This bank offers the lowest interest rate on gold loans: know the program

How do I get a loan from SBI’s personal gold loan program?

While for the gold loan which is secured by once pledging gold ornaments or gold coins (sold by banks in this case) with the lender, jewelers and gold lending companies are the options of choice, banks have also started to offer lucrative deals.

And here, SBI is claiming that the interest rate on its gold loan product is the most attractive in the industry.

Before approval and disbursement, banks exercise due diligence by verifying the quality and quantity of gold held as collateral. No documentation like in proof of income is required to qualify for a loan, but remember that it is wise to get such a loan when you have a stable source of income.

Also, the loan application here can be done using the YONO SBI app.

Interest rate:

Interest rate:

This rate is 0.5% higher than the one-year MCLR rate which is 7%. The interest rate is therefore 7.5% per year. For customers of the bank’s home loan, this loan is extended to them at a still competitive rate of 7.3% per year.

Processing fee

Processing fee

0.25% of the loan amount + minimum applicable GST Rs250 / – + applicable GST and nil if applied via YONO.

The cost of the gold appraiser is also the responsibility of the loan seeker.

It should be noted that the interest rates mentioned are in effect from May 15 to September 30, 2020 according to the bank’s website.


For the different loan products, the term can range from 1 to 3 years at most.


Proof of identity and proof of address

Gold loan request plus 2 photographs

Letter of testimony for illiterate borrowers

Disbursement timeframe

• DP notes and DP notes take the delivery letter.

• Gold ornaments take the letter of delivery.

• Letter of arrangement.

Loan repayment method:

Gold loan: The repayment of capital and interest will begin from the month following the month of disbursement.

Liquid gold loan: The overdraft account with ease of transaction and monthly interest must be paid.

Gold Bullet Loan Repayment: At the latest at the end of the loan / at the end of the account.

Note when taking out a gold loan:

Prospective gold lending clients should take into account the latest developments in gold lending, which now allows them to get 90% of the value of gold in the form of a loan instead of the previous limit up to 75%. But remember, while the higher amount may help you get through some of the looming financial crisis, you should avoid going for the maximum loan amount because in the event that gold prices tend to trend. to fall, as is the case now when gold has undergone a sharp price correction. of nearly Rs. 5000 from all-time highs, your lender may require you to submit additional collateral or prepay so that their LTV ratio meets the guidelines of the umbrella bank.

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