Axis vs HDFC vs ICICI
The gold loans market in India has evolved remarkably over time. All thanks to modernization of the industry in the sense of streamlining of services and customer centric offerings, and the introduction of customer friendly regulations, and a heightened competition, in both organized as well as the unorganized lending market.
There are several NBFCs and banking sector companies that are offering extremely competitive gold loans. In the banking sector, there are many public as well as private sector banks who offer gold loans, some of the big players in the private sector banks include Axis bank, HDFC bank, and ICICI bank. These are one of the best gold loan providers in the space, along with some NBFC players such as IndiaGold.
Read along to know more about the offerings by the aforementioned private sector banks:
Axis Bank Gold Loans:
Axis Bank is one of the biggest and well known private sector banks in the country. The company was earlier known as UTI and was later rebranded as Axis. The bank is in multiple domains within the banking sector such as private banking, corporate banking, treasury, trade finance, and lending.
The bank offers gold loans at highly competitive rates, Axis gold loan offering, interest rates and gold loan charges schedule is as follows:
| Feature | Details | | ----- | ----- | | Loan Amount | ₹25,001 to ₹40,00,000 | | Gold loan Interest Rates | Axis bank gold loan rates stand at 17.00% p.a. (9.40% MCLR + 7.60% spread) | | Processing Fee | Gold loan fees for Axis Bank is 0.50% of loan amount (minimum ₹300 for loans up to ₹2 lakh) | | Foreclosure Charges | 2% of outstanding amount if closed within 0–6 months; NIL thereafter | | Valuation Fee | ₹500 to ₹1,500 | | Penalty Charges | 8% p.a. above applicable interest rate on overdue amount (max ₹1,00,000 per instance) | | Prepayment Charges | NIL | | Stamp Duty | As per applicable state laws | | Loan-to-Value (LTV) | Up to 75% of gold’s market value | | Repayment Options | Monthly interest + principal at maturity<br>- Equated Monthly Installments (EMIs) | | Tenure | 6 months to 36 months | | Disbursal Time | Same-day disbursal (within 60 minutes) | | Maximum Accounts per Customer | 5 accounts per Customer ID |
HDFC bank Gold Loans:
HDFC is one of the biggest banking groups and has recently ranked as the 10th biggest banking group in the world! The company boasts a huge branch network and an army of employees with robust experience across private, corporate banking, and lending.
The group’s vast customer base can prove to be an asset when it comes to cross-selling of their new products and services. Gold loans being one of the major contributors in their lending portfolio is a product in focus, the company is poised to gain traction and quickly improve their standing in the overall gold loan market.
Following is a summary of HDFC gold loan offering:
| Feature | Details | | ----- | ----- | | Loan Amount | ₹25,000 to ₹50,00,000 (₹10,000 in rural areas) | | Interest Rate | 9.30% to 17.86% p.a. (Average: 11.91%) | | Processing Fee | HDFC gold loan fees is kept at a maximum 1% of Disbursal Amount + Applicable Taxes | | Foreclosure Charges | 1% of outstanding principal + Applicable Taxes | | Valuation Fee | ₹250 (up to ₹1.5 lakh) or ₹575 (₹1.5 lakh to ₹10 lakh) per packet per loan | | Renewal Charges | ₹350 + applicable taxes | | Delayed Payment Penalty | 18% p.a. on overdue amount | | Prepayment Charges | 1% of outstanding principal | | Overdraft (TOD) Charges | 18% p.a. | | CIBIL Report Fee | ₹50 per report | | Stamp Duty & Statutory Charges | As per applicable state laws | | Legal & Miscellaneous Charges | As per actuals | | Auction Charges | As per actuals | | Loan-to-Value (LTV) | Up to 75% of gold's market value | | Repayment Options | Term Loan, Overdraft, Bullet Repayment | | Loan Tenure | 6 months to 42 months | | Disbursal Time | Within 45 minutes |
ICICI Bank Gold Loans:
ICICI is one of the oldest banking groups operating in India. The banking group has its presence in the banking, lending, broking and the insurance sector. With a big branch network and years of experience, the company is in a solid position to place itself as one of the top lenders in the gold loan market. If you compare gold loans offered by multiple lenders, their gold loan offering is highly competitive, with gold loan charges for ICICI being one of the best ones on offer.
Below is a comprehensive view of ICICI gold loan offering and the applicable gold loan fees and charges:
| Feature | Details | | ----- | ----- | | Loan Amount | Up to ₹2 crore | | Interest Rate | 9.15% to 18.00% p.a. | | Processing Fee | Up to 2% of loan amount plus applicable taxes | | Foreclosure Charges | Nil if pre-closed after 180 days - 0.50% if pre-closed within 180 days - 1% if pre-closed within 90 days - 2% if pre-closed within 30 days | | Valuation Charges | Up to ₹3 lakh: ₹350 - ₹3 lakh to ₹10 lakh: ₹750 - Above ₹10 lakh: ₹1,500 | | Overdue Handling Charges | ₹750 if notice delivered to communication address - ₹1,700 if no notice delivered and paper publication required | | Loan-to-Value (LTV) | Up to 75% of gold's market value | | Repayment Options | Bullet repayment, Equated Monthly Installments (EMIs), Overdraft facility | | Tenure | 6 months to 12 months | | Disbursal Time | Instant disbursal available |
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