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Karthiga

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Published on: Jun 24, 2026

Sbi Gold Loan

State Bank of India (SBI) is one of the largest banks among the public sector banks in India. The bank offers Sbi Gold Loan scheme to provide loan against gold jewellery which can be used for several requirements such as marriage, business expansion, education of the child, building a property, etc. Existing SBI customers can avail gold loan of up to Rs. 20 lakhs by pledging of gold ornaments which includes gold coins sold by banks. In this article, we look at the Sbi Gold Loan scheme in detail.

Eligibility Criteria

The following are the eligibility criteria for availing gold loans from SBI.
  • Any applicant age is above 21 years of age at the time of applying for the loan.
  • Anyone with a constant source of income can avail the loan which also includes bank employees and Pensioners.

Amount of Loan

The minimum and maximum amount of loan can be acquired as specified below: Minimum: The minimum loan amount of Rs. 10,000 can be obtained. Maximum: The maximum loan amount of up to Rs. 20 Lakhs can be obtained.

Types of Sbi Gold Loans

The SBI has gold loan schemes for professionals and salaried individuals.  The amount received as a loan can be used for either multiple or specific purposes.

Margin

The margin for the Sbi Gold Loan is 25% of the value of the gold.

Security  

The gold ornaments duly verified for quality and quantity are pledged as security and are returned when the loan amount is repaid.

Repayment Period

The repayment period fixed for the borrower is up to 3 years. Interest will be levied from the account at a monthly basis but will become due for payment along with principal only at the maturity.

Processing Fees

For BIS Hallmarked Jewellery or Ornaments and specially minted Gold Coins sold by Banks: The charge will be around 0.50% of the loan amount or a minimum amount of Rs. 250, and the maximum amount of Rs. 500 and additionally with applicable services tax is remitted. For Non-Hallmarked Jewellery or Ornaments: Up to Rs.25000: The charge for your processing your loan application will be of Rs. 250 per application with applicable service tax. Above Rs.25000: The charge will be around 0.50% of the loan amount with applicable service tax or amount of Rs.250 with applicable services tax whichever is higher is remitted.

Loan to Value Ratio

Once the value of gold is calculated, SBI will apply a Loan to Value (LTV) of up to 75% to calculate your gold loan amount eligibility. If you are willing to take a loan amount lower than your maximum LTV, SBI may offer you a lower interest rate. The LTV ratio will be computed against the total outstanding in the account, including accrued interest, and the current value of gold jewellery accepted as security or collateral. The following points have to be remembered for this purpose:
  • The loan amount will be sanctioned with a margin of 35%.
  • The LTV of 75% has to be maintained throughout the tenor of the loan.
  • The LTV ratio has to be computed against total outstanding in the account including accrued interest. 
  • The LTV ratio will be computed against the current value of gold.
  • In case the LTV Ratio crosses the stipulated limit of 75% on account of fall in gold prices, the customer will be intimated to replenish the margin either by way of a cash deposit or additional gold ornaments or coins.

Documents Required

The following are the documents which are necessary for processing your loan.
  • Application Form for Gold Loans
  • Two copies of photographs of the borrower(s)
  • Proof of Identity such as PAN card, Aadhar card
  • Proof of Address such as voter ID, ration card

Interest Rate

The interest rates charged on SBI's gold loan is 2.15% above the marginal cost of funds based lending rate (MCLR) for 1 year. Currently, it is 11.05% as mentioned on SBI's website.

Application Procedure

The eligible applicant who wants to apply for the Sbi Gold Loan has to approach the nearest SBI branch of your area and collect the application form from the bank. Complete the application form with the necessary details and attach the required documents. After filling the form, submit the same to the appropriate bank.
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Frequently Asked Questions

Common questions about SBI Gold Loan Services.

As per the article, SBI offers gold loans up to Rs. 20 lakhs. Existing SBI customers can avail a gold loan of up to this amount by pledging their gold ornaments or gold coins sold by banks.
The minimum loan amount that can be availed under the SBI Gold Loan scheme is Rs. 10,000. SBI provides gold loans starting from this minimum threshold.
Any individual above 21 years of age with a consistent source of income, including salaried individuals, professionals, bank employees, and pensioners, can apply for an SBI Gold Loan.
As mentioned in the article, the margin for an SBI Gold Loan is 25% of the value of the pledged gold. This means that the loan amount will be sanctioned with a margin of 25%.
According to the article, the repayment period fixed for an SBI Gold Loan is up to 3 years. Interest will be levied on a monthly basis but will become due for payment along with the principal only at maturity.
The documents required for an SBI Gold Loan include an application form, two copies of photographs of the borrower(s), proof of identity (PAN card, Aadhaar card), and proof of address (voter ID, ration card).
As stated in the article, the interest rate charged on SBI's gold loan is 2.15% above the marginal cost of funds based lending rate (MCLR) for 1 year, which currently stands at 11.05% as per SBI's website.
The article mentions that SBI will apply a Loan to Value (LTV) ratio of up to 75% to calculate the gold loan amount eligibility. The LTV ratio should be maintained throughout the loan tenor.
The processing fee for an SBI Gold Loan varies based on the type of gold. For BIS Hallmarked Jewellery or Ornaments and specially minted Gold Coins, it ranges from 0.50% of the loan amount or a minimum of Rs. 250 to a maximum of Rs. 500, plus applicable service tax. For Non-Hallmarked Jewellery or Ornaments, different charges apply based on the loan amount.
According to the article, SBI offers gold loan schemes for professionals and salaried individuals. The amount received as a loan can be used for multiple or specific purposes.