SBI Gold Loan details and review
Avail a gold loan at low interest rate and minimal paperwork with India's largest bank.
Enjoy low interest rates and unlock up to ₹5,000,000 when you pledge your gold ornaments with the State Bank of India (SBI). Find out how the SBI gold loan works and if there are any fees you’d need to look out for before availing.
7.5% p.a. - 7.5% p.a.
₹20,000 to ₹50 lakh
3 months to 36 months
|Product Name||SBI Personal Gold Loan|
|Loan Amount||₹20,000 to ₹50 lakh|
|Age Eligibility||18 years and above|
|Required documents||Application for Gold Loan with two copies of photographs, Proof of Identity, Proof of Address, Witness Letter in case of illiterate borrowers|
|Bullet Repayment Scheme||Yes|
How does a gold loan from SBI work?
If you need urgent cash to tide through a financial emergency, you can easily avail SBI Gold Loan by pledging the gold ornaments that are sitting idle in your home at a low interest rate starting from 7.5% and zero processing charges. You’ll only need to complete a simple loan application with minimal paperwork and receive the cash in as fast as 24 hours.
Do note that while the gold may be acceptable in various forms (e.g. bars, coins, jewellery etc), its purity should be between 18 carats and 22 carats.
- Extensive branch network. With a base of over 27,000 branches, SBI is accessible in most Indian cities.
- Fast and transparent process. Enjoy a transparent loan application process from acceptance to disbursal, without any hidden fees and terms to look out for.
- Multiple repayment schemes. SBI offers three repayment options so that borrowers can choose one that’d help them manage and plan out their repayments better.
- Flexible loan tenure. The minimum tenor starts from 3 months to 36 months (except for bullet repayment scheme).
- Range of loan amounts. Loans starting from ₹20,000, up to the valuation of your gold ornaments or ₹5,000,000
- No prepayment penalties. Save on interest when you prepay the loan.
- Secure gold storage. Borrow with peace of mind as your pledged gold will be stored in a highly secure vault, guided by regulations from the Reserve Bank of India (RBI).
How do repayments work for an SBI gold loan?
SBI offers three different repayment schemes:
- EMI-based gold loan. With equated monthly instalments (EMI), you’ll be making a fixed repayment amount (which consists of both your principal and interest) every month over the specific tenure, until the loan is paid off in full.
- Liquid gold loan. This is an overdraft account with a transactional facility. This means that you’ll be offered a sanctioned credit limit (instead of a lump-sum cash amount) upon loan approval. You may withdraw from it whenever you require, and interest will only be charged for the amount withdrawn.
- Bullet repayment gold loan. You may repay both the principal and interest in a lump sum at the end of the loan tenure. The maximum repayment period for this scheme is 12 months.
Fees and limits
Bear in mind that you’d need to pay the following fees when you avail a gold loan with SBI:
- Interest rate. 0.50% above the 1-year MCLR (7.00% as of 21 April 2021)
- Processing fee. 0.50% of the loan amount (minimum Rs. 500), plus applicable GST.
- Gold appraisal charges. A nominal fee (indicated at the time of application) will be charged for the appraisal of your gold ornaments.
Compare a range of Gold Loans in India
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
With a simplified loan request process, instant approvals and attractive interest rate, it is no wonder why SBI is one of the most popular lenders for gold loans in India. It also has multiple storefronts located across India, making it easy for you to avail a loan with your gold jewellery/ornaments.
But unlike providers like indiagold, Rupeek and Muthoot Finance, SBI has yet to offer the convenience of on-the-spot evaluation of your gold assets at your location. This means that you’d still need to head down to the nearest SBI branch with your jewellery and documentations in tow.
How to apply for an SBI gold loan
To get started, simply head over to the SBI Personal Gold Loan website and click on the ‘apply now’ button. Fill in the online loan application form and an SBI representative will get in contact with you as soon as possible to advise on the next steps.
- At least 18 years old
- Both single and joint applications are allowed
- Had a steady income (although there’ll be no proof of income required)
Make sure to bring along the following documents when applying for the SBI Gold Loan:
- Duly filled gold loan application form, along with two copies of passport-sized photographs
- Proof of identity (such as passport, Voter ID, Aadhaar card etc)
- Proof of address (utility/telco bill, driver licence etc)
- Witness letter (only required for illiterate borrowers)