The largest public sector bank, the State Bank of India recently revised its gold lending rates with the lowest interest rate now at 8.25%. An additional 0.75% concession will be available until September 30, 2021. This will further reduce the interest rate to 7.50% if applied online through September 30.
You can access SBI gold lending services through the SBI YONO mobile app with less paperwork and less processing time, easier and faster. Due to the ongoing COVID-19 pandemic, demand for gold loans has been strong. Interest on gold loans ranges from 7% to 29%.
Gold loans are the safest and easiest way to get instant funds in an emergency. Gold loans are secured loans taken by the borrower from a lender instead of his gold ornaments or other gold objects as collateral. The loan amount in such cases is a certain percentage of the gold held as collateral – up to 80% depending on the current market value and quality of the gold.
The State Bank of India has set the maximum loan amount at Rs 50 lakhs and the minimum loan amount at Rs 20,000. The service processing fee is 0.50% of the loan amount in addition to the applicable GST. (Minimum Rs. 500 + GST applicable).
The gold appraiser fee will need to be paid by the loan applicant. The loan term is 36 months
How to apply for a gold loan through the SBI YONO app
Log into the YONO portal – then go to the menu and select the loans option (third option).
After selecting the gold loan option, “Apply Now” will appear on the page.
The online application form will come with drop-down lists such as – Type of residence, Type of profession and Net monthly income.
Fill out the form with details such as type of ornament, quantity, exact karat of gold, and net weight of gold.
Customers will have to physically visit the branch with the ornaments, 2 photos and KYC documents.