In view of the current situation, debt can prove to be better in meeting your financial needs. Most customers take gold loans only when they need money for a short period and there is no other option for financing. You can repay this loan with EMI or by spending overdraft in bank account and spend as per the need. The special thing is that it is also much cheaper than a personal loan.
Gold loans are generally considered to be collateral loans. The RBI’s decision to increase the debt and gold price ratio (LTV) by 31 March 2021 will make the role of CIBIL score important. Increasing LTV means that customers will be able to borrow up to 90 percent of their gold price from a bank or financial institution. Earlier this limit was 75 percent.
Through the table, you know which banks and financial institutions are offering gold loans at how much interest rate.
Banks / Financial Institutions Rate of interest
SB I 7.50 percent
SB I 7.65 percent
PNB 8.60 – 8.85
Bank of baroda 9.75 percent
ICICI Bank Starting at 11 percent
Axis Bank 15 percent
Bajaj Finserv Starting at 12 percent
IIFL Finance 9.24 – 24 percent
Muthoot Finance 11.9 – 25 percent
Manappuram Finance 12 – 29 percent