When it comes to borrowing from a financial institution like a bank, other than availing a personal loan, one can also opt for a gold loans. If you are planning on taking a gold loan you can avail of it from banks like the State Bank of India (SBI).

The demand for gold loans has been strong amid the covid-19 crisis. The interest on gold loans varies, ranging between 7% and 29%. SBI Gold Loan can be availed by a pledge of gold ornaments including gold coins sold by banks with minimum paperwork and low-interest rate. In the current times, gold loans are the safest and easiest way to procure instant funds during an emergency.

SBI Gold Loan can be availed by pledge of gold ornaments including gold coins sold by banks.

According to a press release issued by SBI, one can avail a gold loan using the lender’s YONO platform. The press release stated that one can avail the gold loan at 7.5% interest rate till September 30, 2021, which is 0.75% concession on the prevailing interest rate.

Applying for gold loans via YONO SBI :

· Application for loan from the comfort of your home.

· Lowest interest rate at 8.25 percent (0.75 percent concession is available up to 30.09.2021)

· Less paper work

· Less processing time

· Less in-branch waiting

  • Login to your YONO account
  • On the home page, click on the menu (three lines) on the top extreme left
  • Click on loans
  • Click on Gold Loan
  • Click on Apply Now
  • Fill in ornament details ( type, quantity, Carat, and Net weight) along with all other details available in the dropdown ( Residential Type, Occupation Type), fill the Net Monthly Income, and submit the application

2) Visit branch with gold

Visit the branch with gold to be pledged, 2 photos, and KYC documents

3) Sign the document

4) Get a loan

Who can avail SBI Gold Loan?

Individuals over 18 years of age with a steady source of income including
Pensioners (No Proof of income required.

Loan amount

Minimum – ₹20,000

Maximum – ₹50 lac

Rate of interest

At present, SBI is offering gold loans to the customers at the lowest interest rate of 7.5%

Loan tenure

36 months (12 Months in case of Bullet Repayment Gold Loan- a product having no repayment obligation during the loan tenor)

Where to apply for this loan?

YONO

·SBI Branch

Foreclosure fee – The bank has also waived off the foreclosure charges and pre-payment penalty for customers

Gold price

On MCX, gold futures were down moderately at ₹47,888 per 10 gram. Global gold rates were subdued too

Best rate for gold loans

In gold loans, interest rates are an essential factor to consider as they vary widely. However, borrowers should look at other factors, too. For example, many lenders, like Punjab & Sind Bank, Canara Bank and Punjab National Bank, offer gold loans for up to one year. Some lenders, like Kotak Mahindra Bank and Bandhan Bank, offer gold loans for a tenure of up to four years and three years, re