Introduction to Gold Loan Schemes
Gold loans, secured by pledging gold ornaments or coins, have become a popular financing option in India due to their accessibility and flexibility. As of 11:42 PM IST, July 03, 2025, Loanpao highlights why these schemes, particularly those from State Bank of India (SBI), attract borrowers for various financial needs like medical emergencies, education, or business expansion.
Why Gold Loans Attract Borrowers
Gold loan schemes are favored for several reasons:
- Low Interest Rates: SBI offers gold loans starting at 9.05% p.a., lower than unsecured personal loans, reducing the cost of borrowing. [](https://www.buddyloan.com/sbi-gold-loan)
- Quick Disbursal: Loans are often sanctioned on the same day, ideal for urgent needs like medical expenses or margin money for home loans. [](https://sbi.co.in/web/personal-banking/loans/gold-loan/personal-gold-loans)
- Minimal Documentation: No income proof required for bank employees or pensioners, simplifying the process. [](https://www.bankbazaar.com/personal-loan/sbi-gold-loan.html)
- Flexible Repayment Options: Choose between EMI-based (up to 36 months) or bullet repayment (3, 6, or 12 months) schemes. [](https://www.paisabazaar.com/sbi-bank/gold-loan/)
- High Loan-to-Value (LTV): Up to 75% of gold’s market value can be borrowed, offering substantial funds. [](https://www.indiafilings.com/learn/sbi-gold-loan/)
- No Prepayment Penalties: SBI allows early repayment without charges, enhancing flexibility. [](https://sbi.co.in/web/personal-banking/loans/gold-loan/personal-gold-loans)
SBI Gold Loan Schemes
SBI offers multiple gold loan variants tailored to diverse needs:
| Scheme | Purpose | Loan Amount | Tenure | Interest Rate |
|---|---|---|---|---|
| Personal Gold Loan | General purposes (medical, education, travel) | ₹20,000 - ₹50 lakh | Up to 36 months (EMI) | 9.05% p.a. onwards |
| Realty Gold Loan | Margin money, registration, project escalation for housing loans | ₹20,000 - ₹50 lakh | Up to 36 months (EMI) | 7.30% p.a. onwards |
| Liquid Gold Loan | Overdraft facility for flexible withdrawals | ₹20,000 - ₹50 lakh | Up to 36 months | 9.05% p.a. onwards |
| Bullet Repayment Gold Loan | Pay principal and interest at maturity | ₹20,000 - ₹50 lakh | 3, 6, or 12 months | 9.05% p.a. onwards |
| Multi-Purpose Gold Loan | Agricultural or other specific needs | ₹20,000 - ₹50 lakh | Up to 36 months | 8.05% p.a. (with 1-2% concession for agriculture) |
Note: Interest rates are subject to change based on SBI’s policy and MCLR. Contact SBI for the latest rates.
[](https://www.loanbaba.com/gold-loans/sbi-gold-loan.html)Eligibility for SBI Gold Loans
To apply for SBI gold loans, borrowers must meet these criteria:
- Age: Minimum 18 years (21 for Loan against Sovereign Gold Bonds). [](https://www.paisabazaar.com/sbi-bank/gold-loan/)
- Income: Steady source of income; no proof required for SBI employees or pensioners. [](https://www.bankbazaar.com/personal-loan/sbi-gold-loan.html)
- Collateral: Gold ornaments (18-22 carat) or specially minted gold coins (max 50 grams) sold by banks. No 24-carat gold bars or biscuits. [](https://sbi.co.in/web/personal-banking/loans/sbi-realty-gold-loan)
- Realty Gold Loan: Must have an existing or new SBI housing loan. [](https://bank.sbi/web/personal-banking/loans/sbi-realty-gold-loan)
- NRIs: Eligible with a temporary local address. [](https://sbi.co.in/web/personal-banking/loans/gold-loan/personal-gold-loans)
Documents Required
Prepare these documents for SBI gold loan applications:
- Application Form: With two passport-size photographs.
- ID Proof: PAN card, driver’s license, voter’s ID, etc.
- Address Proof: Utility bill, passport, etc.
- Gold Documents: Demand Promissory Note, Gold Ornaments Take Delivery Letter, Arrangement Letter.
- Witness Letter: For illiterate borrowers.
- Realty Gold Loan: Housing loan documents or project escalation proof. [](https://sbi.co.in/web/personal-banking/loans/sbi-realty-gold-loan)
How to Apply with Loanpao
Loanpao simplifies the application process:
- Visit Loanpao’s website or SBI’s portal via YONO app.
- Fill out the online form with details like loan amount, name, mobile number, and PIN code.
- Submit gold ornaments at the nearest SBI branch for appraisal.
- Receive same-day approval and disbursal upon gold valuation. [](https://groww.in/loans/sbi-gold-loan-interest-rates)
Tip: Apply via YONO app for zero processing fees.
[](https://indiagold.co/blogs/sbi-gold-loan-per-gram-rate)Frequently Asked Questions
Yes, you can avail up to three gold loans within SBI’s ceiling of ₹50 lakh.
[](https://sbi.co.in/web/personal-banking/loans/gold-loan/personal-gold-loans)
No, a co-applicant is not necessary, but joint applications are allowed.
[](https://www.bankbazaar.com/personal-loan/sbi-gold-loan.html)
Yes, deductions are available under Section 24(b) (interest), Section 80C (principal), and Section 80EEA (interest), subject to conditions.
[](https://bank.sbi/web/personal-banking/loans/sbi-realty-gold-loan)
Up to 75% for EMI-based loans; 65% for bullet repayment schemes.
[](https://www.indiafilings.com/learn/sbi-gold-loan/)