Fed Bank vs Muthoot vs ITI Gold
Fed Bank vs Muthoot vs ITI Gold
Gold loans are extremely popular in India due to a variety of reasons, like easier application process, quick disbursement, low interest rates, and many more. The loan has been a favourite for centuries, as it was earlier provided by participants in the unorganized sector like local money lenders, and jewellers. Now since the market has matured, many participants in the organized sectors have started providing gold loans. These include NBFCs like IndiaGold, and Muthoot Finance, ITI, and banks like Federal bank.
The entry of these players have made it a competitive space, and borrowers are often confused while comparing the gold loan offerings by these gold loan providers in India. In this article we will discuss the points that matter to a borrower while applying for a gold loan and this will prove to be the best gold loan comparison between the aforementioned lenders.
Fed Bank Gold Loans
Federal bank is among the top private banks in the country. The bank’s capability to efficiently cater to a large customer base while providing such a diverse set of products and services makes it stand out among the competition. The company’s gold loan offering is among the very best on offer in the industry. With a simplified gold loan offering and competitive charges structure, the bank is poised to do remarkably well in the gold lending space. Following is their gold loan offering explained in a tabular format, this may help you understand the fed bank gold loan benefits in simplified manner:
| Feature | Details | | ----- | ----- | | Interest Rates | Floating: From 8.99% p.a. Fixed: From 9.79% p.a. | | Loan Amount | ₹1,000 to ₹1.5 crore | | Loan Tenure | 1 year to 3 years | | Collateral | 22-carat gold ornaments | | Repayment Options | Lumpsum or EMI | | Processing Fees | General Gold Loan: ₹180 to ₹270 Digi Gold Loan: 0.25% of loan amount (Min ₹500) Kisan Gold Scheme: ₹530 to ₹1,700 MSME Gold Loan: ₹180 to ₹270 | | Appraiser Charges | Varies based on sanctioned limit; e.g., ₹140 for ₹25,000–₹50,000 | | Safe Custody Charges | Up to ₹25,000: Nil ₹25,000–₹3 lakh: ₹100 ₹3 lakh–₹5 lakh: ₹150 Above ₹5 lakh: ₹200 | | Security Operation Fee | OD-Digi-Gold & OD-Digi-Gold-NRI: Nil for first 2 operations/month Other Gold Loan schemes: ₹250 per operation | | Penalty for Delayed Repayment | Agri Gold Loans: 14.50% p.a. from due date Non-Agri Gold Loans: 16.50% p.a. from due date | | Gold Loan Schemes | General Gold Loan: For personal expenses; loan up to 75% of gold value Digi Gold Overdraft: Overdraft facility; loan up to 72% of gold value; features include ATM card, mobile banking, and free insurance Agri Gold Loan: For farmers; loan up to 90% of gold value MSME Gold Loan: For micro, small, and medium enterprises; loan up to 75% of gold value Fed Smart Saver Scheme: Bullet repayment option; lowest interest rate starting at 8.15% p.a. | | Eligibility | Individuals owning 22-carat gold ornaments Age Requirement : Between 18 years and 70 years | | Documents Required | Proof of Identity (Aadhar card, Passport, Voter ID, Driving License) Recent passport sized photograph Address proof (Aadhaar card, ration Card, Telephone/Electricity Bill, etc.) | | Gold Loan Rate Per Gram | General, MSME, and Non-Agri Gold Loans: Up to 75% of market value Agri Gold Loans: Up to 90% of market value |
Muthoot Finance Gold Loans:
Muthoot finance is one of the largest NBFCs in the country mainly providing loans in different categories. However, their forte is gold loans. The company has a remarkable track record in providing gold loans to the masses, this has been made possible due to the fact that the company has a long list of gold loans on offer each suiting to a different demography and the purpose for loan. Also, Muthoot’s presence in terms of branch network is almost unmatchable.
Muthoot gold loan product offering is quite extensive, and fares well in gold loan comparison amongst competing NBFCs.
They provide one of the best gold loan options in India and their product suite has been condensed in a simple tabular representation below:
| MUTHOOT FINANCE | Muthoot Finance Gold loan Interest Rates | Loan Amount | | ----- | ----- | ----- | | Muthoot One Percent Loan | 12% p.a. | INR 1,500 to INR 50,000 | | Muthoot Ultimate Loan | 22% p.a. With 2% rebate if 100% interest paid | Starting at INR 1,500 | | Muthoot Delight Loan | Lower Interest Rates offered | INR 50,000 to INR 5 crores | | Muthoot Mudra Loan | 11.9% p.a. | INR 1,500 to INR 1 lakh | | Muthoot Advantage Loan | 18% p.a. | INR 50,000 to INR 5 crores | | Muthoot High Value Plus | 14% p.a. | INR 1,90,000 to INR 5 crores | | Muthoot High Value Loan | 15% p.a. | Starting at INR 50,000 | | Muthoot Business Loan | 10.5% p.a. to 12.9% p.a. | INR 5 lakhs to INR 5 crores | | Best Value Scheme | 14% p.a. | INR 50,000 to INR 5 crores | | High Value Retention | 10.9% p.a. | INR 10 lakhs to INR 5 crores |
The Investment Trust of India - ITI Gold Loans:
The investment trust of India (ITI) is one of the top gold loan providers for low-interest rates gold loans. The company has been offering a wide range of products and services like lending, equity, commodity, and derivative trading, portfolio management services, mutual funds, IPO, investment banking, and other products in the financial markets since 1991, and entered the gold loans market in 2018. ITI gold loan schemes are pretty solid and fares well in comparison to similar offerings by the competitors.
Following is a summary of ITI’s gold loan product offering:
| Scheme Name | ITI Gold Loan Interest Rates (Monthly) | Interest Rate (Yearly) | Loan-to-Value (LTV) | Minimum Loan Amount | Processing Fee | Interest Mode | Tenure | Escalation | | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | | ITI व्यापारी-3 | 1.57% | 18.84% | 74% | ₹1,00,000 | N/A | Quarterly | 12 months | 5% | | ITI GOLD2 | 1.99% | 23.88% | 75% | ₹5,000 | ₹20 incl. GST | Monthly | 12 months | 3% | | ITI SURAKSHA3 | 1.75% | 21.00% | 75% | ₹10,000 | ₹20 incl. GST | Monthly | 12 months | 3% | | ITI LAKSHYA2 | 1.65% | 19.80% | 75% | ₹25,000 | ₹20 incl. GST | Monthly | 12 months | 4% | | ITI RACE2 | 1.55% | 18.60% | 75% | ₹50,000 | ₹20 incl. GST | Monthly | 12 months | 4% | | ITI ODMF | 1.50% | 18.00% | 75% | ₹3,000 | ₹20 incl. GST | Quarterly | 12 months | 2% | | ITI GROWTH | 1.35% | 16.20% | 75% | ₹75,000 | ₹20 incl. GST | Monthly | 12 months | 6% | | ITI POPULAR | 1.19% | 14.28% | 72% | ₹1,50,000 | ₹20 incl. GST | Monthly | 12 months | 8% | | ITI CUTE | 1.10% | 13.20% | 75% | ₹1,00,000 | ₹20 incl. GST | Monthly | 12 months | 9% | | ITI VIBES2 | 0.89% | 10.68% | 75% | ₹3,00,000 | ₹20 incl. GST | Monthly | 9 months | 10% | | ITI MUDRA3 | 0.89% | 10.68% | 73% | ₹5,00,000 | 1.50% + GST | Monthly | 9 months | 10% | | ITI STARTUP3 | 0.79% | 9.48% | 75% | ₹10,00,000 | ₹20 incl. GST | Monthly | 6 months | 12% | | ITI STARTUP2 | 0.55% | 6.60% | 75% | ₹3,00,000 | 0.50% + GST | Monthly | 6 months | 12% | | ITI KIRTI2 | 0.51% | 6.12% | 45% | ₹3,00,000 | 1.50% + GST | Monthly | 9 months | 12% |
| Feature | Details | | ----- | ----- | | Interest Calculation | Day-wise, based on 360-day year | | Gold Purity Accepted | 18 to 22 carat | | Maximum Loan Value | ₹6,369 per gram (as of 13/05/2025) | | Maximum Tenure | 12 months | | Processing Fee | ₹20 to 1.50% + GST, depending on scheme | | Grace Period | Available (subject to selected scheme) | | Minimum Interest | 7 to 30 days, as per selected scheme | | Interest Cap | 33% maximum |
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