Gold loans: These banks and NBFCs offer the lowest interest rates
Gold loans: Indian Bank, State Bank of India offer the cheapest gold loans at interest rates of 8.8-9.05 percent per annum. A gold loan is secured and is given when customers pledge their gold with the bank.
The recent gold price hike has sparked a gold rush in the loan market, with a growing number of Indians opting for gold loans. According to CRISIL Ratings, June 2024 saw a remarkable 20 percent increase in gold loan demand compared to May 2024, a clear indication of this trend's momentum. Gold loans offer a convenient solution for individuals seeking swift access to funds in an emergency without having to liquidate their assets. Since the value of gold secures gold loans, they typically come with lower interest rates than personal loans, which are unsecured. As per data compiled by Paisabazaar, the lowest interest rate on gold loans is from 8.8 percent onwards. Here are the top ten banks and non-banking financial companies offering the lowest interest rate on gold loans.
2/11
Indian Bank provides a competitive interest rate of 8.8 percent onwards for a gold loan of Rs 5 lakh with a 2-year tenure. This translates to a monthly installment of Rs 22,796.
3/11
ICICI Bank and Canara Bank offer gold loans of Rs 5 lakh with a 2-year tenure at an interest rate of 9 percent onwards. This results in a monthly EMI of Rs 22,842.
4/11
State Bank of India (SBI), the country's largest public sector bank, offers a competitive interest rate starting at 9.05 percent on gold loans of Rs 5 lakh with a 2-year tenure. This translates to a monthly EMI of Rs 22,853.
HDFC Bank, a leading private sector bank, offers a highly competitive interest rate starting at 9.10 percent on gold loans of Rs 5 lakh with a 2-year tenure. This results in a monthly EMI of Rs 22,865.
6/11
Punjab National Bank offers gold loans of Rs 5 lakh with a 2-year tenure at an interest rate starting at 9.25 percent, resulting in a monthly EMI of Rs 22,899. Also explore: Online personal loan up to Rs. 15 lakh via Moneycontrol
7/11
CSB Bank offers gold loans of Rs 5 lakh with a 2-year tenure at an interest rate starting at 9.49 percent, resulting in a monthly EMI of Rs 22,954.
8/11
DCB Bank offers gold loans of Rs 5 lakh with a 2-year tenure at an interest rate starting at 9.55 percent, resulting in a monthly EMI of Rs 22,968.
Manappuram Finance Limited, a leading gold loan NBFC in India, offers a highly competitive interest rate starting at 9.9 percent on gold loans of Rs 5 lakh with a 2-year tenure. This results in a monthly EMI of Rs 23,049.
10/11
Muthoot Finance Limited, a prominent NBFC, provides gold loans of Rs 5 lakh with a 2-year tenure at an interest rate starting at 10.5 percent. This translates to a monthly EMI of Rs 23,141.
11/11
The data has been sourced from the official websites of banks and NBFCs as of August 20, 2024. The list is organized in ascending order of interest rates, with the financial institution offering the lowest interest rate on gold loans at the top and the highest at the bottom. The EMI has been calculated based on the mentioned interest rates for a Rs 5 lakh loan with a tenure of two years. For simplicity, processing and other charges have been assumed to be zero in the EMI calculation.
Hiral Thanawala is a personal finance journalist with over 10 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
