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Key Features of SahiBandhu Gold Loan

Below are the key features of the South Indian Bank gold loan

Minimum loan amountRs. 5,000
Maximum loan amountRs. 10 Crores
Security22 carat Gold jewellery/ ornaments
Loan typesDemand Loan/ Term Loan/ Overdraft/ Term Loan with Bullet Repayment 
Scheme typesGold Loans with repayment at the end of the loan tenure, Gold Loans with monthly repayment options, and Gold Loan Takeover Scheme
PurposeAny lawful personal & consumption needs
Tenure3 to 36 months
Handling/ safe custody chargesNil
Rate per gram/ LTVUp to 85% as fixed by the bank from time to time
Interest rateDepends on the scheme chosen
Processing feeNil

Benefits of South Indian Bank Gold Loan

Below are some of the key benefits of South Indian Bank gold loan: 

  • Multiple schemes: South Indian Bank offers gold loans with repayment at the end of the loan tenure, gold loans with monthly repayment options, and gold loan takeover scheme
  • Flexible loan amount: You can avail of as low as Rs. 5,000 and as high as Rs. 10 Crores as loan amount.
  • Affordable interest rate: South Indian Bank gold loan rate of interest is highly affordable and depends on the type of scheme to be applied for.
  • Gold Loan Takeover Scheme: The bank offers takeover scheme for individuals having gold loan facilities with other banks/ NBFCs.  
  • High rate per gram/ LTV: You can get up to 85% rate per gram/ LTV, depending on the type of scheme and gold’s value.
  • Different benchmark rates: The bank offers gold loan interest rates linked to current Repo Rate decided by the RBI as well as its current MCLR.
  • Multipurpose: The loan amount can be used for meeting any lawful personal and consumption needs.

Zero processing fee: No processing charges are involved in getting a gld loan from South Indian Bank.

South Indian Bank Gold Loan Interest Rates

Following are the details of the South Indian Bank gold loan interest rates:

Floating Rate Schematic Loans Linked to Repo Rate

Scheme TypeSpreadEffective Interest Rate
Gold Power- ODRepo Rate + 8.55%14.80% p.a.
Gold Loan Personal (EMI/OD)Repo Rate + 8.30% to Repo Rate + 8.55%14.55% p.a. to 14.80% p.a.
Gold Max/ Gold Max Agri SchemesRepo Rate + 3%9.25% p.a.

Note: As of February 7, 2025, the repo rate in India is 6.25%.

Schematic Loans Linked to MCLR

Fixed Interest Rate
Scheme TypeSpreadEffective Interest Rate
Gold Loan Scheme (Personal)1 Year MCLR + 0.45% or 3 Month MCLR + 0.85%10.55% or 10.80% p.a.
Micro Gold1 Year MCLR + 2.65% to 1 Year MCLR + 3.15%12.75% to 13.25% p.a.
Gold Loan Agri1 Year MCLR + 0.30% to 1 Year MCLR + 1.65% or 6 Month MCLR + 0.50%10.40% to 11.75% or 10.45% p.a.
Floating Interest Rate
Scheme TypeSpreadEffective Interest Rate
Gold Power1 Year MCLR + 3.90%14% p.a.

Note: 3-Month, 6-Month and 1-Year and MCLRs effective from 20th January 2025 are 9.95%, 10% and 10.10% respectively.

Compare South Indian Bank Gold Loan Interest Rates with Other Lenders

Below is the comparison between South Indian Bank gold loan interest rates with other lenders:

South Indian Bank Starts from 9.25% per annum
SahiBandhuStarts at 0.79% per month
RupeekStarts at 0.74% per month or 8.88% per annum
Muthoot Fincorp9.95% to 23% per annum
DBS BankUp to 14% per annum
IndiagoldStarts at 0.85% per month
Oro MoneyStarts at 0.83% per month or 9.90% per annum
IIFL FinanceStarts at 0.99% per month or 11.88% to 27% per annum
SBI9% to 10.25% per annum
ICICI Bank9.25% to 18% per annum
Canara BankStarts at 8.75% per annum

Types of South Indian Bank Gold Loan

South Indian Bank offers the following types of gold loan schemes:

  • Gold Loans with repayment at the end of the loan tenure
  • Loan amount: Rs. 5,000 - Rs. 10 Crores
  • Security: Pledge of 22 carat gold jewellery/ ornaments
  • Type: Demand Loan/ Term Loan
  • Tenure: 3 months, 6 months, and 12 months variants
  • Rate per gram/ LTV: Up to 73% as fixed by bank from time to time
  • Gold Loans with monthly repayment options
  • Loan amount: Rs. 5,000 - Rs. 10 Crores
  • Security: Pledge of 22 carat gold jewellery/ ornaments
  • Type: Demand Loan/ Term Loan/ Overdraft
  • Tenure: 12 Months to 36 Months through monthly interest servicing or EMI
  • Rate per gram/ LTV: Up to 75% as fixed by bank from time to time
  • Gold Loan Takeover Scheme
  • Target customers: Individuals having gold loan facilities with other banks/ NBFCs 
  • Security: Pledge of 22 carat gold jewellery/ ornaments
  • Type: Term Loan with Bullet Repayment options
  • Tenure: 3 months, 6 months, 12 months variants 
  • Rate per gram/ LTV: Up to 85% as fixed by bank from time to time

Fee & Charges for South Indian Bank Gold Loan

The fees and charges involved in availing of a South Indian Bank gold loan are:

  • Processing fee: Nil 
  • Handling charges: Nil to Rs. 2.50 per Rs. 1,000 of the loan amount
  • Penal interest: 2% p.a. for the defaulted amount for the defaulted period
  • Service charge: 6% p.a. on the defaulted amount for the defaulted period

South Indian Bank Gold Loan Eligibility Criteria

The basic eligibility criteria to apply for a gold loan at South Indian Bank are: 

  • Minimum age: The applicant should be at least 18 years old when applying for the loan. 
  • Maximum age: The maximum age of the borrower should not be beyond 65 years on loan maturity.
  • Nationality: The borrower must be a citizen of the country where the loan is being availed.
  • Gold: The borrower should own 22 carat gold jewellery or ornaments that can be pledged as collateral.

Documents Required for South Indian Bank Gold Loan

You will be required to submit the following documents to apply for South Indian Bank’s gold loan:

  • Identity proof: Such as an Aadhaar Card, PAN Card, Passport, etc.
  • Address proof: Ssuch as Utility Bills. Rental Agreement, Passport, etc.
  • Recent passport-sized photograph.
  • The gold jewelry that will be used as collateral.

Gold Loan offers from India’s most
trusted banks

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Get Gold Loan with No EMI Option from Rupeek

Rupeek Gold Loans are instant secured loans with no EMI option at interest rate starting at 8.88% p.a. You can avail of emergency loan ranging from Rs 50000 to Rs 20 Lakhs against gold jewellery, coins & ornaments. With bullet repayment option you repay entire loan at the end of the tenure.

FAQs

What is a South Indian Bank gold loan?

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South Indian Bank gold loan is a gold loan scheme that can be obtain against the 22 carat gold jewellery or ornaments.

What is the maximum loan amount I can avail?

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You can avail of a maximum gold loan amount of Rs. 10 Crores from South Indian Bank.

What is the interest rate on South Indian Bank gold loans?

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The interest rate on South Indian Bank gold loans starts from 9.25% p.a.

Is there a minimum gold requirement for the loan?

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You must have 22 carat gold jewellery or ornaments to avail of South Indian Bank gold loan.

Can I apply for a gold loan if I am not an account holder with South Indian Bank?

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Yes, you can apply for a gold loan at South Indian Bank even if you are not holding an account with them.

How long does it take to get a gold loan approved?

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It can take from a few hours to a couple of days to get a gold loan approval, depending on the bank's policies and procedures.

Can I repay the loan before the tenure ends?

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Yes, you can repay a gold loan taken from the South Indian Bank before the tenure ends. However, you may have to pay prepayment charges.

Are there any processing fees for gold loans?

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The South Indian Bank does not levy any processing fee on gold loans.

Will I get the same gold back after repayment?

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Yes, you should get the same gold back after you repay the gold loan in full.

How does the bank ensure the safety of my gold?

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South Indian Bank ensures the safety of the gold pledged by you by storing it in secure storage facilities with modern age security measures, including sealing the jewelry in tamper-proof packet and providing a receipt on deposit, guaranteeing you the protection of gold against theft or loss.

How do I close my gold loan account?

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To close your South Indian Bank gold loan account, you can visit the nearest branch or contact their customer care.