SBI offering gold loan at 7.5% interest rate - know how to apply on YONO app step by step

The largest public sector bank, the State Bank of India has recently revised its gold loan rates with the lowest interest rate now at 8.25%. An additional 0.75% concession will be available up to September 30, 2021. This will further lower the interest rate to 7.50% if applied online till September 30. 

You can access the SBI gold loan services through the SBI YONO mobile app with less paperwork and less processing time, easier and faster. Due to the ongoing COVID-19 pandemic, the demand for gold loans has been strong. The interest on gold loans varies, ranging between 7% and 29%. 

Gold loans are the safest and easiest way to procure instant funds during an emergency. Loans against gold is a secured loan taken by the borrower from a lender in lieu of their gold ornaments or other gold items as collateral. The loan amount in such cases is a certain percentage of the gold kept as security - up to 80% based upon the current market value and the quality of gold.

The State Bank of India has fixed its maximum loan amount at Rs 50 lakhs and the minimum loan amount at Rs 20,000. The processing fees of the service is 0.50% of the loan amount in addition to the applicable GST (Minimum Rs. 500 + applicable GST). 

Gold appraiser charges will have to be paid by the loan applicant. The loan's tenure is 36 months

How to apply for gold loan via SBI YONO app

Log in to the YONO portal - then go to the menu and select the loans option (third option).

After selecting the gold loan option, 'Apply Now' will appear on the page. 

Online application form will come with drop-boxes as - Residential Type, Occupation Type, and Net Monthly Income. 

Fill the form with details like - ornament type, quantity, the exact carat of the gold, and net weight of the gold.

Customers will have to visit the branch physically with the ornaments, 2 photos, and the KYC documents.