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This Bank Offers Lowest Gold Loan Interest Rate: Know The Scheme


Amid corona led liquidity crisis, SBI has pulled down interest rate lower for its SBI Personal Gold Loan scheme to 7.5% from the earlier 7.75% per annum. And even has increased the quantum of loan offered under the scheme, so the loan ticket size that can be availed can range between Rs. 20000 to Rs. 50 lakhs. This was until some time back was up to Rs. 20 lakh.

Here is all that you would want to know about SBI Personal Gold Loan Scheme



Individuals aged 18 years and above with steady income source such as bank's employee, pensioners may apply for the loan.

How To Get Loan From SBI's Personal Gold Loan Scheme?

How To Get Loan From SBI's Personal Gold Loan Scheme?

While for gold loan which is secured by pledging once gold ornaments or gold coins (sold by banks in this case) with the lender, jewellers and gold loan companies are the go-to options, banks also have started to offer lucrative deals.

And herein SBI claims interest rate on its gold loan product to be the most attractive in the industry.

Before the approval and disbursal, banks do their due-diligence of checking the gold kept as collateral for both quality and quantity. No documentation as in the proof of income is required for availing loan, but remember it shall be wise to secure such a loan when you have steady income source.

Also, the loan application here can be made using YONO SBI App.

Interest Rate:

Interest Rate:

This is higher by 0.5% over the MCLR rate for one year which is 7%. So the interest rate comes at 7.5% per annum. For housing loan customers of the bank, they are extended this loan at a still competitive rate of 7.3% per annum.

Processing Fees

Processing Fees

0.25% of the Loan amount + applicable GST minimum Rs250/- + applicable GST and Nil if applied through YONO.

Cost for gold appraiser is also to be borne by the loan applicant.

It is to be noted that interest rate mentioned are effective from May 15 to September 30, 2020 as per the bank's site.


For the different loan products the tenure can range between 1-3 years at max.


Proof of identity and address proof

Gold loan application plus 2 photographs

Witness letter for illiterate borrowers

Disbursement time

• DP note and DP Note Take Delivery Letter.

• Gold Ornaments Take Delivery Letter.

• Arrangement Letter.

Loan Repayment Method:

Gold Loan : The repayment of Principal and Interest will be commenced from the month following the month of disbursement.

Liquid Gold Loan: Overdraft Account with transaction facility and monthly interest is to be served.

Bullet Repayment Gold Loan : On or before the term of the loan/ on closure of account.

Point To Note When Taking Gold Loan:

Prospective gold loan customers need to pay heed to the latest move with regard to gold loan whereby they can now get 90% of the gold's value as loan instead of the earlier up to 75% limit. But remember, though the higher amount may help you tide over some of the imminent financial crunch, you must avoid going for the maximum loan amount as in the case gold prices trend downward as is the case now where gold has seen a sharp correction in price of close to Rs. 5000 from record highs, you may be asked by your lender to submit additional collateral or pre-pay such that their LTV ratio comes to be as directed by the apex bank.

Read more about: gold loan
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