SBI Gold Loan- Scheme, Interest Rates on 12 April, 2024

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SBI Gold Loan

An In-depth Guide to SBI Gold Loan

If you’re in need of a secured loan with flexible repayment options and terms, the SBI Personal Gold Loan is worth considering. It’s a unique product offered by the State Bank of India that allows individuals to use their gold ornaments as collateral for a secured loan. In this article, we will delve deeply into its key features, eligibility, and processing fees to help you make an informed decision.

The SBI Gold Loan can be availed by the pledge of gold ornaments, including gold coins sold by banks. The best part about this type of loan is its straightforward process, minimal paperwork, and comparatively low-interest rates, making it easily accessible for a wide array of individuals.

The Fundamentals of SBI Gold Loan

As its name suggests, an SBI Personal Gold Loan is a type of secured loan where gold ornaments are pledged as security to the bank. The quality and quantity of the ornaments are duly verified for approval. This loan is highly advantageous for those who require immediate funding but do not wish to part with their gold assets permanently. It offers various tenures and repayment options, making it a flexible solution for diverse financial needs.

SBI Gold Loan

Loan Amount

With an SBI Personal Gold Loan, individuals can borrow a minimum amount of Rs 20,000 and a maximum amount of Rs 50.00 lacs. This range makes it suitable for a wide variety of purposes, whether it’s for a small-scale business expansion or planning an extravagant wedding.

Understanding the Gold Loan Margin Dynamics

Depending on the chosen repayment plan, the margin or the amount you’re required to pay upfront varies. Here’s a comprehensive breakdown:

  • Gold Loan (EMI based): 25%
  • 3 Months Bullet Repayment Gold Loan: 30%
  • 6 Months Bullet Repayment Gold Loan: 30%
  • 12 Months Bullet Repayment Gold Loan: 35%

Please note that under the Bullet Repayment options, no further appraisal of pledged gold is necessary at the time of two subsequent renewals, as long as the gold remains in the custody of the bank.

Understanding Processing Fees

SBI Personal Gold Loan’s processing fees structure is diversified based on the loan amount and the repayment choice you opt for. The details are as follows:

Loan AmountType of Gold LoanProcessing fee
Up to Rs.3.00 lacAllNIL
Above Rs.3.00 lac3 Months Bullet Repayment Gold LoanRs. 100+ GST
Above Rs.3.00 lac6 Months Bullet Repayment Gold LoanRs. 150+ GST
Above Rs.3.00 lac12 Months Bullet Repayment Gold Loan0.25% of loan amount subject to minimum Rs. 250 and maximum Rs. 5000+ applicable GST
Above Rs.3.00 lacGold Loan EMI based0.25% of loan amount subject to minimum Rs. 250 + applicable GST

Please note that in addition to the fees mentioned, gold appraiser charges will be borne by the applicant.

Eligibility for SBI Personal Gold Loan

In order to avail the SBI Personal Gold Loan, there are certain eligibility prerequisites that need to be met:

  • Age: The applicant should be 18 years and above
  • Profession: The loan is available to any individual, singly or jointly, who has a steady source of income. This includes Bank Employees and Pensioners as well. Please note that no proof of income is required.

Repayment Modalities

The repayment of the principal amount and the interest depends on the type of Gold Loan selected:

  • Gold Loan (EMI-based): Repayment commences from the month following the month of disbursement.
  • 3 Months Bullet Repayment Gold Loan: Both Principal and Interest are due at the end of the term.
  • 6 Months Bullet Repayment Gold Loan: Both Principal and Interest are due at the end of the term.
  • 12 Months Bullet Repayment Gold Loan: Both Principal and Interest are due at the end of the term.

The maximum repayment period varies with the type of loan. For instance, it ranges from 3 months for a Bullet Repayment Gold Loan to 36 months for an EMI-based Gold Loan.

Key Documents Required

Before Sanction

  • Gold loan application along with two passport-sized photographs.
  • Proof of Identity corroborated by proof of Address.
  • In the case of illiterate borrowers, a letter from a witness is required.

At the time of Disbursement

After the approval of your Gold Loan, delivery would be made through:

  • DP note and DP Note Take Delivery Letter.
  • Gold Ornaments Take Delivery Letter.
  • A signed formal Arrangement Letter.

Rate of Interest

The mean rate of interest for an SBI Gold Loan stands at 8.95%. However, the effective interest rate differs according to the chosen scheme:

SchemeMCLRSpreadEffective Interest Rate
Gold Loan EMI based1 year MCLR – 8.55%0.95%9.50%
12 Months Bullet Repayment Gold Loan1-year MCLR – 8.55%0.20%8.75%
3 Months Bullet Repayment Gold LoanThree Month MCLR – 8.15%0.55%8.70%
6 Months Bullet Repayment Gold LoanSix Month MCLR – 8.45%0.25%8.70%

Reach Out to SBI for More Information

If you need more information or want to apply for a gold loan from SBI, their contact centre is more than ready to assist you. Dial 1800-1234 or 1800-2100 for immediate assistance.

Alternatively, if you’re unable to dial in at the moment, provide a missed call on 7208933143 or send an SMS “GOLD” to 7208933145. This will ensure you receive a callback from their contact center at your convenience.

Official Website: SBI Gold Loan


The SBI Gold Loan is a viable option for individuals looking for a secured loan product. With its flexible margins, comprehensive loan amounts, and varied repayment plans, it’s tailored to meet a wide array of financial situations. Make sure to understand these features thoroughly to get the most out of this product.