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Interest Rates Now Starting Only at 10%*
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Gold Loan Interest Rates and Charges
Understanding the interest rates and fees and charges associated with a gold loan is important to make smart borrowing decisions. The interest rate charged on a gold loan, along with the additional fees contribute significantly to the total cost of your loan. If you are to negotiate for a better interest rate or save up on the total interest outgo, it is crucial that you are aware of all the fees and charges, besides just the interest rate levied on your loan.
At Shriram Finance, gold loan interest rate starts at 10%* p.a. The other additional charges, like processing fees, are kept to a minimum, allowing you to manage your expenses without the added burden of extra payments.
| Types of Fees | Applicable Charges |
|---|---|
| Interest Rate | Starting at 10%* p.a. |
| Processing Fee | Capped at 5%* |
| Foreclosure Charges | - |
| Auction Charges | Up to ₹3,500 |
| Bank Charges (per instance of cheque bounce) | Up to ₹1,000 |
| Documentation Charges | Up to ₹3,000 |
Please note that the rates and charges on Shriram Gold Loan depend on several market conditions and are subject to change. Please refer to the Interest Rate Policy document for the most updated information.
Types of Gold Loan Interest Rates
The current gold loan interest rate from Shriram Finance is fixed and remains the same throughout the loan period. However, to learn about the various types of secured loan interest rates available in the market, some of which have been discussed below:
Fixed Interest Rate
Gold loan fixed interest rate is when the rate remains constant throughout the loan tenure, providing borrowers predictability in their EMI calculations and therefore, more control over their finances.
Reducing Balance Interest
In this method, the interest is calculated on the outstanding loan amount, which reduces with each EMI payment. This helps in saving interest cost over the loan tenure.
Floating Interest Rate
In gold loan floating interest rate, the rates may change with market conditions or RBI policy changes over the loan tenure. This results in variations in EMIs and the total interest payable.
Factors Affecting Gold Loan Interest Rates
Several factors can influence the interest on gold loan from Shriram Finance:
Gold Purity and Valuation
The purity of gold and its valuation can impact the interest rate. Gold articles between 18 and 22 karat often impact interest rates.
Loan Amount
A higher loan amount may attract lower interest rates, subject to Shriram Finance’s internal policies. This is because a higher quantum loan is usually approved for applicants with better risk profiles.
Loan Tenure
Shorter loan tenures may decrease the interest rates as the risk often decreases compared to longer tenures.
Several other factors may also determine the interest charges on gold loan from Shriram Finance. It is always wise to reach out to us for more details so that you can secure a low-interest gold loan.
Additional Charges on Gold Loan
Some of the additional charges associated with Shriram Gold Loan are as follows:
Processing Fee
At Shriram Finance, our processing fees for a gold loan are capped at 5%* of the total loan amount.
Auction Charges
Shriram Finance also levies auction charges of up to ₹3,500 if pledged gold has to be auctioned in the unfortunate event of defaults. This ensures that the outstanding loan amount is recovered fairly and by adhering to legal compliance.
Bank Charges
For each instance of cheque bounce, bounce charges up to ₹1,000 may also be applied to compensate for the administrative and banking costs due to failed payment.
Documentation Charges
As the name suggests, these charges of up to ₹3,000 are applicable to create and process the loan agreement, including verification and record-keeping services.
Other fees and charges may also be applicable on your Shriram Gold Loan. Ensure that you check the interest rate policy thoroughly and reach out to a Shriram Finance customer care or loan executive for more details and secure one of the best gold loan interest rates in the market.
FAQs
How much loan can I get on 10 gram gold?
The loan amount that you will qualify for on 10 gram gold depends entirely on the current market value of your gold articles, their purity, the LTV ratio and Shriram Finance’s internal policies. Use our gold loan eligibility calculator to work out your eligible loan amount quickly.
What is the current interest rate for a gold loan?
Interest rates for Shriram Gold Loan start at 10%* p.a.
What are the minimum and maximum interest rates for gold loans?
The minimum interest rate for Shriram Gold Loan is 10%* p.a. and the maximum is up to 30%* p.a. The interest rate slab for gold loan applicants depends on several factors, including the loan amount, gold purity and tenure.
What factors affect gold loan interest rates?
Factors affecting gold loan interest rates typically include the loan amount, tenure, weight and purity of the gold articles and Shriram Finance’s internal policies.
What is the difference between fixed and floating interest rates?
Fixed interest rates, as the name suggests, offer a fixed rate on the gold loan throughout its tenure and are not affected by market factors or RBI’s policy changes. Floating interest rates, on the other hand, can change with market factors or RBI’s policies.
Is the gold loan interest rate fixed or floating?
The interest rate for a gold loan at Shriram Finance is fixed and starts at 10%* p.a.
Can I negotiate gold loan interest rates?
Yes, you can try to negotiate the interest rate offered to you on your gold loan if you meet all the eligibility criteria of gold weight, purity, etc. But the final interest rate offered will depend on Shriram Finance’s sole discretion.
Are there any additional charges apart from the interest rate?
Yes, additional charges mostly include a one-time processing fee up to 5%*, late payment fees, etc. Check the interest rate policy for a detailed breakdown or reach out to us for more details.
Does my credit score affect my gold loan interest rate?
Your credit score does not affect your gold loan interest rate as this type of loan is collateral-based. The rates depend on factors like your gold asset’s weight, purity, the loan amount desired, loan tenure, etc. But if you don’t make loan repayments on time, your credit score can be negatively impacted.
Are there prepayment penalties on a gold loan?
Shriram Finance does not charge any prepayment or foreclosure fees on your gold loan. But it is important to stay updated with the recent interest rates and charges policy for accurate information.
Why Shriram Finance Is The Best Financial Partner For Your Gold Loan Requirement
45+Years of Trust
90 Lakhs+Satisfied Customer
3500+Branches Nationwide
25,000Committed Employees
Low Processing Charges & Quick Loan Disbursals on Gold Loan
