SBI Gold Loan: All You Need to Know

Gold has become an indispensable component in every Indian’s life. Apart from playing an intrinsic role in festivities and celebrations, gold is one investment which offers financial liquidity. It is easy to avail a loan by pledging Gold. SBI, one of the largest and oldest banks in India, offers its patrons a unique product, the SBI Personal Gold Loan, through which they can avail a loan against their gold ornaments/coins. The SBI Gold Loan can be used to meet any personal financial requirement, with easy repayment options available.

Any type of loans, including the Gold loan, brings along with it the added pressure of paying premiums and interests. SBI has always been a customer centric bank and carrying forward its rich banking traditions, it has designed the SBI Gold Loan interest rates in a way which would completely be comfortable to its customers.

The SBI Gold Loan interest rate range between 10.25% per annum and 17.65% per annum, with SBI having the sole discretion to change or modify rates. However customers are requested to check the current prevailing rates before applying for a loan.

The SBI Gold Loan EMI depends upon loan amount, interest rate and loan tenure.

  • Loan Amount: SBI Gold Loan amount ranges from Rs. 20,000 to Rs. 2,000,000. High loan amount leads to high amount of EMI
  • Rate of Interest: SBI gives Gold Loan at an interest of 13.05%. Lower the rate of interest, lower will be your Gold Loan EMI
  • Loan Tenure: Tenure of Gold Loan depends upon the borrower’s current age and his retirement age. SBI offers Gold Loan for a minimum tenure of 3 months up to 36 months. Higher the loan tenure, lesser will be the EMI


Customers can now know how much EMI they would have to pay by using a simple SBI Gold Loan EMI Calculator.


The Gold Loan EMI Calculator designed by SBI uses the below mentioned formula.


P is the principal loan amount;  

r is the rate of interest payable per month (calculated as rate of annual interest/(12*100)

n is the loan tenure per month.

Eligibility factors to avail an SBI Gold Loan


An Individual should be minimum 21 years of  age before he can apply for the gold loan. Applicant must prove to the bank that he/ she has the sufficient income required to repay the loan amount. For security requirements, the applicant must provide security in the form of gold.


The Customers should support their SBI Gold Loan application with the following supportive documents.


  • D Proof – A valid, government approved ID Proof (PAN card, DL, Voter’s ID, etc.)
  • Address proof – A valid, government approved address proof (Utility bill, Passport, DL, etc.)
  • Photographs – Two passport size photographs of applicant
  • Form – Duly filled and signed application form



Why choose SBI Gold Loans?

The SBI Gold Loans come with lot of benefits and features, making it the first choice for customers seeking Gold Loans. The features are listed below.

  • High loan amount – One can avail loans to the tune of Rs 20 lakhs under the SBI Gold Loan scheme, subject to the gold quantity pledged.
  • Flexible repayment – The SBI Gold Loan can be repaid through EMIs, with the maximum period ranging between 30 and 36 months.
  • Security – Gold items provided as security are returned on repayment of loan, ensuring one does not lose out on them.
  • Fast approval – The SBI Gold Loan is easy to avail, with quick approval and minimal documentation.
  • Low processing fee – SBI charges a low fee to process the loan, making it light on the pocket of a borrower.
  • Prepayment – Borrowers can choose to prepay their loan, with no prepayment charges levied by SBI.


SBI Gold Loan – Frequently Asked Questions

What is the margin on a SBI Personal Gold Loan?

25% margin is applicable on this gold loan.

What is the minimum amount I can borrow against my gold?

The minimum loan amount offered under this loan scheme is Rs 20,000.

How can I avail this loan amount?

Loans can be availed either in the form of an overdraft or a demand loan.

Are the repayment tenures different for Demand Loans and Overdrafts?

A Yes, a demand loan has a maximum repayment tenure of 30 months, while it is 36 months for an overdraft.

When does the repayment process begin?

The repayment process begins immediately, with a borrower expected to pay EMIs a month after the loan has been sanctioned. For example, if the loan was availed in January, loan repayment should begin by February.


Why to take Gold Loan from SBI?

SBI offers Gold Loan at lower rate of interest i.e. at 10.25% with the lowest EMI of Rs. 3,238 per lakh which is lesser than many other banks. In case the EMI you are paying is more than this then you can opt for balance transfer and relocate your Gold Loan to SBI.

Are there any processing charges on SBI Gold Loan?

SBI asks for a processing fee of with applicable service tax.

Q. Are there any prepayment charges on SBI Gold Loan?

A  SBI offers Nil prepayment charges on Gold Loan.