Sbi Gold Loan Interest Rate

The SBI gold loan is one of the most lucrative Gold loan options available to the citizens of India with a very good interest rate compared to other banks. The Gold Loans are comparatively cheaper on the borrower which makes it a really effective option to get lump sum amount of money at hand for minimum hassle and time. Gold loan or to put it simply loan against Gold is a well- established form of loan offered by many nationalized as well as private banks and other financial institutions. Gold loan has some great benefits over every other form of loans available and the SBI gold loan scheme is one of the most preferred one in the market particularly because of the guarantee and brand name of SBI.

SBI Gold loan rate of interest compared to other private banks

SBI gold loan interest rate is 12.35%, which is much lower than any of the private banks. To compare with the interest rate for gold loans offered by private banks operating in India we come across names like Muthoot Finance, Manappuram Finance, Federal Bank, HDFC Bank and Axis Bank. Muthoot Finance offers Interest rate of 14% for tenure of up to 1 month, 17% for up to 3 months, 21-24% up to 12 months and as much as 26% for loans above 12 months.

Sbi Gold Loan Interest Rate is around 12.35%

For Manappuram Finance the Interest rate is 12% for tenure of up to 1 month, 18% for loans up to 1 to 2 months, 24-26% for loans ranging from 2 to 6 months, and 25%-26% for loans above 6 months. The interest rate for Federal Bank and SBI does not vary according to the tenure of the loan, and they offer a fixed rate of 14% and 12.35% respectively. HDFC and Axis both offers 13% for LTV up to 60%; 14%- 15.5% and 13%-16.5% for higher LTV respectively.

SBI gold loan interest rate is 12.35% (may change anytime)

Other key features of Sbi Gold Loan:

• SBI charges a loan processing fee of maximum Rs.511; for Muthoot Finance and Manappuram Finance the maximum processing fee is Rs.500 and Rs.200 respectively. Federal Bank charges no processing fees, whereas HDFC either charge no fees or a maximum of up to 0.5% for loan tenure of 6 months. Axis has a processing fee of 0.5%.
• The maximum tenure for Gold loan offered by SBI is of 30 months, which is much higher than any private bank. For Muthoot Finance and Manappuram Finance the maximum loan tenure is 15 months and 12 to 18 months respectively. Both Federal and Axis bank have maximum gold loan tenure of 12 months, and for HDFC the maximum tenure is 24 months.
• The maximum loan amount available against gold in SBI is 20 lakh, which is lowest compared to the private banks. For Muthoot Finance and Manappuram Finance the maximum loan amount can be as much as 1 cr, in Federal Bank the maximum loan amount is 75 Lakh, whereas in HDFC and Axis there is no specified maximum loan amount and it varies from case to case.

Sbi gold loan interest rate is actually much lower than the private banks and the maximum loan amount is also a limitation. However, the longer loan period, minimum processing fee, along with assurance from the government of India makes SBI gold loan the first choice of customers.