The demand for gold loan will increase rapidly, know which banks are giving loans at what rate

Gold Loan: Gold prices have risen due to positive factors for the global precious metal market. Yesterday gold was quoted at Rs. 76000 per 10 grams in Ahmedabad. The rise in gold is a good sign for those seeking gold loan. Because, due to increase in prices, borrowers will be able to get more loan on gold.

Loans are often taken against gold to meet financial needs quickly with less documentation. According to RBI data, Rs. 46971 crore was allocated under gold loans in 2020. Which will continue to grow by almost doubling to Rs. 80617 crore by September 2022. The gold loan market is growing at a rate of 22.7 percent in the financial year 2022-23. Many public and private banks and financial institutions are offering gold loans at different rates.

Gold Loan Interest Rates

Private sector bank HDFC Bank is charging 8.5 percent interest on a gold loan of Rs. 5 lakh for two years. In which an EMI of Rs. 22568 will have to be paid on a monthly basis. Indian Bank is allocating a gold loan of Rs. 5 lakh for two years at a rate of 8.65 percent. In which an EMI of Rs. 22599 will have to be paid on a monthly basis. Union Bank of India is allocating loans at a rate of 8.7 percent. On a gold loan of Rs. 5 lakh for two years, an EMI of Rs. 22610 is charged. Bank of India is allocating a gold loan of Rs. 5 lakh for a period of two years at 8.8 percent. In which an EMI of Rs. 22631 can be paid every month.

Gold loan interest rates for two years in different banks