When compared to other loan kinds, the interest rates on gold loans obtained by gold pledge range from 7.35% to 29% p.a. India's banks and other financial institutions provide gold loans with loan amounts ranging from 1500 to 1.5 crore rupees. These gold loans have repayment terms ranging from 7 days to 240 months.
Central Bank of India Gold Loan Interest Rate |
7.35% |
Amounts |
Rs. 1 crore |
Tenures |
20 Years |
Processing Charges |
0.5% + GST |
Below are some of the key characteristics of a gold loan-
Up to Rs.3 Lakh |
RBLR-0.65%=8.45% |
Above Rs.3 Lakh |
RBLR-0.55%=8.55% |
Axis Bank |
13.50% |
HDFC Bank |
11% |
Canara Bank |
7.35% |
SBI |
7% |
Kotak Mahindra Bank |
10% |
Muthoot Gold Loan |
12% |
These are the bank's top three gold loan schemes-
The loan is intended to cover urgent personal needs, including those related to healthcare, travel, education, marriage, etc. It could be used for agricultural purposes as well.
The facility is offered as a demand loan secured by jewelry made of gold guaranteed to the bank. Assets made of gold should be at least 22 carats pure. The most that can be pledged in gold coins is 50 grams per borrower. Only the bank's gold coins are accepted as collateral.
The beneficiaries of this Central Bank of India gold loan include individuals and farmers who engage in agricultural and related enterprises. Thus, the credit can only be used for agricultural purposes. Crop production needs or investing in particular needs are included.
The main facility is for short-term production credit, often known as CC/CKCC/OD or Demand Loan (single transaction). You have a year to pay the debt back. However, the duration for the Term Loan facility is up to 60 months.
People between the age criteria of 18 and 60 can apply for a Central Bank of India Business Gold Loan. The option is open to both new and returning clients. Individuals, partnerships, and proprietorship firms that are engaged in commercial activity are the qualifying consumers.
Therefore, the loan can only be utilized for business purposes. The loan ranges in size from 10,000 to 20 lakhs of rupees.
By visiting the lender's official website, selecting the appropriate form under the Cent Gold Loan area, and submitting your application, you can obtain a gold loan from the Central Bank of India.
It is available for download in both formats - word and pdf formats. Complete the form and include all required documentation. The application form and supporting documentation can then be submitted to the Central Bank of India branch that is the closest to you.
You can also go to the closest branch of the Central Bank of India with the required paperwork and gold as the pledged security. You will be contacted by a bank representative who will assist you with the gold loan application procedure.
You can phone the bank's local branch or use the toll-free number 1800 22 1911 if you have questions about the Central Bank of India's gold lending program.
The Central Bank of India will take gold jewelry such as gold anklets, gold necklaces, gold bracelets, and gold rings in order to provide a gold loan.
Gold must be between 18 and 22 carats in weight to be considered acceptable quality. A 24-carat gold ornament cannot be used to secure a gold loan.