Akshaya Tritiya, also called Akha Teej, is one auspicious and holy day marked by the Hindu and Jain communities. Like any other festival, Akshaya Tritiya has many stories attached to it. It is believed that ventures initiated on this day bestow betterment and prosperity. The word in itself, Akshaya means eternal, something that does not diminish. Most people consider Akshaya Tritiya as the perfect chance to buy gold. The yellow metal is one of the traditional methods of investment among Indians. Hence, many banks and NBFCs offer attractive interest rates on gold loans, wherein the loan borrower pledges his or her gold in exchange of loan amounting to the market price of the gold.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Here are some banks and NBFCs, the interest rate and other features they offer on gold loans. Pick the best gold loan according to your needs this Akshaya Tritiya -

BANKS

State Bank of India:

With SBI, one is eligible for a gold loan at 18 years of age. SBI levies an interest rate of 10.55% on gold loans. The largest public sector bank offers its customers a minimum amount of Rs 20,000 and a maximum of Rs 20,00 lakhs as gold loan. The repayment period is maximum of 36 months according to SBI. The bank charges a processing fee which is 0.50% of the loan amount+GST.

HDFC Bank:

This private bank benefits its customers with gold loans starting from Rs 25,000. However, in the rural sector, the loan starts from the minimum amount of Rs 10,000. HDFC Bank charges its customers an interest rate of an average of 11.69%. The processing fee that one has to pay to avail the gold loan from HDFC Bank is 1.5% of the loan amount + GST. It also imposes valuation fees of Rs 250 for loans up to Rs 1.5 lakhs and Rs 500 for loans above the said amount. The repayment period is maximum of 48 months according to HDFC Bank.

ICICI Bank:

ICICI Bank levies 11% interest rate on their gold loans, wherein the minimum loan amount that ICICI offers to its customers is Rs 10,000, going up to Rs 15 lakhs. The bank charges 1% of the loan amount+GST as its processing charges and has a loan repayment tenure of maximum 12 months.

Bank of Baroda:

This bank gives out a minimum of Rs 25,000 and a maximum of Rs 10 lakhs as the amount for gold loans. BOB imposes an interest rate of 12.60% and has a loan tenure ranging between 12 months to 5 years, depending on the gold loan scheme the customer has applied for. The bank charges 0.50% of the loan amount+GST as the processing fee for the gold loan.

NBFCs

Muthoot Finance:

This NBFc which specializes in gold loans and gold schemes considers the following key factors before sanctioning the loan: Purity and net weight of gold used in jewelry, price of gold and loan to value ratio. Moreover, the customer needs to be at least 18-year-old. The NBFC levies an interest rate varying between 12% p.a to 26% p.a, which is subject to the loan amount and the repayment tenure. An individual can get a loan amount which is 75% of the market value of the gold. The maximum repayment tenure is 36 months for Muthoot finance. Muthoot, however, does not accept traded gold funds and mangal sutra.  

Manappuram Finance Limited:

Similar to Muthoot, Manappuram also considers the purity and net weight of gold, the price and loan to value ratio before agreeing to give out the lain. One needs to be minimum 18 years old to get a gold loan from Manappuram Finance. An individual can get a loan amount which is 75% of the market value of the gold with Manappuram. The NBFC levies an interest rate varying between 12% p.a to 28% p.a, which is subject to the loan amount and the repayment tenure. Manappuram too does not accept gold loans in exchange of gold bars, traded gold funds and mangal sutra.