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Description Minimum Maximum

Loan Amount

Rs 50,000

Rs 10,000,000

Loan Tenure

6 months

12 months

Interest rate range*: (Q1- April 2024 to June 2024)

Minimum Maximum Mean

9%

18.00%

14.64%

*Terms and Conditions applied

Penal Interest is not applicable for agricultural loans up to Rs 25,000 per customer.

NOTE:

  • It includes various categories like loan amount, customer relationships etc.

  • Mean rate = Sum of rate of all loan accounts / Number of all loan accounts.

Charges:

Particulars Twelve months product Six months product

Processing Fees

Up to 2%* of the loan amount

Up to 2%* of the loan amount

Foreclosure Charges (For all schemes except Flexi Loans)

Nil - if the loan is pre-closed after 180 days.

Nil - if the loan is pre-closed after 120 days.

0.50% - if the loan is pre-closed within 180 days.

0.50% - if the loan is pre-closed within 120 days.

1% - if the loan is pre-closed within 90 days.

1% - if the loan is pre-closed within 60 days.

2% - if the loan is pre-closed within 30 days. 

2% - if the loan is pre-closed within 30 days. 

Foreclosure Charges (For  Flexi Loans)

2% if the Flexi Gold Loan is closed within 1 month of account opening or renewal.

2% if the Flexi Gold Loan is closed within 1 month of account opening or renewal.

Gold OD

1% of the facility amount if the facility is prepaid within 11 months or post 30 days of auto-renewal.

NA

Valuation Charges

For Loans:

Up to ₹ 3 lakh: ₹ 350

Greater than ₹ 3 lakh up to ₹ 10 lakh: ₹ 750

Greater than ₹ 10 lakh: ₹ 1,500

For Loans:

Up to ₹ 3 lakh: ₹ 350

Greater than ₹3 lakh up to ₹10 lakh: ₹750

Greater than ₹10 lakh: ₹ 1,500

Top-up Charges

1% of the Top-up amount subject to a minimum of ₹ 250

1% of the Top-up amount subject to a minimum of ₹ 250

Documentation Charges**

 ₹ 500 for Flexi Loans

 ₹ 500 for Flexi Loans

Renewal Fees

a. Up to ₹1  lakh: ₹ 350

b. Greater than ₹ 1 lakh up to ₹ 5 lakh: ₹ 750

c. Greater than ₹5  lakh: ₹ 1,750

a. Up to ₹ 1 lakh: ₹ 350

b. Greater than ₹ 1 lakh up to ₹ 5 lakh: ₹ 750

c. Greater than ₹ 5 lakh: ₹ 1,750

Penal charge on overdue amount - Penal charges will be equal to 5% per annum on the overdue amount, from the due date until the actual payment date plus applicable taxes or other statutory levies, if any.

Stamp Duty and other statutory charges – As per the applicable laws of the state.

Overdue Handling Charges (delinquent accounts)

1. ₹ 750 where a notice has been delivered to the communication address and a paper publication is not required.

2. ₹ 1,700 where no notice has been delivered to the communication address and a paper publication is to be done.

3. ₹ 300 for sending an auction notice over and above preceding points 1 and 2.

4. ₹ 200 for sending a Loan Recall Notice over and above preceding points 1 and 2

Notes:

GST, TDS, other government taxes, stamp duty, levies etc. as per prevailing rate will be charged over and above these charges. The above fees will not be applicable for Agricultural Loans up to ₹25,000 per customer.

*Applicable for flexi Gold Loan product.

Annual Percentage Rate:

The Annual Percentage Rate (APR) is a method to compute annualised credit cost, which includes interest rate and processing fee.

The APR calculator does not include charges like stamp duty, Prepayment charges etc.

To calculate the same, please click here to download the APR calculator.

* Terms and Condition apply

FAQs on Gold Loan Interest Rates

What is the Gold Loan Interest Rate?

Gold Loan Interest Rate is the rate at which a financial institution lends money against the value of gold provided as collateral. It represents the cost of borrowing funds.

How is the Gold Loan Interest Rate determined?

Gold Loan Interest Rates are determined by a range of factors including the lender’s policies, Loan Amount, tenure, purity, weight of the gold, Loan-To-Value ratio and the borrower’s credit profile.

Are there any additional charges apart from the Interest Rate?

Yes, lenders may impose additional charges such as Processing Fee, Valuation Fee and Documentation Charges. These should be considered while calculating the total cost of the Loan.

How does the Loan Tenure affect the Interest Rate?

The tenure of your Gold Loan influences the Interest Rate. Loans with longer tenures may have higher Interest Rates compared to Loans with shorter tenures. It is important to choose a Gold Loan Tenure that aligns with your repayment capacity, while also considering the impact on Interest Rate. 

What is the Loan-to-Value (LTV) ratio for a Gold Loan?

The LTV ratio is the Loan Amount a lender offers, compared with the value of gold. For example, if the LTV ratio is 75%, you can get a Loan of up to 75% of the gold's value.

 

Does my Credit Score affect the Gold Loan Interest Rate?

No. Credit Scores do not affect Gold Loan Interest Rates. This is because Gold Loans are Secured Loans. 

Is the Interest Rate on Gold Loans fixed or variable?

Gold Loan Interest Rates can either be fixed or variable, depending on the lender's terms. Fixed rates remain constant throughout the Loan Tenure, while variable rates can change, based on market conditions.

Can I prepay my Gold Loan and are there any penalties?

Most lenders allow prepayment of Gold Loans, but some may levy Pre-closure Charges. It is important to check the specific Terms and Conditions of the Loan Agreement.