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ICICI Bank ICICI Bank

Gold Loan Interest Rate

 

 

Interest Rate on Gold Loan refers to the percentage of interest charged by a lender on the borrowed amount, which is secured by providing gold jewellery and assets as collateral. This rate represents the cost of borrowing and is typically expressed as an Annual Percentage Rate. It determines the additional amount that borrowers must repay over and above the Principal Loan Amount during the Loan Tenure. The Interest Rate can vary based on factors such as the lender's policies, prevailing market conditions, Loan Amount, tenure, purity, weight of the gold and the borrower's creditworthiness.

 

Apply Gold Loan online up to ₹2 crore* with best interest rates, minimal documentation and quick approvals.

 

 

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Gold Loan Interest Rate & Charges

Gold Loan Interest Rate by ICICI Bank varies based on various categories like loan amount, customer relationships etc.

 

 

Interest rate range*: Q1 APRIL 2025 TO JUNE 2025 Minmum Maximum Mean
*Terms and Conditions applied

9.15%

16.75%

12.34%

 

 

Note: (Mean rate = Sum of rate of all loan accounts / Number of all loan accounts.)

 

 

Particulars Twelve months product Six months product

Processing Fees

Up to 2%* of the loan amount

Up to 2%* of the loan amount

Foreclosure Charges

Nil - if the loan is pre-closed after 180 days.

Nil - if the loan is pre-closed after 120 days.

0.50% - if the loan is pre-closed within 180 days.

0.50% - if the loan is pre-closed within 120 days.

1% - if the loan is pre-closed within 90 days.

1% - if the loan is pre-closed within 60 days.

2% - if the loan is pre-closed within 30 days. 

2% - if the loan is pre-closed within 30 days. 

Valuation charges

For loan amount:


a. Up to 3 lakh: Rs 350


b. Greater than 3 lakh upto 10 lakh: Rs 750


c. Greater than 10 lakh : Rs 1,500

Overdue Handling Charges (delinquent accounts)

1. ₹ 750 where a notice has been delivered to the communication address and a paper publication is not required.


2. ₹ 1,700 where no notice has been delivered to the communication address and a paper publication is to be done.


3. ₹ 300 for sending an auction notice over and above preceding points 1 and 2.


4. ₹ 200 for sending a Loan Recall Notice over and above preceding points 1 and 2

Penal charge on overdue amount 

 Penal charges will be equal to 5% per annum on the overdue amount, from the due date until the actual payment date plus applicable taxes or other statutory levies, if any.

 

 

Note

  • Stamp Duty and other statutory charges – As per the applicable laws of the state.
  • *Terms and Conditions Applied

 

 

 

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About Gold Loan Interest Rate

Annual Percentage Rate

The Annual Percentage Rate (APR) is a method to compute annualised credit cost, which includes interest rate and processing fee.

The APR calculator does not include charges like stamp duty, Prepayment charges etc.

To calculate the same, please click here to download the APR calculator.

* Terms and Condition apply

Gold Loan Amount & Tenure
Description Minimum Maximum
Loan Amount  3 lakhs for New to Bank customers in Metro location

2 lakhs for New to Bank customers in non-metro location		 Rs  20000000
Loan Tenure 6 months 12 months

FAQs on Gold Loan Interest Rates

What is the Gold Loan Interest Rate?

Gold Loan Interest Rate is the rate at which a financial institution lends money against the value of gold provided as collateral. It represents the cost of borrowing funds.

How is the Gold Loan Interest Rate determined?

Gold Loan Interest Rates are determined by a range of factors including the lender’s policies, Loan Amount, tenure, purity, weight of the gold, Loan-To-Value ratio and the borrower’s credit profile.

Are there any additional charges apart from the Interest Rate?

Yes, lenders may impose additional charges such as Processing Fee, Valuation Fee and Documentation Charges. These should be considered while calculating the total cost of the Loan.

How does the Loan Tenure affect the Interest Rate?

The tenure of your Gold Loan influences the Interest Rate. Loans with longer tenures may have higher Interest Rates compared to Loans with shorter tenures. It is important to choose a Gold Loan Tenure that aligns with your repayment capacity, while also considering the impact on Interest Rate. 

What is the Loan-to-Value (LTV) ratio for a Gold Loan?

The LTV ratio is the Loan Amount a lender offers, compared with the value of gold. For example, if the LTV ratio is 75%, you can get a Loan of up to 75% of the gold's value.

Does my Credit Score affect the Gold Loan Interest Rate?

No. Credit Scores do not affect Gold Loan Interest Rates. This is because Gold Loans are Secured Loans. 

Is the Interest Rate on Gold Loans fixed or variable?

Gold Loan Interest Rates can either be fixed or variable, depending on the lender's terms. Fixed rates remain constant throughout the Loan Tenure, while variable rates can change, based on market conditions.

Can I prepay my Gold Loan and are there any penalties?

Most lenders allow prepayment of Gold Loans, but some may levy Pre-closure Charges. It is important to check the specific Terms and Conditions of the Loan Agreement.

VIEW All FAQ’S

 

 

Disclaimer*: I authorize ICICI Bank and its representatives to call or SMS me for providing assistance related to Gold Loan. The above consent will override any registration in DNC/NDNC, if applicable

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