For many looking to borrow in these Covid-19 times, a gold loan offers some solace. Interest rates charged by banks and NBFCs on gold loans are lower compared to an unsecured personal loan, which is an advantage for borrowers. And many have pledged their family gold to raise money. In fact, as the festive season is upon us, the State Bank of India, Bank of Maharashtra and a few other banks have waived off the processing fees for all customers applying for a gold loan. SBI charges 7.5% a year for gold loans. Recently, IIFL Finance has announced a gold loan scheme at 9.48% p.a. interest rates which are the lowest among NBFCs. Like any other loan, there are penalties if you miss your instalments.