SBI offers various loans, including personal loans, home loans, auto loans, and gold loans. The largest public bank has recently revised its gold loan rates. The lowest interest rate is now at 8.25%. An additional 0.75% concession will be available up to 30th September 2021. So, the interest rate will be 7.50% if applied online till 30th September. The SBI gold loan services can be accessed through the YONO SBI portal with less paperwork and less processing time, easier and faster.
How to apply through YONO?
Like any other loan application, to apply for SBI gold loan, the customer will have to log in to the YONO portal - then go to the menu and select the loans option (third option). The last option will appear as - gold loan. After selecting that option,'Apply Now' will appear on the page. Now the online application form will come with a few drop-boxes as - Residential Type, Occupation Type, and Net Monthly Income. Now the form will have to be filled with details like - ornament type, quantity, the exact carat of the gold, and net weight of the gold.
After filling in all the information, the customer will have to visit the branch physically with the ornament to be pledged, 2 photos, and the KYC documents.
SBI has fixed its maximum loan amount at Rs. 50.00 lakhs and minimum loan amount at Rs. 20,000. The processing fees of the service is 0.50% of the loan amount in addition to the applicable GST (Minimum Rs. 500 + applicable GST). Gold appraiser charges will have to be paid by the loan applicant. The loan's tenure is 36 months (12 months in case of Bullet Repayment Gold Loan).
Gold loan options in other banks
Along with SBI, there are other banks that offer gold loan services. Some of the banks are presently carrying better interest rates than SBI. Punjab and Sind Bank offers it at 7%, Bank of India offers it at 7.30% and Canara Bank offers it at 7.35% interest rates for Rs. 5 lakhs loan with a tenure of 3 years. These are the top 3 lowest interest rate options presently available in India.
Non-banking financial companies (NBFCs) also offer gold loans but their rates are higher than the public sector banks. Usually, their interest rates start at 9.12%.