SBI's Gold Loan: Interest Rate, Margin, Maximum Repayment Period And Other Details

Any individual of 21 years or above can apply for SBI's gold loan.

SBI's Gold Loan: Interest Rate, Margin, Maximum Repayment Period And Other Details

The maximum repayment period of SBI's gold loan can go up to 36 months.

The State Bank of India (SBI) offers gold loan of up to Rs 20 lakh to customers against their gold valuables. SBI's gold loan can be availed by pledge of gold ornaments including gold coins sold by banks with minimum paper work and low interest rate, as mentioned on SBI's website-sbi.co.in. Any individual of 21 years or above can apply for SBI's gold loan. Any individual (singly or jointly) with steady source of income including bank's employees, pensioners can apply for these types of loans. No proof of income is required for availing SBI's gold loan, said country's largest lender.

Here are key things to know about SBI's gold loan:

  1. The maximum loan that can be provided is Rs 20 lakh and minimum loan amount is Rs 20,000, said SBI.

  2. The repayment of principal and interest commences from the month following the month of disbursement. (Also read: SBI Loans: How You Can Avail Home Loan, Education Loan, Car Loan And Others)

  3. The maximum repayment period of SBI's gold loan can go up to 36 months.

  4. The bank maintains a margin of 25 per cent of the value of the gold.

  5. Pledges of gold ornaments are duly verified for quality and quantity. (Also read: How To Apply For SBI PPF Account: Documents Required, Eligibility, Other Details)

  6. The processing fee includes 0.50 per cent of the loan amount plus applicable GST (Goods and Services Tax).

  7. The interest rates charged on SBI's gold loan is 2 per cent above the marginal cost of funds based lending rate (MCLR) for 1 year. Currently, it is 7.95 per cent and the effective rate is 9.95 per cent per annum, as mentioned on SBI's website. (Also read: State Bank of India (SBI) Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY): Here's All You Need To Know)

  8. Gold appraiser charges are also to be paid by the applicant.



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