullet repayment option, the maximum tenure is 3 months, 6 months, or 12 months. Pledges of gold coins or ornaments from several banks are required if you want to get SBI gold loan. Up to three years are allowed for repayment, and a processing fee equal to 0.50% of the loan amount is charged. You can Apply SBI Gold Loans with minimal documentation required and a low interest rate.

SBI Gold Loan Highlights

Interest Rate 8.75% - 9.60% p.a.
Processing Fees Up to 0.50% of the loan amount
Loan Amount Up to Rs 50 lakhs
Tenure Up to 3 years
Collateral Pledge of gold ornaments
Gold Loan Repayment Facility Demand Loan & Bullet Repayment Facility
gold loan image

Get a gold loan for your immediate financial needs

Apply Now

SBI Gold Loan Interest Rate

SBI Gold Loan interest rates begin at 8.75% per annum. State Bank of India provides varying gold loan interest rates based on the following types of SBI Gold Loan schemes:

Scheme Interest Rates (p.a.)
12 Months Bullet Repayment Gold Loan 8.85%
6 Months Bullet Repayment Gold Loan 8.80%
3 Months Bullet Repayment Gold Loan 8.75%
Gold Loan EMI Based 9.60%

Also read: Best Gold Loan Interest Rate

Gold Loan Interest Rates Offered By Partner Banks & NBFCs

Bank/NBFC/Fintech Interest Rate
State Bank of India 8.75% p.a. onwards Apply Now
Axis Bank 17% - 19% p.a. onwards Apply Now
Punjab National Bank 9.25% p.a. onwards Apply Now
Bank of India 8.80% p.a. onwards Apply Now
IndusInd Bank 8.80% p.a. onwards Apply Now
Bank of Baroda 9.40% p.a. onwards Apply Now
Union Bank of India 9.30% – 10.65% p.a. Apply Now
Canara Bank 9.25% p.a. onwards Apply Now
HDFC Bank 8.50% - 15.97% p.a. Apply Now
Federal Bank 8.99% p.a. onwards Apply Now
ICICI Bank 10% p.a. onwards Apply Now
Bajaj Finserv 9.50% – 28% p.a. Apply Now
Manappuram Finance 12% p.a. onwards Apply Now
Bank of Maharashtra 9.30% p.a. onwards Apply Now
Kotak Mahindra Bank 8% - 24% p.a. onwards Apply Now
Indian Bank 0.77% per month Apply Now
IIFL Finance 11.88% - 27% p.a. Apply Now
Rupeek 8.88% p.a. onwards Apply Now
Muthoot Finance 10.90% p.a. onwards Apply Now
Shriram Finance 11.40% p.a. onwards Apply Now
gold loan image

Facing financial crunch? Your gold can be your rescue

Apply Now

Features of SBI Personal Gold Loan


SBI Personal Gold Loan is available to individuals who provide gold ornaments and specially minted gold coins (weighing up to 50 grams) sold by banks as collateral. This loan can be used for various purposes such as covering medical expenses, providing margin money for education or home loans, and funding travel plans or other personal needs.

Repayment Options on SBI Gold Loan

SBI provides two repayment options for personal gold loans: the Demand Loan and the Bullet Repayment Facility. With the Demand Loan, borrowers can repay the loan through monthly EMIs. On the other hand, for the Bullet Repayment gold loan, borrowers have the flexibility to repay the principal and interest either on or before the maturity of the loan.

Tenure offered on SBI Personal Gold Loan

In SBI's EMI-based Gold loan scheme, applicants can obtain a gold loan for up to 3 years. Additionally, for the bullet repayment option, individuals can avail themselves of gold loans with tenures of 3 months, 6 months, and 12 months.

Loan Amount on SBI Personal Gold Loan

Prospective applicants can obtain gold loans ranging from Rs. 20,000 to Rs. 50 lakh. The loan amount is determined by the purity of the gold, which is assessed based on its carat (22, 20, 18) and net weight. However, loans cannot be availed against the security of Primary Gold, such as 24-carat gold bars and biscuits.

Also read: Best Gold Loan EMI Calculator

gold loan image

Get Lowest Interest Rates on your Gold Loan

Apply Now

SBI Gold Loan Fees & Charges

Processing Fees

Particulars Charges
12 Months Bullet Repayment Gold Loan 0.50% of the loan amount (Minimum Rs 500; Maximum Rs 10,000)
6 Months Bullet Repayment Gold Loan Rs 300
3 Months Bullet Repayment Gold Loan Rs 200
EMI based Gold Loan 0.50% of the loan amount (Minimum Rs 500)

Eligibility Criteria for availing SBI Gold Loan

SBI extends personal gold loans to applicants aged 18 and above who possess a stable income source. However, for SBI employees and pensioners, no proof of income is necessary. Additionally, NRI applicants with a temporary local address can also avail SBI Gold Loan.

Also read: Best Gold Loan Eligibility

gold loan image

Facing financial crunch? Your gold can be your rescue

Apply Now

Documents Required for SBI Gold Loan Application

Documents required when applying for a gold loan include:

  1. Gold Loan Application form and two passport-sized photographs.
  2. Identity Proof (such as Aadhar Card, Driving License, or Voter Identity Card).
  3. Address Proof (such as Voter Identity Card, Aadhar Card, or Driving License).
  4. Witness Letter (required for illiterate borrowers).

Documents needed at the time of Disbursement may include:

  1. DP note and DP Note Take Delivery Letter.
  2. Gold Ornaments Take Delivery Letter.
  3. Arrangement Letter.

Also Read : Best Gold Loan Documents Required

gold loan image

Get Lowest Interest Rates on your Gold Loan

Apply Now

Features of SBI Gold Loan

SBI Gold Loan offers a range of attractive features, including:

  • Fast Approval: The loan is easy to avail with quick approval and minimal documentation.
  • Low Processing Fee: SBI charges a processing fee of only 0.25% of the loan amount.
  • Prepayment: Borrowers have the option to prepay their loan with no prepayment charges levied by SBI.
  • Flexible Loan Amount: Borrowers can access loans from Rs. 20,000 to Rs. 50 lakh.
  • Flexible Repayment Tenure: Repayment can be made through EMIs, with flexible tenure options ranging from 12 to 36 months.
  • Flexible Loan Repayment Modes: Customers can choose from gold loan, liquid gold loan, or bullet repayment gold loan methods for repayment.
  • Security: Gold items provided as collateral are returned upon repayment of the loan.
gold loan image

Get a gold loan for your immediate financial needs

Apply Now

FAQs on Gold Loan Interest Rates

After the final payment has been received, you will receive your gold ornaments.

After the loan has been approved, the borrower has one month to start making monthly installments, or EMIs. If the loan was acquired in January, for example, the first payment should be made by February.

All types of gold jewelry, such as bangles, necklaces, and rings, have been accepted as forms of security. Some gold coins up to a certain weight are accepted as security by certain institutions, but gold bars are not yet accepted. If the gold jewelry is set with priceless stones, the weight of the gold will determine how much you can borrow rather than the value of the stones.

You can apply for gold loan without having a high credit score, since a gold loan is secured one. Therefore, all it takes to be eligible for a gold loan is the ownership of gold. Those with poor credit or a history of defaulted loans are also eligible. But since your CIBIL report includes information about your gold loan, you should make regular EMI payments to raise your CIBIL score.

The majority of banks and NBFCs use internal evaluators who decide the gold's value by looking at its weight and purity. Based on the gold prices on the evaluation date and the estimate given by the internal evaluator, your loan amount will be determined.

The bank or NBFC must receive your gold collateral, which will be kept in a safe vault maintained by security personnel 24/7 and protected by CCTV. After you pay off the loan principal plus interest, you will receive the gold back.

You can use the eligibility calculator available on the websites to find out how much you can borrow. The worth of your jewelry or ornaments will determine how much you are able to borrow.

The lender will charge you a penalty on the amount of the overdue loan if you fail to repay the loan by the due date. The lender may sell your gold ornaments to recover the outstanding balance if you fail to repay the loan, even after several reminders.

The terms and conditions provided by the lender will determine this. You might be able to prepay the loan amount at any time without paying any fees from some lenders. If you wish to prepay the loan amount, some banks and financial institutions may charge you a specific amount.

No, the gold lending scheme does not offer any tax benefits. However, tax benefits are available if the money is used for home improvement, company expenses, or the purchase or construction of a residential property.

Before granting a gold loan, each lender has their own set of requirements. Understanding each expenditure and fee related to a gold loan is important. Another important step in reducing your r isk is to deal with a reputable lender.

The majority of lenders who provide gold loans don't ask applicants to provide guarantors. On the other hand, you might need to provide a guarantor for high-value loans.

If you have a decent credit score, most lenders will allow you apply for a gold loan even if you are not one of their current clients. If you apply for a loan, the lender might in some circumstances ask an existing customer to introduce you.

Gold loans have the ability to affect your credit score because they are personal loans.

Pledged valuables are usually stored in a strong room equipped with electronic surveillance technology by the lenders. Lenders may also choose to insure the gold ornaments or assets for their entire worth. However, it is advisable to learn about the steps the lender takes to protect your jewelry and possessions, considering the type and worth of the assets.

Banks and non-banking financial institutions (NBFCs) offer gold loans to any Indian citizen, with the common age restriction being between 18 and 75 years old. This could differ depending on t he lender.

Applications for gold loans can be quickly verified and approved by lenders. You will get the loan amount if your application is accepted. The disbursal period usually ranges from a few minutes to 48 hours.

Gold loans are short-term loans with flexible terms that, depending on the provider, may  ranging from a minimum of one month to five years or longer.

Yes, you have the option to foreclose on the loan at any moment. While some lenders charge between 2 and 4% of the remaining principal amount, most lenders do not charge foreclosure fees f or gold loans. You can always contact the lender to find out the steps required in a foreclosure.

Interest rates might change depending on the circumstances of the market and the different product options. In general, the interest rate for banks is between 14% and 17%, and for NBFCs, it ranges between 14% and 26%.

An instant gold loan is available to you. After your application process is over, it is disbursed in an hour.

A gold loan usually has a 60-month payback period. But each lender has a different tenure.

Because you are offering your gold holdings as security, taking out a gold loan is considered to be safe. To guarantee a safe transaction, it is crucial to deal with respectable and trustworthy lenders. You can get even more assistance through research.

Different people who want less paperwork or credit checks, flexible payback terms, and either a limited or no credit history may find gold loans helpful.

Yes, in most cases, a PAN (Permanent Account Number) card is needed in order to apply for a gold loan. It is required because it helps lenders in confirming the borrower's identity and maintaining financial transaction transparency.

The loan-to-value ratio, interest rates, conditions of repayment, customer service, and other elements can all affect which bank is ideal for a gold loan. To select the bank that offers the best conditions and meets your unique needs, it is advisable to investigate and compare several banks, including non-banking financial institutions (NBFCs) and banks in the public and private sectors.

For gold loans, different lenders may have different interest rates and loan limits. You can use Mybankingtips to compare the loan offers made by different banks and non-bank financial institutions (NBFCs) in order to determine which offers the best terms and the lowest interest rates. Creditworthiness of the borrower, loan-to-value ratio, and current market conditions are some of the variables that can affect the lowest gold loan amount.

gold loan image

Turn your gold into opportunity. Avail gold loans with quick disbursal

Apply Now