Central Bank Gold Loan Interest Rate 2024: Processing Fee, Documents Required, Eligibility, How to Apply

Investing in gold is a smart financial decision, and a gold loan can provide a convenient solution during financial emergencies or to meet your short-term needs. Central Bank of India offers its customers several services, including different loan schemes. One major loan scheme of the Central Bank is the gold loan.

A gold loan from the Central Bank of India is an excellent option for quick and hassle-free access to funds. This article explores the Central Bank of India's gold loan interest rates for 2024, providing valuable insights into the loan's application process, eligibility criteria, required documents, and more.

Central Bank of India Gold Loan Interest Rate 2024

The Central Bank of India offers competitive interest rates on gold loans to its customers. The interest rate for gold loans in 2024 is determined based on market fluctuations and the loan amount. Currently, the Central Bank of India's gold loan interest rates are as follows:

Central Bank Gold Loan Rate per Gram

The gold loan amount per gram offered by the Central Bank fluctuates from day to day based on gold rate fluctuations on a daily basis, depending on the purity of the gold. The gold loan per gram usually ranges between Rs. 1,755 to Rs. 2,145. 

Central Bank of India Agriculture Gold Loan Interest Rate

Under the Agri Gold loan scheme, the Central Bank of India offers special interest rates for farmers and persons engaged in agriculture and allied activities. This loan scheme helps to meet agricultural credit needs by providing affordable loans against gold. 

These interest rates are usually lower than regular gold loans, promoting financial support for the farming community. The interest rate offered under the Central Bank agricultural gold loan scheme is 7.00% for gold loans with interest subvention up to Rs. 3 lakh and 7.25% for agriculture gold loans other than interest subvention.

Farmers can benefit from special interest rates on gold loans offered by the Central Bank of India. With attractive rates and flexible repayment options, farmers can leverage their gold assets to meet agricultural expenses, fund new projects, or expand their operations.

Central Bank Gold Loan Maximum Limit

Central Bank of India sets a maximum limit on the gold loan amount that can be availed. The maximum limit of a borrower depends on his/her eligibility, determined by factors like the purity of gold, prevailing market rates, and the loan-to-value ratio set by the bank. However, the maximum limit up to which a borrower can receive a gold loan is Rs. 40,00,000 against the value of their gold assets.

Central Bank Gold Loan Eligibility Criteria

Individuals must meet certain criteria to be eligible for a gold loan from the Central Bank of India, which are as follows:

• Borrower must be an Indian citizen
• Borrower’s age must be at least 18 years
• Borrower should have a steady source of income
• Borrower must be the owner of the gold to be pledged for the loan

Central Bank of India Gold Loan Process

Applying for a Central Bank gold loan is simple and convenient. Customers can apply by visiting a nearby branch. To apply for a Central Bank of India gold loan, follow the steps given below:

Step 1: Visit the nearest Central Bank of India branch.

Step 2: Fill out the gold loan application form with accurate details.

Step 3: Submit the application and required documents to the bank.

Step 4: Upon document verification, the bank will appraise your gold and finalise the loan amount.

Step 5: The funds will be disbursed to your bank account after loan approval.

Documents Required for Central Bank Gold Loan

Applying for a gold loan requires submitting specific documents. These may include the following:

• Proof of identity like Aadhaar card, PAN card, Voter ID, driver’s licence, etc.
• Address proof like utility bills, passport, rent agreement, etc.
• Income proof like Income tax returns, Form 16, salary slip, etc.
• Documents showing the ownership of the gold pledged for the loan
• Two passport-size photos

Please note that the bank may request additional documents based on individual circumstances.

Central Bank Gold Loan Processing Fee

Central Bank of India charges a processing fee for gold loans. This fee is a nominal amount that covers administrative costs related to loan processing. The fee is calculated as a percentage of the loan amount and covers the administrative costs incurred during the loan processing. 

The Central Bank charges 0.50% of the loan amount as processing fees. The minimum processing fee is Rs. 250, which can go up to Rs. 5,000.

Note: The Central Bank Personal gold loan scheme processing charges are waived up to 31.03.2024.

Central Bank Gold Loan Appraiser Charges

Appraiser charges are part of the gold loan process. These charges cover the expenses associated with professionally evaluating the quality and market value of the gold ornaments pledged for the loan. 

Central Bank of India engages certified appraisers to determine the value of the gold offered as collateral. The appraiser charges are borne by the borrower and are included in the overall cost of the loan. The charges may vary based on the amount of gold pledged.

Central Bank Gold Loan Interest Rate Calculator

The Central Bank of India calculates gold loan interest based on the loan amount, repayment tenure, and applicable interest rate. The bank uses a simple interest calculation method. Customers can also use online loan interest calculators to calculate the interest on the loan.

How to Close Gold Loan in Central Bank?

Borrowers can visit the branch where they availed the loan to close a gold loan in the Central Bank of India. You need to pay the outstanding loan amount, including interest and other charges, to complete the closure process. The bank will release the gold assets once the settlement is made.

Closing your gold loan in the Central Bank of India is a seamless process. Follow the steps listed below:

Step 1: Visit the Central Bank of India branch where you have taken the loan.

Step 2: Inform the branch officials about your intention to close the gold loan.

Step 3: Present the loan account details and required documents.

Step 4: Settle the outstanding loan amount, including any accrued interest and applicable charges.

Step 5: Obtain an acknowledgement of loan closure and collect any pledged gold.

Central Bank Gold Loan Customer Care/ Contact Number

For any queries or assistance related to gold loans from the Central Bank of India, borrowers can reach out to their dedicated customer care team at 1800 22 1911. The customer care team will provide prompt assistance and address queries.

Central Bank of India gold loan interest rates are competitive with flexible repayment options and a hassle-free application process. With minimal documentation requirements and easy eligibility criteria, borrowers can enjoy the benefits of leveraging their gold assets to address financial needs. Apply for a gold loan from the Central Bank of India today and experience the convenience it offers.

Other Banks Gold Loan Interest Rates:
1. ICICI Bank Gold Loan Interest Rate
2. HDFC Gold Loan Interest Rate 
3. Bank of Baroda (BOB) Gold Loan Interest Rate
4. Canara Bank Gold Loan Interest Rate
5. SBI Gold Loan Interest Rate
6. Axis Bank Gold Loan Interest Rate