SBI Gold Loan

State Bank of India is the largest government co-owned bank in India. Popularly known as SBI, the bank has played a significant role in ushering in the era of the organized banking sector in India. SBI offers a wide range of affordable services to individuals of all earning classes as well as corporate businesses. The headquarters of SBI is located in Mumbai, and the bank has more than 24,000 branches since its merger with five more associate banks. Such an extensive network of branch offices is impressive and speaks volumes of SBI’s position in the banking industry.

SBI offers customized gold loans to its customers to turn idle gold into funds that can fulfill their needs. The gold loans from SBI are offered at attractive interest rates. The sanctioned loan amount depends on the current market value of the pledged gold and cannot exceed a limit of Rs. 20 lakhs. The maximum loan tenure for SBI gold loans is 36 months.

SBI Gold Loan Features and Benefits

Here are a few advantages and features of SBI gold loans.

1. Any SBI customer with a steady source of income can avail the loan.

2. The eligible age range is extensive, covering a large number of customers.

3. Customers can rest easy regarding the security of their gold, which is kept safe in secure bank vaults.

4. It is a multipurpose loan that can cover several types of expenses.

5. A maximum loan amount of Rs 20 lakhs and a minimum loan amount of Rs 10,000 can be availed in rural areas, and Rs 20,000 in metros and urban areas.

6. A fast and efficient loan disbursal process.

7. Minimal documentation is required for the loan approval process.

8. All types of gold ornaments and jewelry are accepted as collateral for the loan.

9. Competitive rates of interest are offered to fit all types of customer budgets.

10. Long loan tenure, of a maximum of 12 months, and 36 months for overdraft.

11. The facility of choosing a loan tenure as suitable for the customer.

SBI Gold Loan Amounts

SBI maintains a margin of 25% of the total current market value of the gold articles pledged by the customer to SBI as security. The customer gets 75% of the total current market value of the gold articles pledged.

SBI Gold Loan Interest Rates

SBI charges an interest rate of 1.25% above the marginal cost of funds-based lending rate or MCLR. The current MCLR is 9.15% per annum. 

Here is a summary of all the information regarding SBI gold loans.

Interest Rate	1.25% above the MCLR per year (MCLR: 9.15% p.a.)
Minimum Loan Amount	Rs 20,000
Maximum Loan Amount	Rs 20 lakhs
Gold Loan Margin	25%
Maximum Repayment Tenure	36 months

Eligibility Criteria for SBI Gold Loans

Customers need to fulfill the following eligibility criteria set by SBI for its gold loans.

1. A minimum age of 21 years.

2. A stipulated minimum income per year.

3. A steady source of income.

Documentation Required for SBI Gold Loans

Loan processing requires the following documents.

1. Two passport size photographs.

2. A copy of proof of identity.

3. A copy of proof of address.

4. A filled-in application form.

Fees and Charges Associated with SBI Gold Loan

Here is a list of fees associated with SBI gold loans.

Loan Processing Charges	0.5% of the loan amount + GST
Foreclosure Charges	nil
Valuation Fees	nil
Prepayment or Part-payment Charges	nil
Renewal Processing Fees	nil
Charges for Late Payment of Loan Amount	Not applicable
Stamp Duty & other Statutory Charges	As applicable by state laws

SBI Gold Loan EMI Calculator

SBI also has an EMI calculator for its gold loans. Applicants can use it to check the tentative amounts that they need to pay as loan EMIs. The EMI calculator depends on the following factors.

1. Gold loan amount

2. Gold loan tenure

3. Gold loan interest rate

4. Loan to Value ratio

5. Current price of the gold

6. Purity and net weight of the pledged gold

7. Relationship with the bank

EMI Calculator Example

Raani needs to get her fashion boutique started, for which she needs around Rs 2.5 lakhs. She decides to take an SBI gold loan using the jewelry that her mother gifted her. The net cost of the jewelry is Rs 3.5 lakhs. She chooses a loan tenure of 12 months with an interest rate of 12.5%. Using the EMI calculator, the SBI officials set her EMI amount as Rs 15,270 per month, which is within her monthly budget.

How to Apply for SBI Gold Loan

The application process of SBI gold loans is really simple and straightforward. Customers can walk in with the necessary documentation and their gold articles to any SBI branch offering gold loans. The bank evaluates the worth of the gold articles and verifies the submitted records. The customer can then receive the sanctioned loan amount. The entire process takes less than one working day.

News Update: SBI mobilizes 13,212 kg of household gold from its Gold Monetization Scheme

SBI or the State Bank of India has by now mobilized as much as 13,212 kgs of households gold and institutional gold through its Hold Monetization Scheme, as reported by a state-owned bank’s annual report.

This report also says that SBI, which is India’s largest lender, collected a total of 3,973 kgs of gold during the period of 2019 to 2020. This was done under the GMS. The GMS, as said above, was a program which was launched by the government to use idle household gold lying fallow. This also used to use gold lying idle with trusts.

In the report, SBI says, “During FY2020, the bank mobilized gold amounting to 3,973 kgs, bringing the cumulative mobilization to 13,212 kgs.”

In November 2015, the government of India launched GMS. This was done in order to mobilize the gold lying idle with trusts and individuals and families. The objective of the GMS was to use idle gold for productive work, and also to reduce the country’s import dependence.

SBI says that during the period of 2019 and 2020, it mobilized as much as 647 kg worth Rs. 243 crore. This was done through sovereign gold bonds. This aided in taking the total gold mobilized since the beginning to 5098 kgs worth Rs. 1561 crore.

The SBG scheme was developed by the Indian government to promote digital gold instead of physical gold for investing, during 2015 and 2016.

SBI is the primary player in the country’s bullion market. It has been making available the metal gold loan to jewelers who are engaged in the manufacture of gold ornaments for domestic purposes and for import. 

During the period of 2019 and 2020, the bank has extended its metal gold loan to the jewelers till 22.255 kgs, and has sold as much as 2522 kg under its Sale of Gold scheme for traders and jewelers.

Frequently Asked Questions

Question 1: What is the age range to be eligible for SBI gold loans?

Answer: The age limit for SBI gold loans is restricted to the range of 18-65 years.

Question 2: What is the maximum gold loan amount that I can receive from SBI?

Answer: The maximum loan amount applicants can receive is 75% of the market value of the pledged gold or Rs 20 lakhs, whichever is less.

Question 3: What is the minimum gold loan amount that I can receive from SBI?

Answer: The minimum gold loan amount from SBI is Rs 20,000.

Question 4: What is the maximum loan tenure for SBI gold loans?

Answer: The maximum tenure for SBI gold loans is three years.

Question 5: What kinds of gold articles does SBI accept as security?

Answer: SBI accepts gold coins and gold ornaments of purity 18K-24K, weighing more than 50 grams.