Federal Bank vs IDFC First vs DCB Bank
Gold loans are one of the most famous forms of lending in India. With features on offer like quick processing timelines, borrower friendly repayment schemes, and low interest rates, it has become a preferred mode of borrowing for the masses who have gold available to collateralize.
Also, the convenience on offer is unmatched, be it quick processing, hassle free loan application process, low documentation requirement, quick release, etc.
Considering these features on offer, and borrowers’ increased preference towards gold loans, many public, and private banks, and NBFCs have entered the market with great customer centric solutions.
Lenders like IndiaGold in the NBFC space, and private banks like Federal Bank, IDFC First bank, and DBS bank have entered the foray. Read along to understand these lender’s offerings in the gold loan space, make a gold loan rates comparison, which can help make the right choice when it comes to borrowing a gold loan.
Federal Bank Gold Loan:
Federal Bank is one of the most well known private banks in the country and has one of the best gold loans in India. The company has a wide range of products on offer, and a team of extensively trained and qualified staff! Their gold loan offering is extremely competitive to the market standards, and the company is poised to increase its market share backed by their name in the banking sector and a wide customer base.
Let’s take a closer look at their gold loan offering to understand their product better:
| 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 |
IDFC First Gold Loan:
IDFC First Bank is a pioneer when it comes to providing customer centric and unique solutions. So is the case with their gold loan offerings. The loan is often described as the best gold loan for low interest rates, and customer centric features. If you were to compare gold loan interest rates in India and overall offering, IDFC First Bank has a pretty solid offering.
Read along to understand the offerings in detail which can help make the right choice in choosing the best gold loan lending partner.
| Feature | Details | | ----- | ----- | | IDFC First Gold Loan Rates | Starting from 9.75% p.a. | | Loan Amount | ₹25,001 to ₹50,00,000 | | Loan Tenure | Bullet Scheme: 12 months Monthly Interest Scheme: Up to 60 months EMI Scheme: 12 to 60 months | | Collateral | Gold jewellery of 18 to 22 carats Bank-issued gold coins (up to 50 grams per customer) Exclusions: Gold ornaments below 18 carats, broken ornaments, bullion, idols, bars, watches, cutlery, white gold, etc. | | Repayment Options | Bullet Payment Monthly Interest Payment Equated Monthly Installments (EMI) | | Processing Fees | Up to 1% of the loan amount + GST | | Gold Valuation Charges | ₹550 per case + GST | | Stamp Duty | As per actual state norms | | Bounce Charges | ₹500 + GST | | Part Payment Charges | Up to 2% of the part payment amount if made within 90 days of disbursement | | Foreclosure Charges | Up to 2% of the outstanding principal if loan is closed within 90 days of disbursement | | Late Payment Charges | 2% per month on overdue amount or ₹300, whichever is higher | | Auction Charges | Issuance of Notice: ₹375 Issuance of Publication: As per actual publication charges Platform Fees: 1% of the ornament bidding amount | | Disbursal Time | 45 to 90 minutes, depending on the number of ornaments, loan amount, and completion of digital processes like eKYC, e-Sign, and e-Mandate | | Security Measures | Gold stored in state-of-the-art vaults | | Repayment Methods | Cash, Internal fund transfer NEFT RTGS Cheque Paytm Standing Instructions (SI) / NACH | | Eligibility | All resident Indians (Salaried, Self-Employed, Housewives, Students, etc.) aged between 18 and 70 years | | Documentation | eKYC / Valid KYC For express disbursal: Net Banking or Debit Card details to set up e-Mandate, e-Signature | | Guarantor Requirement | Not required for most applicants Income co-applicant required for housewives and students | | Overdraft Facility | Not available for business requirements on Gold Loan | | Gold Loan Calculator | Available online to calculate EMI and loan eligibility |
DCB Bank Gold Loans:
DCB Bank has one of the most customer centric gold loans on offer in the market. The bank has been consistently doing well and increasing their market share in the gold loan market. The bank has a solid customer base and a good offering which is helping them do well in the space while offering strong customer service and cost effective loans. Their offering fares well in the gold loan comparison among multiple lenders in the market.
Following are the features and DCB Bank gold loan rates on offer:
Features:
- Minimal Documentation
- Hassle free disbursement procedure after due loan assessment
- Safe custody of Gold collateral in Bank Lockers
- Right value Assessment for Gold collateral
- Loan Amount - INR 10 thousands to INR 30 lakhs
- Loan Tenure - 1 year to 5 years
- Attractive Loan to value (LTV) ratio of up to 75%
- Flexible repayment option - EMI and monthly interest payment plans available
Gold Loan Interest Rates:
| Loan Amount Range | Overdraft ROI (% p.a.) | Term Loan ROI (% p.a.) | Min ROI (% p.a.) | Max ROI (% p.a.) | Mean ROI (% p.a.) | Min APR (%) | Max APR (%) | | ----- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | | Up to ₹1 lakh | 16 – 18 | 14 – 18 | 9.55 | 16.50 | 13.00 | 9.55 | 21.94 | | ₹1 lakh – ₹3 lakh | 13 – 18 | 12 – 18 | 9.55 | 16.50 | 13.00 | 9.55 | 21.94 | | ₹3 lakh – ₹5 lakh | 9.55 – 12 | 9.55 – 12 | 9.55 | 16.50 | 13.00 | 9.55 | 21.94 | | ₹5 lakh – ₹10 lakh | 9.55 – 11 | 9.55 – 11 | 9.55 | 16.50 | 13.00 | 9.55 | 21.94 | | Above ₹10 lakh | 9.55 – 11 | 9.55 – 11 | 9.55 | 16.50 | 13.00 | 9.55 | 21.94 |
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