IDBI Bank Gold Loan Interest Rate in 2024 | indiagold
IDBI Bank Gold Loan Interest rate
IDBI Bank Gold Loan Interest rate is 5.88% - 10% per annum. indiagold has an interest rate of just 9% per annum.
IDBI Bank Gold Loan per gram rate
IDBI Bank Gold Loan per gram rate is Rs ₹ 3,800 to ₹ 4,350. indiagold has per gram rate of ₹ ₹4,293 - ₹4,865
Loan Amount For IDBI Bank Gold Loan
Rs. 10,000 - Rs. 20 Lakhs
IDBI Bank Gold Loan Processing fees
Processing fees is upto 1% of the Total Gold Loan amount. At Indiagold processing fees for your gold loan is zero.
Getting a gold loan is a tedious and time consuming process, isn’t it? Well it turns out that we at IndiaGold have a solution for your problem. Now you can get Gold loans at your doorstep.
- 0.77%* Rate of Interest Per month (9.24% Rate on interest per year)
- Doorstep Gold Loan
- Money transfer in just 30 minutes*
- 100% Free Insurance on your gold
IDBI Bank Interest Rate Comparison with other banks
IDBI Bank Interest Rate Comparison with other banks
Axis Bank Gold loan interest rate
- Axis Bank Gold Loan interest rate is 17% p.a. to 19% p.a. for amount of Rs.25,001 to Rs.40 lakh
HDFC Bank Gold loan interest rate
- HDFC Gold Loan interest rate is 8.50% p.a. to 17.46% p.a. for amount of Rs.10,000 onwards
Muthoot Gold Loan interest rate
- Muthoot Gold Loan interest rate is 12% p.a. to 27% p.a. for amount of Rs.1,500 onwards
SBI Gold Loan interest rate
- SBI Gold Loan interest rate is 8.75 - 9.60% p.a. onwards for amount of Rs.20,000 to Rs.50 lakh
Kotak Mahindra Gold Loan interest rate
- Kotak Mahindra Gold Loan interest rate is 8.00% p.a. - 24.00% p.a. for amount of Rs.20,000 to Rs.1.5 cr
PNB Gold Loan interest rate
- PNB Gold Loan interest rate is 9.25% p.a. to 10.25% p.a. for amount of Rs.25,000 to Rs.10 lakh
Bank of Maharashtra Gold Loan interest rate
- Bank of Maharashtra Gold Loan interest rate is 9.30% p.a. for amount up to Rs.20 lakh
Manappuram Gold Loan interest rate
- Manappuram Gold Loan interest rate is 12.00% p.a. to 29.00% p.a. for amount (As per the requirement of the scheme)
Factors affecting Gold loan interest rates
Here are some of the key factors that can affect the interest rates on gold loans:
Credit score: Like any other loan, the credit score of the borrower plays a crucial role in determining the interest rate on a gold loan. A higher credit score indicates a lower risk of default and hence, the lender is willing to offer a lower interest rate. On the other hand, a lower credit score may result in a higher interest rate, as the lender perceives the borrower to be a higher risk.
Loan to value ratio: The loan to value (LTV) ratio refers to the amount of loan being offered as a percentage of the value of the gold being used as collateral. A higher LTV ratio indicates that the borrower is seeking a higher loan amount relative to the value of the gold being used as collateral. This may result in a higher interest rate, as the lender is taking on a higher risk by offering a larger loan.
Tenure of the loan: The tenure of the loan, or the length of time over which the loan is to be repaid, can also affect the interest rate on a gold loan. Longer loan tenures may result in lower interest rates, as the borrower has more time to repay the loan. On the other hand, shorter loan tenures may result in higher interest rates, as the borrower has less time to repay the loan.
Market conditions: The interest rates on gold loans may also be influenced by market conditions, such as the prevailing interest rates in the economy and the demand for gold loans. If the overall interest rates in the economy are high, the interest rates on gold loans may also be higher. Similarly, if there is a high demand for gold loans, the interest rates may be higher due to the increased competition among lenders.
Type of lender: The type of lender offering the gold loan can also affect the interest rate. For instance, banks may offer lower interest rates compared to NBFCs, as banks typically have a lower cost of funds and can offer loans at a lower margin.
Quality and purity of gold: The quality and purity of the gold being used as collateral can also affect the interest rate on a gold loan. Higher quality and purer gold may fetch a higher loan amount and result in a lower interest rate, as the lender perceives it to be a lower risk. On the other hand, lower quality and impure gold may result in a lower loan amount and a higher interest rate.
Repayment track record: The borrower's repayment track record can also influence the interest rate on a gold loan. A borrower with a history of timely loan repayment may be offered a lower interest rate, as the lender perceives them to be a lower risk. On the other hand, a borrower with a history of default or late repayment may be offered a higher interest rate.
In conclusion, the interest rates on gold loans can vary significantly depending on various factors such as the credit score of the borrower, the loan to value ratio, the tenure of the loan, market conditions, the type of lender, the quality and purity of the gold, and the borrower's repayment track record. Understanding these factors can help borrowers make an informed decision and choose a gold loan that is suitable for their needs and budget.
Features of IDBI Bank Gold Loan
Quick Processing
Because gold loans are secured by genuine gold, financial institutions can easily give them. Lending against gold is safer as financial institutions can quickly sell the gold if the borrower defaults. As a result, they typically disburse such loans within a few hours. Hence, processing times are reduced, resulting in more convenience for borrowers.
Although IDBI Bank requires you for a doorstep visit for availing for a gold loan, you can simply get a gold loan at your doorstep with IndiaGold. The amount will be transacted within 30 minutes after processing. Submit your Phone No below and our executive will call you ( Lead gen box)
Low Interest Rates
Gold Loans in general have lesser interest rates because gold is kept as collateral. IDBI Bank offers interest rates of 7.25%
With indiagold, you get gold loans at just 0.77%* interest per month ( 5.88% per year) In contrast, banks and other financial institutions give personal loans at 15% interest per annum.
Minimal Documentation
Gold loans require the least amount of documentation because secured collateral is already in place. With indiagold, you’ll just be required to fill up a form and your relationship manager will be there to help you through your gold loan journey.
Poor Credit History Doesn’t Matter
In most cases, the bank determines the loan amount based on the borrower's repayment capabilities and credit history. This is not the case with gold loans, though.
Because gold is used as collateral, lenders are confident in the repayment of the principal component and do not base their decision on the borrower's credit history.
IDBI Bank Gold Loan Repayment schemes:
Bullet repayment: Bullet repayment is a method in which you pay interest and principal amounts at the end of a gold loan. During the loan term, you are neither required to pay interest or principal; you make one final payment when your loan expires.
Overdraft Facility: This is a popular service for self-employed people, as the financial requirements of such business people are often variable. Through this service, you can withdraw money according to your own needs.
EMI Facility: By opting for this option, you can repay the interest amount as per the EMI schedule of the gold loan.
However, you will have to pay back the principal amount borrowed at maturity. This arrangement works wonders for most borrowers as throughout the loan tenure one is only liable for paying interest and not worrying about principal repayment.
IDBI Bank Gold Loan process:
The gold loan process is very similar to that of other secured loans. In this case, you take your gold items to a lender along with the necessary paperwork. The lender assesses the gold items and confirms the paperwork presented.
The lender approves the loan amount based on the evaluations. According to the loan agreement, you must repay the main amount and the interest amount to receive the pledged gold objects.
Benefits of IDBI Bank Gold loan
- Gold loans can be used to fund your child's education.
- It can be useful for expanding business or working capital requirements or to buy a home
- It can be used to buy machineries which can help to improve agriculture efforts
- It can also be used to get a loan at competitive rates with no collateral requirements
- Can be used to fund any urgent emergency needs
- Flexible usage: Gold loans can be used for any purpose and no restrictions on where you can use the money
- Less Paperwork: The entire process from loan application to disbursement, hardly any paperwork is required. At India Gold we disburse your loans in just 30 mins* of the process
How to pay your IDBI Bank Gold loan EMI?
There are several ways you can pay your IDBI Bank gold loan EMI (Equated Monthly Installment). Here are some of the options available:
- Online payment: You can pay your gold loan EMI online through the IDBI Bank website or through the bank's mobile banking app. You can make the payment using your debit card, credit card, or internet banking facility.
- Auto-debit: You can set up an auto-debit facility to automatically pay your gold loan EMI from your bank account. To set up this facility, you will need to fill out a mandate form and provide your bank account details to IDBI Bank.
- NEFT/RTGS: You can also pay your gold loan EMI through NEFT (National Electronic Funds Transfer) or RTGS (Real-Time Gross Settlement) by transferring the required amount from your bank account to the IDBI Bank account.
- Cash payment: You can also pay your gold loan EMI in cash at any of the IDBI Bank branches.
- Demand draft: You can pay your gold loan EMI by issuing a demand draft in favor of IDBI Bank and depositing it at any of the bank's branches.
- Cheque payment: You can also pay your gold loan EMI by issuing a cheque in favor of IDBI Bank and depositing it at any of the bank's branches.
It is important to make the gold loan EMI payments on time to avoid default and the associated consequences. If you are unable to pay the EMI on time due to unforeseen circumstances, you should contact IDBI Bank and explain your situation. The bank may be able to provide you with an EMI holiday or restructure the loan to make it more affordable for you.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
About IDBI Bank
IDBI Bank is a public sector bank in India that was established in 1964 as Industrial Development Bank of India. The bank was initially set up as a development financial institution to provide funding to various industrial sectors in the country. Later in 2004, it was converted into a full-fledged commercial bank.
Here is some detailed information about IDBI Bank:
Ownership and Management: IDBI Bank is a wholly-owned subsidiary of Life Insurance Corporation (LIC) of India, which acquired a controlling stake in the bank in 2019. The bank is managed by a Board of Directors and a Senior Management team headed by a Managing Director and CEO.
Branches and Network: IDBI Bank has a wide network of branches and ATMs across India. As of March 2021, the bank had 1,902 branches and 3,680 ATMs across the country.
Products and Services: IDBI Bank offers a range of banking products and services to its customers, including savings and current accounts, fixed deposits, loans, credit cards, insurance, and investments. The bank also provides various digital banking services, including mobile banking, internet banking, and phone banking.
Financial Performance: IDBI Bank has been facing financial challenges in recent years, with high levels of non-performing assets (NPAs) and losses. The bank reported a net loss of Rs 12,887 crore for the financial year 2020-21, compared to a net loss of Rs 12,515 crore in the previous year.
Merger with LIC Housing Finance: In August 2021, the Indian government approved the merger of IDBI Bank with LIC Housing Finance. The merger is expected to strengthen the balance sheet of both entities and create a larger, stronger financial institution.
Overall, IDBI Bank has a long history in India and provides a range of banking products and services to its customers. However, the bank has been facing financial challenges in recent years and is currently undergoing a merger with LIC Housing Finance to strengthen its position in the market.
Types of IDBI Bank Gold loan interest rates
- Fixed interest: The interest rate on such loans stays the same throughout the term of the loan.
- Reason of Lending: The interest rate on gold loans is often related to the motivation behind loaning. Banks normally offer lower rates of return for horticultural gold loans.
- Floating rate of interest: The rate of interest on a gold loan is not fixed and it keeps changing. In a gold loan, the EMI is related to the outside benchmarks that are decided by the bank. Since the rate isn’t fixed, the EMI on Gold credit might increase or decrease unexpectedly.
- Non Agricultural Gold loans: Non-agricultural gold loans are made to anyone who is not an agriculturalist. These loans are available to everyone, including salaried individuals, independently employed experts, financial specialists, ladies and females, housewives and students.
FAQs
Can we pay IDBI bank gold loan online?
If you're making monthly payments on your EMI, you can do so online through the bank's website or in person by visiting the branch.
What is IDBI Bank Gold Loan per gram rate?
Canara Bank Gold Loan Per Gram Rate of Today is ₹ 3000
How to pay IDBI bank gold loan online?
EMI repayment can be made online through the bank's portal.
At indiagold, you can pay EMIs via not only standing instructions or ECS, you can also use other modes of payment like UPI from Paytm, GPay, PhonePe, etc
What are the documents required when applying for a gold loan?
- Identity Proof - Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License
- Address Proof - Aadhaar Card, Voter ID, Passport, Driving License, Utility Bill (Phone/Gas/Electricity/Water/Broadband, etc.) / Lease Agreement of a local address that matches the address on your utility bill (in case your permanent address is different from your current residential address)
- Form 60 or PAN Card
- Passport size photograph
What type of gold do you accept for gold loans?
At indiagold, all forms of gold jewellery are accepted, provided it is 18K and above. No gold coins, biscuits, and bars are accepted. The value and purity of gold are measured and assessed by experts and trained valuers.
What are the consequences of missing a payment on a due date?
The interest rates are subject to jumping interest rates if a payment is missed due to unforeseen circumstances.
The consumer will also be contacted by the loan manager to discuss the problem. Hence, indiagold advises making timely payments to take advantage of lower interest rates.
