Gold Loan: Bank Interest Rate Comparison and EMI?

Gold loans can be a suitable option for those who need immediate cash without selling their assets. It is easy to avail of the loan and requires less documentation and faster approval, making it more popular than other loan options.

Gold Loan Interest Rate Comparison

You do not get the full value of your gold for a gold loan. Usually, banks offer loans up to a maximum of 75 per cent of the market value of your gold. This provides banks with a safety margin, especially when gold prices fall.

Gold Loan Interest Rates and Monthly EMI (2024)

1. HDFC Bank: Offers 8.5% interest rate on gold loan of Rs 5 lakh. The monthly EMI on this will be Rs 22,568.
2. Indian Bank: With an interest rate of 8.65%, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,599, which is slightly higher than HDFC Bank.
3. Union Bank of India: With an interest rate of 8.7%, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,610.
4. Bank of India: With an interest rate of 8.8%, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,631.
5. Canara Bank and Punjab National Bank: Both with an interest rate of 9.25%, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,725.
6. Bank of Baroda: With an interest rate of 9.4%, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,756.
7. SBI: With a 9.6% interest rate, the monthly EMI on a gold loan of Rs 5 lakh will be Rs 22,798.
8. ICICI Bank: With a 10% interest rate, the monthly EMI on a loan of Rs 5 lakh will be Rs 22,882.
9. Axis Bank: With a 17% interest rate, the monthly EMI on a gold loan of Rs 5 lakh will be Rs 24,376, which is quite high compared to other banks.

Conclusion

If you are considering a gold loan, it is important to compare the interest rates and monthly EMIs offered by different banks. This will help you choose the most suitable option and the loan will not put too much burden on your financial situation. Make your financial decisions based on well-thought and accurate information so that you can maintain financial balance.

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