SBI Gold Loans offer a simple and secure way to get money by using your gold, gold jewelry, or gold coins as collateral. You can borrow up to Rs. 50 lakh, making it a good option if you need a large amount of money. The interest rate is low, starting at 7.30% per year, so you won’t have to pay too much in interest. You also have up to 3 years to repay the loan, giving you plenty of time. Plus, the processing fee is just 0.50% of the loan amount, keeping extra costs down. This makes SBI Gold Loans a convenient and affordable way to use your gold to meet your financial needs.
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Highlight of SBI Gold Loans Interest Rate |
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Interest Rate |
Starting from 7.30% per annum |
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Loan Amount |
Up to a maximum of Rs.50 lakh |
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Loan Tenure |
Up to a maximum of 3 years |
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Processing Fee |
0.50% of the loan amount plus GST, with a minimum charge of Rs.500. |
SBI Gold Loans are easy to apply for, with fast approval and quick access to funds. Your gold, used as collateral, is kept safe and returned to you once the loan is fully repaid. The interest rate for personal gold loans starts at 8.80%, making it suitable for different financial needs. With a competitive interest rate and the security that SBI offers, this loan is a great option for anyone looking to use their gold to get money quickly.
Types Of SBI Gold Loans
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SBI Gold Loan:
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SBI Gold Loan for Micro, Small, and Medium Enterprises (MSMEs):
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SBI Gold Loan for Agriculture:
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SBI Gold Loan for Education: |
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SBI Gold Loan for Medical Emergencies: |
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Features of SBI Gold Loan Schemes
- Flexible Loan Amount: Borrowers can secure loans ranging from Rs. 20,000 to Rs. 50 lakh.
- Variable Repayment Tenure: Loans can be repaid in EMIs, with terms spanning from 12 to 36 months.
- Multiple Repayment Methods: Customers can repay their SBI Personal Gold Loans through gold loans, liquid gold loans, or bullet repayment options.
- Security Assurance: Gold items pledged as collateral are returned upon full repayment of the loan.
- Quick Approval: This loan is accessible with fast approval and minimal paperwork.
- Low Processing Fee: SBI charges a processing fee of 0.25% of the loan amount.
- Prepayment Option: Borrowers can prepay their loan without incurring any prepayment charges.
Various SBI gold loan Interest Rate 2024
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Category |
Interest Rate |
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SBI Gold Loan for Micro, Small, and Medium Enterprises (MSMEs) |
Typically ranges from 7.5% to 10% p.a. |
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SBI Gold Loan Interest Rate For Agricultural |
Generally around 7.5% to 9% p.a. |
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SBI Gold Loan for Education |
Usually around 8% to 10% p.a. |
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SBI Gold Loan for Medical Emergencies |
Typically between 7.5% to 10% p.a. |
Special Gold Loan Scheme for COVID-19 Warriors
In light of the financial difficulties stemming from the COVID-19 pandemic, SBI offers a unique “Gold Loan for COVID Warriors” scheme featuring bullet repayment. The interest rate for this scheme begins at 7.00% per year. Prospective applicants should verify their eligibility with the bank before applying.
SBI Gold Loan Fees and Charges
1. Processing Fee: SBI charges a processing fee of 0.50% of the loan amount plus GST, with a minimum of Rs. 500. This amount is deducted from the advance loan amount.
2.Prepayment Fees: SBI gold loans generally do not charge any prepayment fees. You can repay your loan before the maturity date without paying any penalty. However, it is best to confirm with your bank as the rules may vary
3. Renewal Fees
Annual Repayment Fee: If you choose to renew your gold loan after the initial period ends, SBI will charge you a renewal fee. Fees may vary; Therefore, it is recommended that you check with your bank when renewing.
4. Gold Valuation: Some SBI branches may require gold valuation. This fee is usually nominal and depends on the value of the assessment. The bank will pay this fee or it will be sent to the debtor.
5. Late Payment Fee: If you fail to pay, SBI will charge a penalty in addition to the interest rate. This rate may vary but is usually around 2% per annum. It exceeds the applicable interest rates.
6. Low Upfront Payment Charges: No Upfront Payment Charges: Generally, SBI does not charge any closing charges for gold loans after full payment.
7. Other Fees
Refund Fees: A small fee will be charged for providing information on your credit.
Factor Effecting SBI Gold Loans Interest Rate
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Loan Amount: The amount of money you want to borrow will affect your interest rate. Generally speaking, a larger loan may result in better terms or a lower rate. This is because a larger loan amount usually means more business credit for the bank.
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Gold Purity and Quality: The purity of the gold you are betting on plays a major role in determining the interest rate. Higher purity gold, such as 22 karat gold, usually comes with better loan terms and lower interest rates. This is because pure gold has a higher value and is considered an inferior commodity.
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Loan Tenure: The length of time you choose to repay your loan will affect your interest rate. In general, shorter loan terms can result in lower interest rates than longer loan terms because the risk and time required by the bank to administer the loan is reduced.
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Repayment Capacity: Your ability to repay the loan affects the interest rate. Lenders evaluate your income and financial stability to ensure you meet the repayment terms. If you have a better repayment capacity, you may qualify for a better interest rate.
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Credit Score: Although gold loans are secured against your gold, your credit score can still impact the interest rate. A higher credit score may result in better rates..
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Existing Relationship with SBI: If you have a relationship with SBI, such as another account or loan, it will positively affect the terms of your loan. Banks often offer better interest rates to customers they have established relationships with.
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Market Conditions: Market conditions and changes in gold prices will affect the prices offered. When prices are high or the economy is unstable, interest rates may be adjusted accordingly.
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Loan Purpose: The reason for the loan also affects the interest rate. Interest rates for loans for specific purposes such as agriculture, education or emergency treatment may be lower than other types. Banks may offer special interest rates depending on the loan amount.
SBI Gold Loan Interest Rate Compared to Other Lenders:
- SBI Bank: Offers gold loans with interest rates starting from 7.30% per annum. The transaction fee is 0.50% of the loan amount plus GST. There is no early repayment fee and no penalty.
- HDFC Bank: Gold loans are available with interest rates ranging from 11% to 16% per annum. The processing fee is 1% of the loan amount plus GST. Early repayment will incur a fee of 1% of the balance, but no additional penalty will be levied.
- Axis Bank: The interest rate for gold loans ranges from 13.50% to 16.95% per annum. The processing fee is 0.50% of the loan amount plus Goods and Services Tax (GST). Closing fees range from 0% to 2% of the loan amount, depending on the case, and a 2% monthly penalty is added to overdue payments..
SBI Gold Loan Interest Rate Calculator
To calculate EMI (Equated Monthly Installment) for an SBI Gold Loan, you can use the following formula:
EMI= P x R x (1+R)^N / [(1+R)^N-1]
Where:
- P = Principal Loan Amount
- r = Monthly Interest Rate (annual interest rate divided by 12)
- n = Number of Monthly Installments
Eligibility Criteria for SBI Gold Loan
- Age: 18 years or older, up to 70 years depending on tenure.
- Nationality: Indian citizen.
- Borrower Type: Individuals (salaried/self-employed), MSMEs, and institutions.
- Gold Purity: Minimum of 18 karats.
- Loan Amount: Up to 75% of the gold’s value.
- Documents: Proof of identity, address, and income (if required).
- Processing Fee: Applicable as per the loan amount.
Documents Required for SBI Gold Loan
To apply for the SBI Gold Loan, you’ll need to provide the following essential documents:
- Valid Identification Proof: Such as a PAN card, driver’s license, or voter ID, to verify your identity.
- Address Proof: A recognized document like a utility bill, passport, or driver’s license to confirm your residential address.
- Passport-Sized Photographs: Two recent passport-sized photos of yourself.
- Completed and Signed Application Form: Ensure all details are filled out accurately and the form is signed.
When receiving the loan amount, you’ll also need to submit:
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- Arrangement Letter: Detailing the loan agreement.
- Gold Ornaments Take Delivery Letter: Confirming receipt of pledged gold ornaments.
- DP Note: Documenting the deposit transaction.
- DP Note Take Delivery Letter: Acknowledging receipt of the DP note.
How to Apply for an SBI Gold Loan both online and offline?
Online Application
1. Visit the SBI Gold Loan Website: Go to the official SBI Gold Loan page or use the SBI YONO app.
2. Check Eligibility: Ensure you meet the eligibility criteria (Indian resident, age 18-75 years, own gold ornaments).
3. Calculate Loan Amount: Use the loan calculator on the website.
4. Fill Out the Online Application: Enter your personal details, contact information, and gold details.
5. Upload Documents: Provide identity proof, address proof, and recent photographs.
6. Schedule Appointment: Choose a nearby branch for gold appraisal and document verification.
7. Gold Appraisal and Verification: Visit the branch with your gold and original documents.
8. Loan Approval and Disbursement: Upon approval, the loan amount is disbursed to your account.
Offline Application
1. Visit Nearest SBI Branch: Locate and visit an SBI branch offering gold loan services.
2. Discuss with Bank Officer: Understand the terms and eligibility criteria.
3. Submit Application Form: Fill out the application form provided by the bank.
4. Provide Documents: Submit identity proof, address proof, and recent photographs.
5. Gold Appraisal: Present your gold for appraisal by the bank’s authorized valuer.
6. Loan Processing: The bank processes your application based on the appraisal and documents.
7. Loan Approval and Disbursement: Once approved, the loan amount is credited to your account.
Note: Both methods require you to provide identity proof, address proof, and recent photographs.
How To Check SBI Gold Loans Application Status
Online Portal:
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- Visit the SBI official website.
- Log in to your account if you have internet banking.
- Navigate to the “Loans” section and look for “Gold Loan” or “Track Application Status.”
SBI Mobile App:
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- Download and open the SBI YONO app.
- Log in to your account.
- Go to the “Loans” section and select “Track Loan Status.”
Visit the Branch:
- Visit the SBI branch where you submitted your application.
- Provide your application number and personal details to the bank staff to check the status.
SBI Gold Loan Interest Rate Customer Care
Call Us: 1800-11-2211 (toll-free), 1800-425-3800 (toll-free) or 080-26599990.
Email: gm.customer@sbi.co.in
FAQs..
Conclusion
SBI Gold Loans offer a convenient and secure financial solution for individuals seeking substantial funding. With competitive SBI gold loan interest rates starting at 7.30% per annum, flexible repayment options, and a straightforward application process, these loans are designed to meet diverse financial needs. Unique offerings, such as the “Gold Loan for COVID Warriors” scheme, further underscore SBI’s commitment to supporting borrowers during challenging times. By providing essential funds while ensuring the safety of pledged gold, SBI continues to be a trusted choice for those looking to leverage their gold assets effectively. Prospective borrowers should carefully review the terms, fees, and eligibility criteria to make informed financial decisions before applying.