As per the recent data, Punjab & Sind Bank offers interest rate of 7% on a gold loan of Rs. 5 lakh, with repayment tenure of 3 years. Bank of the India is the second on the list of cheapest lenders, charging an interest rate of 7.35%. SBI, BoB gold loans carries an interest rate of 7.5% and 9% per annum respectively.
Non-banking financial companies that are highly active in this space offer loans at comparatively higher rates. IIFL Finance’s gold loans come at an interest of 9.24%, which is the cheapest amongst NBFC gold loans. Gold loan rates of Bajaj Finance start at 11%, while the two major players in this space – Muthoot and Manappuram – levy interest rates of 11.90% and 12%, respectively.