What are the current interest rates offered on NRI gold loans?

Non-Resident Indian (NRI) gold loans are a popular financial product for individuals living abroad who need quick access to funds. The interest rates on these loans generally depend on the loan provider, loan amount, repayment tenure, and other terms.

• Interest rates for NRI gold loans typically start at 9% per annum. Actual rates offered depend on the bank's or Non-banking Financial Company (NBFC)’s policies.
• Loan-to-Value (LTV) ratio, which is the loan amount sanctioned compared to gold's market value, also impacts applicable interest rates.
• Most financial institutions accept gold jewellery and ornaments, but not coins or bars, for disbursing these loans. Rates can differ marginally based on the purity of the pledged gold.
• NRI gold loans usually have tenures ranging from a few months to up to a year. In some cases, shorter tenure loans often get slightly better interest rates.
• Processing charges are applicable in most cases and add to the overall cost. It's either a fixed fee or a small percentage of the loan amount.
• Credit history, repayment capacity, and other factors also play a role in decisions on interest rates.
• Before applying, it is advisable to compare interest rates and terms across various banks and NBFCs. Rates and terms differ widely among loan providers.
• Key terms and conditions need to be checked in detail first to correctly understand the effective loan cost.
• Foreclosure charges may apply for early closure of loans based on the lender's policies.
• Some banks or NBFCs offer special rates for certain customer segments and loan amounts.