SBI Gold Loans can be obtained by sending the applicant's own gold, gold ornaments, or gold coins to SBI as security or collateral. On timely repayment of the loan amount, SBI can safely return the submitted collateral. The loan application process is easy, and loan approval and disbursement are both fast. SBI provides gold loans with lower interest rates. However, before applying for a jewellery loan, you can compare several banks and their deals. The interest rate on a personal gold loan from SBI starts at 7.50 per cent and goes up from there. The loan will be repaid in a period of up to three years, with a processing fee of about 0.25 per cent of the loan amount. The loan amount can range from 20,000 to 50 lakh rupees.
Features
The SBI Gold Loan has a number of attractive aspects, some of which are listed here.
- Loans ranging from Rs.20,000 to Rs.50 lakh are available.
- The loan can be repaid over time with EMIs, with a maximum repayment period of 12 to
36 months. - Customers can pay off their SBI Personal Gold Loans with gold loans, liquid gold loans,
or bullet repayment gold loans. - When the loan is repaid, the gold objects that were used as collateral are returned.
- This loan is simple to get, with fast approval and minimal paperwork.
- A transaction fee of 0.25 per cent of the loan amount is charged by SBI.
- SBI does not charge prepayment fees to borrowers who want to pay off their loans
early.
Interest rates and fees
SBI provides the lowest gold loan interest rate of 7.50 per cent. Existing SBI account holders receive the best gold loan rates relative to other customers. The maximum gold loan to value of gold jewellery ratio has been set by the RBI at 75 per cent. SBI, on the other hand, provides loans with lower LTVs. SBI charges a processing fee of 1% of the loan amount as a minimum. Prepayment of a gold loan is authorised by banks, and prepayment or foreclosure charges are usually zero. The interest rate on SBI Gold Loans varies depending on the scheme. Since the bank does not offer a separate SBI agriculture gold loan, there is no interest rate difference. You can, however, take out a gold loan to cover your agricultural-related expenses.
Since the beginning of the year, gold rates have been on a steady upward trend. Gold demand has been increasing, with the majority of it coming from jewellery and less from gold biscuits and coins. SBI provides a gold loan per gram of Rs. 2,501 to Rs. 3,056 based on gold rates today. The highest SBI gold loan cost per gramme is Rs. 3,056 for 22-carat jewellery estimated at a maximum LTV of 75%, and the average gold loan price for the last 30 days in 2021 is Rs. 4,528 for 22-carat.
Conclusion
You may apply for a gold loan directly with SBI by visiting a branch or filling out an online application form. SBI provides agricultural gold loans at a rate that is 1% to 2% lower than gold loan rates. SBI offers gold loans of up to 50 lakh rupees. Before applying for a loan, borrowers can review the existing interest rates. After your gold loan has been tested for weight and purity, you can expect fast processing. A delivery letter will be sent to you, detailing the number of gold ornaments, their weight, purity, and other pertinent details. Keep these records safe because they'll be required when the account is closed. A co-applicant is not necessary for securing an SBI Gold Loan.
