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gold loan is a loan in which you pledge gold as collateral. It is one of the easiest ways to fulfil your financial requirements. It helps increase the liquidity of your gold articles to avail of a loan without any hassle. The disbursal time for gold loans is minimal, ranging from 2 hours to 2 days.  The gold loan tenure varies from bank to bank but on a general basis, it ranges between 7 days to 48 months.

What is the Maximum Tenure for Gold Loan?

Generally, the maximum tenure for a gold loan ranges between 12 months to 4 years depending on the conditions specified by the lender. The gold loan tenure also affects the gold loan interest rate levied on the principal loan amount.

 

Take a look at the following table:

Gold Loans

Rate of Interest

Maximum Tenure

Loan Amount

Manappuram Gold Loan

29%

24 months

Up to ₹1.5 crores

SBI Gold Loan

7.30% - 7.50%

36 months

₹20,000 to ₹50 Lakhs

HDFC Gold Loan

11% - 16%

24 months

₹25,000 onwards

Muthoot Gold Loan

12% - 27%

36 months

₹1,500 onwards

Axis Gold Loan

13.50%

36 months

₹25,000 to ₹25 Lakhs

Canara Gold Loan

7.35%

24 months

₹5,000 to ₹35 Lakhs

Bank of Baroda Gold Loan

9.00% - 9.15%

36 months

Up to ₹25 Lakhs

Karnataka Bank Gold Loan

8.49% - 8.79% (8.19% p.a. for Agri-based Gold Loan)

12 months

Up to ₹25 Lakhs

PNB Gold Loan

7.25% - 7.5%

36 months

₹25,000 to ₹10 Lakhs

India Infoline (IIFL)

9.48% - 27%

24 months

₹3,000 onwards

Kotak Gold Loan

10% - 17%

48 months

₹20,000 to ₹1.5 crores

Central Bank of India

9.05% onwards

12 months

₹10 Lakhs to ₹40 Lakhs

Indian Bank Gold Loan

7% onwards

36 months

Up to ₹75 Lakhs

IDBI Bank Gold Loan

7%

12 months

Up to ₹20 Lakhs

IndusInd Bank Gold Loan

10.00% - 16.50%

24 months

Up to ₹10 Lakhs

** The gold loan interest rates are subject to change as per the norms and policies of the lending institution. 

Long Term Gold Loan with EMI payments

Gold Loan EMI calculator helps in deriving budget-friendly EMI amounts. If you choose monthly instalments for the repayment of your gold loan, the EMIs you will have to pay depend upon the tenure of the loan. Generally, the minimum and maximum tenure of a gold loan is 12 months and 48 months respectively which implies that the number of monthly instalments also ranges between 12 and 48 months. 

You can repay the loan amount between the specified tenure as per your choice. Institutions do not charge any type of prepayment charges in case you wish to close the loan before the specified tenure. It is important to note that there might be penalties levied in case of instalment payment defaults. 

What is the Minimum Tenure for Gold Loan?

Generally, the minimum tenure for a gold loan ranges between 7 days to 12 months depending on the conditions specified by the institution. The tenure also affects the interest rate levied on the principal loan amount. 

 

Here is a list of a few institutions that offer gold loans and the minimum tenure they provide it for:

Gold Loans

Rate of Interest (p.a.)

Minimum Tenure

Loan Amount

Manappuram Gold Loan

29%

3 months

Up to ₹1.5 Crores

SBI Gold Loan

7.30% - 7.50%

-

₹20,000 to ₹50 Lakhs

HDFC Gold Loan

11% - 16%

3 months

₹25,000 onwards

Muthoot Gold Loan

12% - 27%

7 days

₹1,500 onwards

Axis Gold Loan

13.50%

6 months

₹25,000 to ₹25 Lakhs

Canara Gold Loan

7.35%

12 months

₹5,000 to ₹35 Lakhs

Bank of Baroda Gold Loan

9.00% - 9.15%

12 months

Up to ₹25 Lakhs

Karnataka Bank Gold Loan

8.49% - 8.79% (8.19% p.a. for Agri-based Gold Loan)

6 months

Up to ₹25 Lakhs

PNB Gold Loan

7.25% - 7.5%

3 months

₹25,000 to ₹10 Lakhs

India Infoline (IIFL)

9.48% - 27%

3 months

₹3,000 onwards

Kotak Gold Loan

10% - 17%

6 months

₹20,000 to ₹1.5 crores

Federal Gold Loan

8.50%

6 months

₹1,000 to ₹1.5 crores

Central Bank of India

9.05% onwards

3 months

₹10 Lakhs to ₹40 Lakhs

Indian Bank Gold Loan

7% onwards

6 months

Up to ₹75 Lakhs

IDBI Bank Gold Loan

7%

6 months

Up to ₹20 Lakhs

IndusInd Bank Gold Loan

10.00% - 16.50%

12 months

Up to ₹10 Lakhs

** The gold loan interest rates are subject to change as per the norms and policies of the lending institution. 

Conclusion

To sum up, it is clear that a gold loan is a useful option to satisfy monetary requirements in case of emergencies. You can easily use your gold articles to raise finances whenever required as the disbursal time is minimal. It is available for short as well as long tenure which makes it easy to repay. 

DISCLAIMER

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on Gold Loan Tenure

Usually, the maximum tenure of a gold loan is 4 years. In case you need a gold loan for a longer period than this, you must fulfil gold loan eligibility criteria of the lending institution.

Some banks as well as non-banking financial companies do allow the extension of the gold loan tenure. Contact your financial institution for more details on the same.

Usually, it is allowed to close a gold loan early. Banks and financial institutions do not levy any kind of charges on prepayment of the loan amount. You may contact the institution/bank regarding the same.

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