Which bank is best for gold loan?

Gold Loan Interest Rates Comparison

Name of the Bank Interest Rate Loan Amount
Canara Bank Gold Loan 7.35% p.a. Rs.5,000 to Rs.35 lakh
Muthoot Gold Loan 12% p.a. to 26% p.a. Rs.1,500 onwards
SBI Gold Loan 7.00% p.a. onwards Rs.20,000 to Rs.50 lakh
Kotak Mahindra Gold Loan 10.00% p.a. – 17.00% p.a. Rs.20,000 to Rs.1.5 crore

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In this way, is gold loan is safe?

Not checking creditor’s credibility: A gold loan is a secured loan, which implies that it is protected by collateral (gold in this case). This collateral remains with the creditor or lender till the loan amount is completely paid off. … This is a good way to provide security to a creditor but what about the borrower.

Regarding this, what happens if gold loan is not paid? Gold is Auctioned

Since the gold has been pledged as collateral against the loan, failure to repay (three consecutive payments or more) will ultimately lead to the gold being auctioned off by the bank or the financial institution. This is now a non-performing asset and will be sold off for recovery.

Correspondingly, what is SBI gold loan rate?

SBI Gold Loan

Interest Rate Up to 7.30% p.a. onwards
Loan Amount Up to Rs.50 lakh
Loan Tenure Up to 3 years
Processing Fee 0.50% of the loan amount + GST subject to a minimum of Rs.500

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