5 of the Leading Financial Institutions That Offer Gold Loans in India

Gold loans are a popular financing option in India. These offer quick access to cash at competitive rates. Here, you simply need to submit your gold as collateral to borrow the required amount. This helps you retain the ownership of your asset while enjoying its value. With multiple lenders offering these loans, choosing the right lender can be daunting. Let’s look at 5 leading financial institutions in India that offer loans against gold.

1. Muthoot Finance

Muthoot Finance is arguably one of the most recognised names in India’s gold loan industry. It was established in 1997 and has a vast network of over 6,100 branches spread across the country. Muthoot Finance offers convenient and accessible loan options to Indians. Here’s a breakdown of Muthoot Finance’s gold loan offerings:

• Loan amount starts from ₹1,500 and has no maximum limit (subject to gold value)
• Interest rates starting from 10.50% p.a.
• Loan tenure of up to 12 months
• Online application process available
• Free insurance for the gold deposited

2. Manappuram Finance

Established in 1949, Manappuram Finance has a strong presence in the gold loan industry. The company has been in the industry for over 75 years and specialises in gold loans. It offers low interest rates and a streamlined application process. This has made it a popular choice for borrowers across India. Here’s a closer look at Manappuram Finance’s gold loan offerings:

• Loan amount ranging from ₹1,000 to ₹1.5 Crores
• Interest rates starting from 9.90% p.a.
• Loan tenure of 12 months
• Free insurance cover for the deposited gold
• Doorstep gold loan services
• No extra charges
• Round-the-clock customer support for inquiries

3. State Bank of India (SBI)

SBI, India’s largest public sector bank, also offers gold loans at attractive interest rates. They leverage their extensive branch network and reputation to provide a reliable option. SBI offers a convenient online application process for quick loan approvals. Here’s a summary of SBI’s gold loan offerings:

• Loan amount ranging from ₹20,000 to ₹50 Lakhs
• Interest rates starting from 8.75% p.a.
• Loan tenure of up to 36 months
• Transparent loan processing and repayment structure

4. Bajaj Finserv

Bajaj Finserv, a leading non-banking financial company (NBFC), has emerged as a strong contender in the gold loan market with a wide reach. It offers low interest rates, flexible loan structures, and more. Here are details of a Bajaj Finserv Gold Loan that you should know about:

• Loan amount ranging from ₹5,000 to ₹2 Crores
• Interest rates starting from 9.50% p.a.
• Loan tenure of up to 12 months
• Extensive branch network for convenient loan processing and gold valuation
• Option for part-release of gold jewellery with partial loan repayment
• Flexible repayment options catering to diverse needs
• Free insurance on the gold deposited
• Zero prepayment and foreclosure charges

5. Axis Bank

Axis Bank offers gold loans at low interest rates and convenient repayment options. Its focus on digitalisation makes it simple and easy to manage your loans online. Here’s a closer look at Axis Bank’s gold loan offerings:

• Loan amount ranging from ₹25,001 to ₹40 Lakhs
• Interest rates starting from 17% p.a.
• Loan tenure of 6 to 36 months
• Disbursement of funds within just 60 minutes
• Flexible repayment options including interest-only payments initially
• Secure storage of the gold submitted as collateral in high-security vaults
• After completing 6 months of loan tenure, pay zero prepayment and foreclosure charges

Factors to Consider When Choosing a Gold Loan Provider

Choosing the right lender depends on your specific needs and priorities. Here are some key factors to consider:

• Loan Amount Required: Compare the loan amount offered by each institution. Ensure that it aligns with your requirements. Consider the loan-to-value (LTV) ratio. This ratio shows the amount you can borrow against the current market value of your gold.
• Interest Rates: Compare the interest rates offered by different lenders. Remember that advertised rates might not be the final rate offered. Inquire about additional fees and processing charges.
• Loan Tenure: Consider the repayment period offered by each lender. Choose one that aligns with your financial situation and ability to repay comfortably.
• Eligibility Criteria: Ensure you meet the eligibility criteria set by each institution. This includes minimum age, gold purity requirements, and KYC documentation needs.
• Transparency and Fees: Opt for lenders with transparent loan structures and interest calculations. They must also have minimal hidden fees like processing charges or pre-payment penalties.
• Customer Service: Consider the lender’s reputation for customer service. Choose one with a reliable and responsive support system that addresses your inquiries and concerns with a quick response.
• Online Presence and Technology Integration: Compare the online application process. Also, check the various loan management tools available. Consider the mobile app functionalities offered by different lenders.

Gold loans can be a valuable financial tool when used strategically. Understand the different loan offerings, compare loan terms, and follow the tips we discussed. Compare these terms easily on digital marketplaces like Bajaj Markets. Simply, visit bajajfinservmarkets.in to get started. On such platforms, you can also access EMI and eligibility calculators. These help you gain better insights and select an offer that best suits your preferences.

Get a gold loan to meet your needs without compromising your financial security. Remember, responsible borrowing and timely repayments are crucial for a smooth borrowing experience.