There will be relief in processing fees along with interest rates.
It is also easy for the bank to give gold loan. In this, the paperwork is completed by directly pledging the customer’s gold. For this, 0.5 percent of the total amount + GST is charged as processing fee. Along with this, the interest rate is quite low. The interest rate on gold loan usually starts from eight percent. According to bankbazaar.com, currently SBI Gold Loan (SBI Gold LoanThe interest rate on ) is between 8.70 to 9.80 percent. Whereas, Punjab National Bank (PNB Gold Loan) gives gold loan to the customer at 8.65 to 9.25 percent interest rate. You will easily get Kotak Mahindra Bank Gold Loan at interest rate of eight to 24 percent. HDFC Bank is offering you gold loan at 11 to 16 percent interest rate.