July 28, 2021

SBI Gold Loan – Everything to Know

SBI Gold Loan is offered with loan amount up to Rs.50 lakh and interest rate at 7.30% p.a. The repayment tenure is up to 3 years with processing fee charged at 0.25% of the loan amount.

SBI Gold Loan
Interest Rate 7.30% p.a. onwards 
Loan Amount Up to Rs.50 lakh 
Loan Tenure Up to 3 years 
Processing Fee 0.25% of the loan amount + GST 

Features of SBI Gold Loan

SBI Gold Loan comes with a host of attractive features, some of which are mentioned below.

  • Flexible loan amount – One can avail loans between Rs.20,000 and Rs.50 lakh.
  • Flexible repayment tenure – The loan can be repaid through EMIs, with the maximum period ranging between 12 months and 36 months.
  • Flexible loan repayment modes – A customer can use gold loan, liquid gold loan, or bullet repayment gold loan methods to make payments for their SBI Personal Gold Loans. 
  • Security – Gold items provided as security are returned on repayment of loan.
  • Fast approval – This loan is easy to avail, with quick approval and minimal documentation. 
  • Low processing fee – SBI charges a processing fee of 0.25% of the loan amount.
  • Prepayment – Borrowers can choose to prepay their loan, with no prepayment charges levied by SBI. 

SBI Gold Loan Interest Rates 

Interest rates for SBI Personal Gold Loan Scheme range between 7.30% p.a. and 7.50% p.a., with SBI having the sole discretion to change or modify rates. Borrowers are expected to check the current prevailing rates before applying for a loan.

Eligibility Criteria

Individuals who wish to avail a loan under this Gold Loan scheme need to satisfy a few basic eligibility criteria.

  • Age – A borrower should be at least 18 years old in order to qualify for this scheme.
  • Income – An applicant should have a steady source of income. He/she could be employed in any profession, having sufficient means to repay the loan.

Documents required for SBI Gold Loan

  • ID Proof – A valid, government approved ID Proof (PAN card, DL, Voter’s ID, etc.)
  • Address proof – A valid, government approved address proof (Utility bill, Passport, DL, etc.)
  • Photographs – Two passport size photographs of applicant
  • Form – Duly filled and signed application form

The following documents have to be provided to the bank at the time of disbursement of the loan amount:

  • Arrangement Letter
  • Gold Ornaments Take Delivery Letter
  • DP Note
  • DP Note Take Delivery Letter

Fees and charges

Unlike other banks, SBI charges a nominal fee to process an application, with this amount depending on the quality of gold offered as collateral.

SBI charges a processing fee of 0.25% of loan amount, subject to a minimum of Rs 250 and no processing fee if applied through YONO.

*Note: Applicants will have to pay the applicable GST along with the processing fee.

How SBI compares with other lenders?

Fees and charges SBI Gold Loan HDFC Bank Gold Loan Axis Bank Gold Loan ICICI Gold Loan 
Interest rate 7.30% p.a. onwards 8.95% p.a. to 17.20% p.a. 12.50% 17.50% p.a. 10% p.a. – 19.76% p.a. 
Processing fee 0.25% + GST 1% + GST 1% + GST 1% of the loan amount 
Foreclosure charges N/A 1% of the outstanding loan amount 0% – 2% of the loan amount 0% – 1% of the outstanding principal amount 
Penal Interest N/A N/A 2% of the overdue amount per month N/A 


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