SBI Gold Loan - All You need to know
SBI Gold Loan

SBI Gold Loan – All You need to know about eligibility, interest rate, application process, collateral or security, how to apply for SBI gold loan. State Bank of India (SBI) offer personal gold loan and agriculture gold loan at attractive interest rates. Apply for SBI Gold Loan up to 20 lakh at low interest rate. Under the Scheme, anyone can avail SBI gold loan by pledge their gold or jewel assets lying idle at home to get ready cash.

The personal SBI gold loan amount can be used for funding any emergency need – education, marriage, purchase gadget, vacations, purchase machinery or equipment for office or business etc. Whereas SBI agriculture gold loan helps farmers / agriculturists to meet their expenses related to agriculture or allied agriculture activities. The loan amount is calculated on the basis of value of gold which further depends on purity and gold price.

SBI Personal Gold Loan Eligibility, Interest rates, Documentation, Application process, Repayment

SBI Gold Loan - All You need to know
SBI Gold Loan

Eligibility for SBI Gold Loan

  • Applicant must be above the 21 years of age at the time when applying for loan.
  • Anyone with steady source of income can avail the loan.
  • Proper introduction of the borrower and minimum capacity to service the interest will be sufficient to determine eligibility
  • No income proof to be submitted

SBI Gold Loan Minimum & Maximum Limit

  • Minimum – ₹ 10,000/-
  • Maximum – ₹ 20,00,000/-
  • Margin – 35%

SBI Gold Loan Interest Rate

The interest rate charged on SBI gold loan is low. It is easier for the borrower to make the repayment. Rate of advance for personal gold loan is 2.15 percent + MCLR – 1 YR

SBI Gold Loan Processing Fee

Processing fee is onetime fee levied at the time of loan processing.

For BIS Hallmarked Jewellery / Ornaments and specially minted Gold Coins sold by banks :

  • 50% of the loan amount + applicable GST
  • (Min – ₹ 250/- , Max – ₹ 500/-) + applicable GST

For Non Hallmarked Jewellery/ Ornaments

  • Up to ₹ 25000 – ₹ 250 per application + applicable GST
  • Above ₹ 25000 – 0.50% of the loan amount + applicable GST or ₹ 500 + applicable GST whichever is higher

Documentation for SBI Gold Loan

The documentation to get SBI Gold loan is very easy and minimal. Get following documents ready to get your loan approved quickly and easily.

To apply for SBI Gold Loan, you need following documents.

  • Application Form for Gold Loan
  • Two Passport Size Photograph
  • Witness Letter in case the applicant is illiterate
  • Proof of Identity (Aadhar, PAN,DL, Voter ID,Passport)
  • Proof of Address (Voter ID, Aadhar Card, Rent Agreement, Utility Bill, Bank Statement)

At time of disbursement

  • DP note and DP Note Take Delivery Letter
  • Gold Ornaments Take Delivery Letter
  • Arrangement Letter


Pledge of Gold assets, coins, ornaments or jewels duly verified for quality and quantity by Appraiser.


SBI Gold loan tenure or repayment period depends on the scheme you chosen.

  • Gold Loan – Repayment start from the month following the month in which your loan was disbursed.
  • Liquid Gold Loan – it is a type of overdraft account with transaction facility and monthly interest is to be served.
  • Bullet Repayment Gold Loan – Principle and interest repayment has to be made before the term of loan or on closure of account.

However, Bullet repayment scheme is more popular over other schemes of Gold Loan.


  • Gold Loan & Liquid Gold Loan – 36 months
  • Bullet Repayment Gold Loan – 12 months


  • Gold Loan & Liquid Gold Loan – 25%
  • Bullet Repayment Gold Loan – 35%

Repayment Mode

Bullet repayment of interest and principal at the end of the term. Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the maturity.

Application Process for SBI Gold Loan – How to Apply for SBI Gold Loan

SBI Gold Loan can be availed from any branch of SBI through direct walk-in or filling an online application form for gold loan. The process of sanctioning and disbursal of loan is simple and hassle free. Here is the step by step application process to avail loan against gold.

  • Visit the nearest SBI branch and get the application form for Gold loan.
  • Fill the application form and complete with necessary details.
  • Attach the subsequent documents (ID Proof, Address Proof, Passport Size photopgraph)
  • Submit the application form to bank.
  • Bank will verify your eligibility and credibility through CIBIL score before processing your loan application.
  • If you fulfill the eligibility criteria, bank will call you for further process of Gold appraisal.
  • Gold appraiser will verify your Gold Ornaments and calculate the gross or net value of your gold.
  • After duly verification of all documents complete in all respect, bank will sanction and disburse the loan in your saving account.

LTV (Loan to Value) Ratio

The final loan amount will be arrived at by applying a Loan to Value Ratio (up to 75%). The LTV ratio will be computed against the total outstanding in the account, including accrued interest, and current value of gold jewellery accepted as security / collateral. The following factors have to be kept in mind for this purpose :

  • The loan will be sanctioned with a margin of 35%
  • LTV of 75% has to be maintained throughout the tenor of the loan.
  • The LTV ratio has to be computed against total outstanding in the account including accrued interest. (Interest would be charged to the account at monthly rests but would become due for payment along with principal only at maturity i.e. after 12 months).
  • The LTV ratio will be computed against the current value of gold.
  • In case the LTV Ratio crosses the stipulated limit of 75% on account of fall in gold prices, customer will be intimated to replenish the margin either by way of cash deposit or additional gold ornaments / coins.

Features of SBI Gold Loan

SBI Gold Loan Features
SBI Gold Loan Features
  • Low interest rates. Interest is charged on a daily reducing balance.
  • Low processing charges
  • No hidden cost / administrative charges
  • Minimal and hassle free documentation
  • No Foreclosure penalty

Frequently asked Questions (FAQs) on SBI Gold Loan

Can I prepay the gold loan amount?

Yes, you can prepay your gold loan or jewel loan.

Are there any foreclosure charges on SBI Gold Loan?

No, there are no foreclosure charges.

Can I apply online for Gold Loan from SBI?

Yes, you can apply for SBI Gold loan online on SBI website. Click here

Does SBI offer Gold Loan for Agriculture Purpose?

Yes, SBI offer the agriculture gold loan at interest rate comparatively lower than personal gold loan.

What type of Gold can I pledge for loan?

You can pledge any type of gold. Purity of gold will decide the extent of loan amount.

Is there any Interest subvention on Gold Loan?

For those in priority sectors such as agriculture, there is rebate on 1-2 percent on the interest.

Is my gold safe with the bank?

Gold is kept in sealed packets in a strong room guarded under CCTV camera 24×7. Some banks also insure the gold pledged to them, against any theft. In case of robbery, you will get the amount equivalent to market value of gold.

What happen if I don’t repay the loan on time?

Lender bank will sell your gold to settle the dues on your gold loan account.


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