A gold loan is a great option for those who need instant cash in an emergency without having to sell their property. Compared to other loans, gold loans are much easier to obtain, making them increasingly popular among people. While other loans require extensive paperwork and long approval times, gold loans involve minimal documentation and are approved quickly.
Get Up to 75% of Your Gold’s Value
However, it’s important to remember that you won’t receive the full value of your gold as a loan. Banks offer up to 75% of the market value of your gold as a loan. This provides a safety margin for lending institutions in case the price of gold decreases.
If you’re planning to take out a gold loan and want to know which bank offers the best interest rates, we’ve made the comparison easier for you. Here’s a breakdown of the monthly EMI for a ₹5 lakh gold loan over two years from different banks.
HDFC Gold Loan Interest Rate 2024
HDFC Bank offers an interest rate of 8.5% on a ₹5 lakh gold loan for two years, resulting in a monthly EMI of ₹22,568.
Indian Bank Gold Loan Interest Rate
Indian Bank offers an interest rate of 8.65% on a ₹5 lakh gold loan, with a monthly EMI of ₹22,599, slightly higher than HDFC Bank.
Union Bank of India Gold Loan Interest Rates 2024
Union Bank of India offers an interest rate of 8.7%, leading to a monthly EMI of ₹22,610 for a ₹5 lakh loan.
Bank of India Gold Loan Interest Rates 2024
Bank of India offers an interest rate of 8.8%, with a monthly EMI of ₹22,631 on a ₹5 lakh loan.
Canara Bank Gold Loan Interest Rate 2024
Canara Bank and Punjab National Bank both offer an interest rate of 9.25% on a ₹5 lakh gold loan, resulting in a monthly EMI of ₹22,725.
Bank of Baroda Gold Loan Interest Rates 2024
Bank of Baroda charges an interest rate of 9.4%, with a monthly EMI of ₹22,756 on a ₹5 lakh gold loan for two years.
Also read: Need a Loan? Try These 5 Simple Tips to Get a Cheap Loan
SBI Gold Loan Interest Rate 2024
SBI offers an interest rate of 9.6% on a ₹5 lakh gold loan for two years, leading to a monthly EMI of ₹22,798.
ICICI Bank Gold Loan Interest Rates 2024
ICICI Bank charges an interest rate of 10%, with a monthly EMI of ₹22,882 on a ₹5 lakh gold loan for two years.
Axis Bank Gold Loan Interest Rate 2024
Axis Bank charges a higher interest rate of 17% on a ₹5 lakh gold loan, resulting in a monthly EMI of ₹24,376, which is significantly higher than other banks.
If you’re considering taking out a gold loan, it’s important to compare the interest rates and monthly EMI from different banks before making a decision. This will help ensure that the gold loan doesn’t become a financial burden.