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Manisha Mehta made post

Are there any hidden fees that I need to pay when taking a gold loan? Which are the renowned companies that give gold loans?

Answer
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Ashok Patkar answered.
2 years ago


No, there aren’t any hidden fees when you take a gold loan.

However, for the service that these non-banking financial companies or banks provide you, they charge you a nominal processing fee.

While the processing fee varies from one bank to another, but it generally is not more than 2% of the total loan amount.

Gold loan provider

Interest rate

Processing fee

HDFC Gold Loan

9.6% onwards

Nil to 0.5% of loan sanctioned

Muthoot Gold Loan

12% onwards

0.25% to 1% of loan sanctioned

Manappuram Gold Loan

14% onwards

Varies on a case-by-case basis

ICICI Bank Gold Loan

10.5% to 16.5%

1% of loan amount

SBI Gold Loan

11.05% per annum

0.5% of loan amount with a min. Rs. 250

Axis Bank Gold Loan

14.50% to 17%

1% of loan amount

In addition to the processing fee, you are expected to pay a gold validation charge, which the bank will incur.

Additionally, some banks also charge a gold validation charge, which is an additional charge that banks have to incur at their end.

Banks and NBFCs that provide gold loans:

- HDFC Bank

- Muthoot Finance

- Manappuram Finance

- ICICI Bank

- State Bank of India

- Axis Bank

- Central Bank of India

- Federal Bank


user profile image
Ashok Patkar answered.
2 years ago


No, there aren’t any hidden fees when you take a gold loan.

However, for the service that these non-banking financial companies or banks provide you, they charge you a nominal processing fee.

While the processing fee varies from one bank to another, but it generally is not more than 2% of the total loan amount.

Gold loan provider

Interest rate

Processing fee

HDFC Gold Loan

9.6% onwards

Nil to 0.5% of loan sanctioned

Muthoot Gold Loan

12% onwards

0.25% to 1% of loan sanctioned

Manappuram Gold Loan

14% onwards

Varies on a case-by-case basis

ICICI Bank Gold Loan

10.5% to 16.5%

1% of loan amount

SBI Gold Loan

11.05% per annum

0.5% of loan amount with a min. Rs. 250

Axis Bank Gold Loan

14.50% to 17%

1% of loan amount

In addition to the processing fee, you are expected to pay a gold validation charge, which the bank will incur.

Additionally, some banks also charge a gold validation charge, which is an additional charge that banks have to incur at their end.

Banks and NBFCs that provide gold loans:

- HDFC Bank

- Muthoot Finance

- Manappuram Finance

- ICICI Bank

- State Bank of India

- Axis Bank

- Central Bank of India

- Federal Bank