SBI Gold Loan Explained

State Bank of India offers a gold loan of up to Rs 20 lakhs to its existing customers. The loan amount can be availed against their gold ornaments. The loan can be availed to cater to any personal need like a child’s education, medical emergency, expansion of business, vacation, marriage, and other financial crises for which an individual may be facing a shortage of cash. However, SBI Gold Loan cannot be used for illegal acts and unsafe purposes. 

Features of SBI Gold loan 

SBI gold loan has attractive features which are mentioned below :

Loan amount

A loan up to 20 lakhs can be availed under this scheme. In semi-urban and rural areas, a minimum loan amount of Rs 10000 can be availed while Rs 20000 can be availed in metro and urban areas. The market value of the jewelry you pledge determines the loan amount you can avail of. The applicant receives 75% of the cost of their gold guaranteed.

Calculate SBI Gold Loan EMI

You can use many online gold loan calculators like to calculate the approximate EMI you’ll have to pay when you take a gold loan from the State Bank of India.

Flexible repayment

The tenure of gold loans ranges between 30-36 months. The monthly installments start a month after the date of loan disbursement. An individual can also choose short repayment tenure of 1-2 years, but it must not exceed 36 months.

Return of security

The gold ornaments provided as collateral are only returned after the full loan repayment, thereby lowering the chances of default.

Minimal documentation and quick approval

Availing a gold loan is a quite simple process as the documentation process is minimal. The loan is approved instantly once the documents are submitted. Your income proof and credit score are not taken into consideration for approval of the loan.

Low processing fee

A small processing fee is charged by SBI to process the loan.


Prepayment of gold loans is allowed by the bank, and no charges are levied on it.

Exclusive benefits

SBI offers attractive rates and charges to the existing customers of the bank. Customers who made timely payments in the past can avail of the benefit of a low rate of interest. 

Eligibility Criteria of SBI Gold Loan

Gold Loan

Age – The age of the applicant at the time of applying must be 21 years or above. Students, salaried, self-employed professionals, homemakers, a businessmen, can apply for the loan.

SBI Customer – Only an existing customer of SBI can apply for an SBI gold loan.

Security – Only by offering gold as collateral, the borrower can avail of the loan.

Gold owner – The pledged security must belong to the borrower of the loan. 

Documents required for SBI gold loan

  • ID Proof ( PAN Card / Driving License / Voter ID card )
  • Address proof ( Passport / Utility bill / Aadhaar card )
  • Two passport-sized photographs of the applicant along with the gold loan application form

Also, let us have a look at the range of documents that will be required before disbursement: 

1)Demand Promissory Note

2) Gold Ornaments Delivery Letter

3) Arrangement Letter

Gold loan schemes of SBI

SBI provides customers with different schemes for repayment – 

A gold loan with bullet repayment – Under this scheme, the entire principal amount of the loan can be paid at the end of the loan tenure. The monthly payment gets lowered, and the burden of the customer gets reduced.

Gold loan for agriculture – This scheme is offered to farmers who can cater to their farming expenses by getting a loan against their gold ornaments. They only need to give proof of ownership and farming activity of agricultural land, mentioning the purpose of the loan. The rate of interest is low on rustic gold loans as compared to SBI regular gold loans.

Anyone can avail of SBI gold loan by providing their gold as collateral to meet their personal or business needs. 

Why shall we choose SBI Gold Loan?

The State Bank of India has captured the right name in the market. They are a varied range of attractive gold loan schemes that can be offered by the bank. The interest rate is not high; instead, a small nominal amount is chargeable.

It is entirely your free will to use the loan for any purpose. It is a flexible option with ease of payment and opportunities for tenure. The amount of credit will be given depending on the weight of the gold ornament.

Many customers can fulfill their financial needs when they arise effectively with the help of an SBI Gold Loan. 

Advantages of securing a Sbi Gold Loan :

1) Security

You can remain at peace as it is the most secure medium. Getting some amount of instant cash in hand can be very helpful. You can meet your financial obligations and ensure a secure family future. 


Being consistent and regular brings proven results. After the loan is processed, you can expect proper cash flow at specific intervals and meet your financial needs.


It is a hassle-free process. The entire process of loan processing is transparent and flexible. 


  • A Plus bonus for a rider option is also available. Some of the options can include :
  • Term rider
  • Accidental Death Benefit
  • Permanent Disability Benefit Rider

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