Gold loans are one of the most sought-after instruments to finance personal and professional financial requirements. This financing option comes with no end-use restriction and is also easy to obtain. Additionally, upon meeting the eligibility, you can obtain a substantial loan corpus, which will help you meet your big-ticket financial needs.
If you are looking for gold loans at competitive rates, you can consider approaching Kotak Mahindra Bank. Kotak Mahindra Bank Gold Loan comes with easy eligibility parameters and the application process is extremely convenient and hassle-free.
Read to know more about the gold loan offered by Kotak Mahindra Bank.
Here is a tabular representation of the key points to remember regarding Kotak Mahindra Bank Gold Loan:
Loan amount |
|
Loan tenure |
Up to 48 months |
Interest rate |
8% - 17% depending on the purpose of borrowing |
LTV ratio |
65% - 75% |
Note that these rates in the table are indicative and may change at the discretion of the bank. You must always have a clear discussion with the lender before opting for a loan.
Kotak Mahindra Bank offers gold loans under three schemes. The interest rate levied is solely at the discretion of the bank. Presently, the rate of interest varies from 8% to 17.00 % p.a, which is subject to change.
Interest has to be paid monthly/quarterly/half-yearly, depending on the chosen schemes, whereas the principal amount is to be paid at the time of maturity.
When obtaining a Kotak Mahindra Bank Gold Loan, it is essential to have clear knowledge regarding the loan interest rate and associated charges. This is because additional fees and charges can significantly affect the cost of borrowing.
Here is a tabular representation of Kotak Mahindra Bank Gold Loan fees and charges:
Processing fee |
2% of loan amount + GST |
Stamping charges |
As per the state’s Stamp Act |
Documentation charges |
NIL |
Credit appraisal charges |
Minimum – Rs.350 Maximum – Rs.1,500 (based on the number of ornaments) |
Credit administration charges |
NIL |
Collection charges |
Maximum 30% of the overdue amount |
Overdue interest |
3% of the overdue amount (compounded monthly) |
Swap charges |
Up to Rs.500 |
Dishonour charges |
Rs.750 |
Foreclosure charges |
For bullet loan – 2% + GST if closed within 6 months EMI loan – 2% + GST if closed within 9 months |
No due certificate |
NIL – Rs.50 |
Charges for CIBIL report |
Rs.50 + service tax |
https://www.kotak.com/en/personal-banking/loans/gold-loan/fees-and-charges.html
Note that the fees and charges mentioned above are for reference and might change at the discretion of the bank.
The process to obtain a gold loan from Kotak Mahindra Bank is extremely convenient. You need to fill in an online application form by following these steps:
Visit the official website of Kotak Mahindra Bank and navigate to the ‘Gold Loan’ page.
Enter a few basic details, such as your name, contact details and city name.
Agree to the terms and conditions and click on ‘Apply Now’.
After following these steps, a bank representative will get in touch with you regarding further steps and documentation process.
You can choose to repay your Kotak Mahindra Bank Gold Loan through any of the following ways:
Under this option, you can repay the interest component of your loan either quarterly, half-yearly or yearly. You can repay the principal amount at the end of tenure.
You can also repay your gold loan through the bullet repayment scheme, which allows you to repay the corpus (comprising of the interest and principal) in a single lump sum at the end of tenure.
Before proceeding with Kotak Mahindra Bank Gold Loan, it is essential to compare the interest rates offered by different banks and financial institutions across the country.
The below table will help you draw a comparison between gold loan interest rates:
Name of Bank/NBFC |
Max. loan amount |
Interest rate |
ICICI Bank |
Rs.1 Crore |
Starting from 11% |
Axis Bank |
Rs.25 Lakhs |
Starting from 13.5% |
State Bank of India |
Rs.50 Lakhs |
Starting from 7.3% |
Punjab National Bank |
Rs.10 Lakhs |
Starting from 8.75% |
Bajaj Finserv |
Rs.2 Crores |
Starting from 9.5% |
HDFC Bank |
Rs.1 Crore |
Starting from 6.5% |
Indian Bank |
Rs.10 Lakhs |
Starting from 8.25% |
Canara Bank |
Rs.35 Lakhs |
Starting from 7.25% |
IndusInd Bank |
Rs.20 Lakhs |
Starting from 8.75% |
Bank of Baroda |
Rs.50 Lakhs |
Starting from 7.75% |
For an in-depth comparison, you can consider visiting Bajaj Markets. This will help you draw a detailed comparison between different lenders and choose the one that best suits your requirements.
Apart from assessing the interest rate and maximum loan amount, consider checking the additional fees and charges too. This is because such associated charges can have a substantial impact on your overall cost of borrowing.
Kotak Mahindra Bank approves the gold loan quickly within four hours.
Under the bullet repayment scheme, the loan tenure is 12 months. However, you can renew the loan term for 24 months by submitting the same loan documents with a renewal form.
You can provide gold jewellery or bank minted coins as collateral to obtain a gold loan from Kotak Mahindra Bank.
The gold loan rate per gram as of now is Rs.3,000. Thus, your total loan amount will depend on this amount.
You can contact the bank for application status tracking. Alternatively, you can also visit the nearest branch to get more details.
You can visit the official Kotak Mahindra Bank website and click on ‘Make a Payment’ to pay your interest online.