Which Banks Offer Gold Loans?

Gold loans are a popular financial product where individuals can borrow money by pledging their gold jewelry or coins as collateral. Many banks offer gold loan services, catering to various needs from personal to business finance. Here is a comprehensive overview of banks that provide gold loans, including their features, interest rates, and eligibility criteria.

1. State Bank of India (SBI)

• Interest Rates: SBI offers competitive interest rates for gold loans, typically ranging from 7% to 10% per annum, depending on the loan amount and tenure.
• Loan Amount: Customers can avail of loans up to 75% of the gold's market value.
• Eligibility: SBI provides gold loans to both individuals and businesses. The applicant must be at least 21 years old and should provide valid KYC documents and proof of ownership of the gold.
• Repayment Tenure: Flexible tenures are available, from 6 months to 3 years.

2. HDFC Bank

• Interest Rates: HDFC Bank offers interest rates starting from 8% per annum, with the exact rate dependent on the loan amount and repayment tenure.
• Loan Amount: The maximum loan amount is up to 90% of the gold's market value.
• Eligibility: Individuals with a steady income or business owners can apply. Age criteria and KYC requirements must be met.
• Repayment Tenure: Loans are available for periods ranging from 3 months to 2 years.

3. ICICI Bank

• Interest Rates: ICICI Bank’s gold loan interest rates start from 8.5% per annum.
• Loan Amount: ICICI Bank provides loans up to 75% of the gold's value.
• Eligibility: Applicants need to be at least 18 years old and should have a clear title to the gold.
• Repayment Tenure: The bank offers tenures ranging from 6 months to 12 months.

4. Axis Bank

• Interest Rates: Axis Bank offers interest rates from 9% per annum.
• Loan Amount: The bank provides up to 80% of the gold's market value.
• Eligibility: Individuals with valid identification and proof of gold ownership are eligible.
• Repayment Tenure: Axis Bank provides gold loans with flexible repayment terms from 3 months to 3 years.

5. Punjab National Bank (PNB)

• Interest Rates: PNB’s gold loan interest rates start at 8% per annum.
• Loan Amount: PNB offers up to 75% of the gold's value.
• Eligibility: Both salaried and non-salaried individuals can apply. KYC documents and proof of gold ownership are required.
• Repayment Tenure: The repayment tenure ranges from 6 months to 2 years.

6. Bank of Baroda

• Interest Rates: The interest rate for gold loans at Bank of Baroda starts from 7.5% per annum.
• Loan Amount: The bank offers up to 80% of the gold’s market value.
• Eligibility: Applicants must provide valid ID, address proof, and gold documents.
• Repayment Tenure: The tenure options range from 3 months to 5 years.

7. Kotak Mahindra Bank

• Interest Rates: Kotak Mahindra Bank provides gold loans with interest rates starting from 8.5% per annum.
• Loan Amount: Loans up to 85% of the gold’s market value are available.
• Eligibility: Individuals must be at least 21 years old and should present necessary KYC documents.
• Repayment Tenure: Flexible repayment tenures from 6 months to 3 years are offered.

8. IDFC FIRST Bank

• Interest Rates: IDFC FIRST Bank offers interest rates beginning from 9% per annum.
• Loan Amount: Up to 75% of the gold’s market value can be availed.
• Eligibility: Both individuals and businesses are eligible with valid documentation.
• Repayment Tenure: Loan tenures range from 6 months to 2 years.

Comparison Table:

Bank	Interest Rate (p.a.)	Maximum Loan Amount	Maximum LTV (Loan to Value)	Repayment Tenure
State Bank of India	7% - 10%	Up to 75%	75%	6 months - 3 years
HDFC Bank	From 8%	Up to 90%	90%	3 months - 2 years
ICICI Bank	From 8.5%	Up to 75%	75%	6 months - 12 months
Axis Bank	From 9%	Up to 80%	80%	3 months - 3 years
Punjab National Bank	From 8%	Up to 75%	75%	6 months - 2 years
Bank of Baroda	From 7.5%	Up to 80%	80%	3 months - 5 years
Kotak Mahindra Bank	From 8.5%	Up to 85%	85%	6 months - 3 years
IDFC FIRST Bank	From 9%	Up to 75%	75%	6 months - 2 years

Key Considerations:

• Interest Rates: Always check the current rates as they can fluctuate. Some banks may offer promotional rates.
• Loan-to-Value Ratio (LTV): This ratio determines the amount you can borrow against the gold's value. Higher LTV means more borrowing potential.
• Repayment Terms: Choose a tenure that aligns with your repayment capacity to avoid penalties.

Conclusion:

When considering a gold loan, it's essential to evaluate the interest rates, maximum loan amount, and repayment terms offered by different banks. Each bank has its criteria and benefits, so comparing these factors can help you choose the best option based on your financial needs and goals.