There is nothing wrong with taking a gold loan if you suddenly need money. You get your gold back after repaying the loan amount. The good thing is that banks and NBFCs are offering gold loans at very attractive interest rates.
While personal loan interest rates are usually between 11% to 18%, gold loans are available at just 8% to 9%. This makes gold loans a cheaper option during emergencies. Another important point is that the RBI is keeping a close watch on gold loans. It is regularly making the rules stricter to protect the interests of gold loan customers.
Indian Bank: Gold Loan at Just 8% Interest
Indian Bank is offering gold loans at the lowest interest rate of just 8%. If you take a loan of ₹1 lakh, your monthly EMI will be ₹8,699. This is much cheaper compared to personal loans, which usually have higher interest rates.
Punjab National Bank: Gold Loan at 8.35%
Punjab National Bank (PNB), another government bank, is offering gold loans at 8.35% interest. For a ₹1 lakh loan, the monthly EMI will be ₹8,715. It’s a good option for people looking for low-interest loans.
Bank of India: Safe Loan with 8.6% Interest
Bank of India is also giving gold loans at an interest rate of 8.6%. Being a government bank, it is considered safe. If you take a ₹1 lakh loan, the EMI will be ₹8,727. This is still much lower than the EMI of a personal loan.
Canara Bank: Loan at 8.80% Interest
Canara Bank is offering gold loans at 8.80% interest. If you borrow ₹1 lakh, the monthly EMI will be ₹8,736. This interest rate is quite low compared to most personal loan options.
Union Bank of India: Gold Loan at 8.95%
Union Bank of India is offering gold loans at an interest rate of 8.95%. For a ₹1 lakh loan, the EMI will be ₹8,743 per month. It’s smart to take loans from government banks as their interest rates are usually lower than private banks.