Gold Loan Interest Rates

Mode of calculation

  • Interest rate will be quoted on annualized basis only.

  • Interest amount will be calculated on the daily outstanding balance in the loan account at the contracted rate.

  • Interest will be calculated on the basis of 365 days a year.

  • Compounding, if any, will be provided in specific loan schemes.

  • All loans carry the fixed contracted rate till closure of account.

Risk related rate of interest

  • Since a higher LTV (loan per gram) translates to a higher risk interest rate and LTV will be correlated.

  • Assuming all other factors to be the same a higher LTV loan will attract a correspondingly higher interest rate as compared with a lower LTV loan.

  • The interest rate applicable will vary from time to time and will be mentioned against the specific operative schemes / loan products.

Maximum rate of interest

  • The maximum interest rate chargeable during the loan tenor has been fixed at 29% pa".

Penal / Overdue interest

  • When the loan remains outstanding beyond the 'normal' tenure overdue / penal interest will be charged at 3% pa (i.e. contracted rate plus 300 basis points) on the amount due and payable till the account is regularized / closed