With lower interest rates and a hassle-free application process, gold loans are rapidly gaining popularity among borrowers. Unlike conventional bank loans, customers have to pledge their gold as collateral in exchange for cash. The loan amount is calculated based on the quality and quantity of gold pledged. Banks provide gold loans with minimal documentation and offer several repayment options to suit the borrower’s needs.
If you’re considering a gold loan, check out our list of the top 10 banks offering the lowest interest rates:
HDFC Bank offers a gold loan with interest rates ranging from 7.20 per cent to 11.35 per cent and a processing fee of 1 per cent.
Kotak Mahindra Bank provides gold loans with interest rates ranging from 8 per cent to 17 per cent, along with a processing fee of 2 per cent plus GST.
Union Bank offers gold loans with interest rates between 8.40 per cent and 9.65 per cent.
Central Bank of India offers gold loans with interest rates between 8.45 per cent and 8.55 per cent, along with a processing fee of 0.5 per cent of the loan amount.
Uco Bank provides gold loans with interest rates at 8.50 per cent, and a processing fee ranging from Rs 250 to Rs 5,000.
SBI provides gold loans with interest rates at 8.55 per cent and a processing fee of 0.50 per cent plus GST.