SBI offers a variety of loans, including personal loans, home loans, auto loans, and gold loans. The largest public bank recently revised its gold lending rates. The lowest interest rate is now 8.25%. An additional concession of 0.75% will be available until September 30, 2021. Thus, the interest rate will be 7.50% if applied online until September 30. SBI Gold Lending Services can be accessed through YONO SBI Portal with less paperwork and less processing time, easier and faster.
How to apply via YONO?
Like any other loan application, to apply for an SBI gold loan, the client will need to log into the YONO portal – then go to the menu and select the loans option (third option). The last option will appear as – gold loan. After selecting this option, “Apply Now” will appear on the page. Now, the online application form will include a few drop-down lists such as – Type of residence, Type of profession and Net monthly income. Now the form will need to be filled out with details such as type of ornament, quantity, exact karat of gold, and net weight of gold.
After having filled in all the information, the client must physically go to the agency with the ornament to be pledged, 2 photos and the KYC documents.
SBI has set the maximum loan amount at Rs. 50.00 lakhs and minimum loan amount at Rs. 20,000. The processing fee for the service 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 (12 months in case of Bullet Repayment Gold Loan).
Gold lending options at other banks
Along with SBI, there are other banks that offer gold lending services. Some banks currently offer better interest rates than SBI. Punjab and Sind Bank offer it at 7%, Bank of India offers it at 7.30% and Canara Bank offers it at interest rates of 7.35% for Rs. 5 lakhs loan with a duration of 3 years. These are the 3 lowest interest rate options currently available in India.
Non-bank financial corporations (NBFCs) also offer gold loans but their rates are higher than public sector banks. Usually their interest rates start at 9.12%.
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Article first published: Wednesday August 11, 2021, 8:05 p.m. [IST]