What are the Interest Rates for Gold Loans Used for Home Renovation?

Gold loans typically carry lower interest rates compared to other forms of personal credit like personal loans or credit cards. However, interest rates vary across banks and Non-banking Financial Companies (NBFCs) providing gold loans.

For gold loans specifically availed for home renovation purposes, the following factors determine the interest rate charged:

• The lender's benchmark rates - base rates are typically in the range of 9% to 15% per annum.
• Applicant's credit score - a higher score may attract a lower rate, though credit scores are not a primary deciding factor for interest rates or gold loan eligibility.
• Loan tenure chosen - longer tenures may have higher rates.
•  Loan amount - higher amounts may mean marginally higher rates.
• Promotional offers - financial institutions may offer periodic lower rates and processing fees.

So, in general, gold loan interest rates for home renovations may range between 9% and 15% based on the above criteria. However, it can be higher or lower depending on the loan provider. Compare rates across financial institutions before applying. NBFCs may have lower rates than other financial institutions. You can opt for fixed rates to protect against fluctuations.

Ensure you factor in the interest payouts in your overall renovation budget. Choose the loan provider and loan tenure wisely to get an optimal rate."