While many people in Chennai look to secure credit, Gold Loans have become a popular funding option. Gold Loans involve taking credit based on the value of your gold holdings. They are generally a faster processing option compared to unsecured loans, subject to eligibility and documentation requirements as per RBI guidelines.
Gold Loans offer relatively attractive interest rates compared to unsecured loans. Individuals seeking Gold Loans in Chennai may consider comparing different offers available from different banks and Non-Banking Financial Companies (NBFCs) to find good rates.
Leading NBFCs Offering Gold Loans in Chennai
Top NBFCs in Chennai offer gold loan solutions with flexible terms, competitive interest rates, and minimal documentation requirements. Available options for Gold Loans in Chennai include the following:
1. IIFL Finance:
It is one of India’s largest Gold Loan providers and offers various schemes designed to meet different customer needs. The interest rates on their Gold Loans range from 11.88% to 27% per annum. They have a flexible processing fee starting from Rs 0, making it more affordable for borrowers. Customers can avail of loan amounts starting from Rs 3,000 and going up to as per RBI-prescribed LTV caps up to 85% for loans up to ₹2.5 lakh, 80% for loans between ₹2.5 lakh and ₹5 lakh, and a maximum of 75% for loans above ₹5 lakh of the market value of their gold, depending on the purity of the gold.*
*Interest rates and loan amounts are subject to scheme eligibility.
*Terms and Conditions apply. Visit the IIFL Finance official website for more information.
2. Muthoot Finance:
Muthoot Finance is recognised for offering a range of flexible loan schemes tailored to meet customers’ diverse needs. Whether you require a small amount for a personal need or a large amount for business, they can provide a loan range between Rs 1,500 and Rs 5 Crore. It is a convenient option for someone looking to unlock the value of their gold in times of need, subject to RBI’s collateral weight limits (e.g., maximum 1 kg gold ornaments per borrower, 10 kg silver, etc.)
3. Manappuram Finance:
Manappuram Finance offers efficient and flexible Gold Loans, allowing individuals to borrow funds by pledging their gold ornaments. It provides hassle-free Gold Loans of up to Rs 1.5 Crore with minimal documentation for smaller ticket sizes; loans above ₹2.5 lakh require repayment capacity checks as per RBI guidelines. The company ensures secure storage of gold and offers easy disbursal through its extensive branch network and digital platforms.
4. Bajaj Finance:
If you are looking for a high-value Gold Loan in Chennai, Bajaj Finance offers flexible tenure options suitable for customers with substantial gold assets. The company provides Gold Loans ranging from Rs 5,000 to Rs 2 Crore, while supporting an efficient application process that requires minimal documentation. However, loans for very high amounts are subject to RBI’s collateral weight caps and Loan-to-Value (LTV) limits, which restrict the maximum permissible loan based on the assessed value of your gold assets. Borrowers should ensure that their loan amount complies with the RBI’s regulations and lending policies.
5. TVS Credit:
TVS Credit offers flexible Gold Loans in Chennai, featuring minimal documentation, processed with minimal documentation, subject to eligibility and RBI norms, and secure storage. They cater to diverse financial needs with tailored repayment options and special schemes for women. They keep the pledged gold secured with 24/7 AI-powered systems, ensuring safety and peace of mind.
Top Banks Offering Competitive Gold Loan Rates in Chennai
Several leading institutions in Chennai offer competitive Gold Loan rates, combining affordability with trusted service and convenient repayment options.
1. State Bank of India (SBI):
Being India’s largest public sector bank, SBI offers competitive rates and a wide branch network, making it accessible for many borrowers. The bank provides Gold Loans ranging from Rs 20,000 to Rs 50 Lakh at competitive annual interest rates. Borrowers can choose between EMI-based repayment or bullet repayment options. One may apply online via the YONO SBI app or by visiting a branch.
2. Indian Bank:
Indian Bank is a major Gold Loan provider reflecting a strong presence and customer trust in the region. It caters to both personal and agricultural needs of borrowers. Loan amounts can reach up to Rs 10 Lakh, with repayment options including bullet payments and EMIs. The application process requires minimal documentation, and the pledged gold is securely stored.
3. Bank of Maharashtra:
Bank of Maharashtra offers Gold Loans starting from Rs 20,000 up to Rs 20 Lakh. Borrowers can choose between EMI-based repayment or bullet repayment options. The bank offers fixed interest rates with monthly compounding without requiring any guarantor. Applicants aged 18 and above can apply online or at any branch.
4. Canara Bank:
Canara Bank runs a Swarna Scheme, under which it offers Gold Loans from Rs 5,000 to Rs 35 Lakh. Repayment options include bullet payments and monthly interest schemes with flexible tenures. The bank accepts gold ornaments and specially minted coins (up to 50 grams per customer) as collateral.
5. ICICI Bank:
ICICI Bank offers Gold Loans ranging from Rs 50,000 to Rs 2 Crore with flexible tenures of 6 or 12 months. The repayment options include bullet payments, EMIs, and partial repayments. Pledged gold is securely stored, ensuring safety and peace of mind for borrowers.
Bullet repayment loans are capped at 12 months as per RBI rules; they are renewable under certain conditions.
Things to Keep in Mind When Taking a Gold Loan
Before taking a Gold Loan in Chennai, check out the following essential factors to find better value and terms for your financial needs:
- Interest Rate: Select a plan with a lower interest rate to minimise the total amount of interest paid on the loan.
- Processing Fees: Some lending institutions do not charge processing fees for loans up to a specified amount, which can result in significant savings.
- Loan-to-Value (LTV) Ratio: The Reserve Bank of India allows slab-wise LTV ratios: up to ₹2.5 lakh → 85%, ₹2.5 – 5 lakh → 80%, and above ₹5 lakh → 75%. This means the maximum you can borrow depends on your loan amount bracket and the current gold price in Chennai.
- Repayment Flexibility: If you plan on borrowing a certain amount and then intend to pay it back all at once or in instalments, it can be nice to have flexible repayment options* based on how much you can repay.
*Interest due dates depend on the repayment frequency of the selected scheme. - Loan Tenure: Shorter terms have lower interest costs but higher EMIs. Use an online calculator to choose a tenure based on your repayment capacity.
- Security of the Gold Assets: The lending institution should follow a safe and secure method of storing your gold as collateral.
- Borrowers’ Rights: Borrowers have rights, including the right to be present during the assaying of their gold, to receive official assay certificates, and to obtain a refund of any surplus amount following an auction in the event of default. Ensure your lender complies with these protections.
Tips for Availing the Best Gold Loan in Chennai
To secure the best Gold Loan in Chennai, it’s essential to follow these smart tips to maximise benefits and minimise costs:
- Compare Multiple Lenders: Gold Loan Interest rates and terms vary between lending institutions. Comparing helps select the best offer.
- Maintain a Good Credit Score: Although Gold Loans are secured, a good credit score helps in negotiating better terms.
- Understand the Terms: Read the loan agreement carefully to be prepared for the applicable charges and conditions.
- Select the Right Repayment Option: Depending on your cash flow, choose from EMI, bullet repayment, or interest-only payment options for flexibility.
Some lenders provide doorstep services however, ensure that valuation and documentation strictly follow RBI guidelines, including proper assaying, KYC compliance, and disbursal directly into the borrower’s bank account, to ensure secure and transparent transactions.
Conclusion
A Gold Loan is a convenient and common mode of secured credit in Chennai. It enables one to liquidate the value of gold by taking loans with quick loan approval and easy disbursal. Whether you require funds for personal expenditure, education, medical bills, or business needs, a Gold Loan provides easy disbursal, lesser paperwork, and comparatively lower interest rates than unsecured loans. If you are searching for a Gold Loan in Chennai, it is important to compare offers from different banks and NBFCs to find the most suitable rates and terms. Gold Loans can be processed with a relatively faster turnaround compared to unsecured loans, subject to documentation and eligibility checks.
