South Indian Bank Gold Loan

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South Indian Bank Gold Loan Details Updated on
Loan Amount Rs. 5,000 to Rs. 10 crores
Loan Tenure 1 month to 36 months
Interest Rate 1 Year MCLR + 1.65% onward
SIB Gold Loan Schemes For the personal segment, business segment, agriculture segment, and one-month gold loan

South Indian Bank (SIB) Gold Loan is one of the best ways to resolve any financial emergency. This bank offers various gold loan products to its customers at a cheaper rate of interest to meet their urgent financial needs with minimal paperwork. There are various loans against gold schemes for individuals, businessmen, agriculturists, self-employed individuals, and more.

You can find details about the South Indian Bank gold loan on Loanbaba.com, so keep a check on this page for further updated information.

Features of South Indian Bank Gold Loan

Here are the features of the SIB Gold Loan:

  • Loan to Value (LTV) ratio up to 85% (and beyond) of the pledged gold’s current market value
  • Loan against 22 carats of gold jewellery
  • The loan amount is between Rs. 5,000 and Rs. 10 crores
  • The borrowing is available for personal use, business, agriculture
  • You can avail of Term Loan, Demand Loan, and Overdraft
  • No charges for the safe custody of gold ornaments
  • Tenure is between 1 month to 36 months
  • Flexible tenures available as well – 3 months/6 months/12 months
  • Repayments – monthly interest, EMIs, or bullet repayments

Types of South Indian Bank Gold loans

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

1. South Indian Bank Gold Loan – Personal Segment

A) Repayment at End of the Tenure
Purpose To meet any lawful consumption and personal needs
Loan Amount Rs. 5,000 to Rs. 10 crores
Collateral You have to pledge 22 carats of gold jewellery
Interest Rate
  • 1 Year MCLR + 3.65%
  • 6 Month MCLR + 4.15%
  • 3 Month MCLR + 4.60%
  • 1 Month MCLR + 4.15%
Type of Loan Term Loan/Demand Loan
Tenure In the variants of 3 months, 6 months, and 12 months
LTV/Per Gram Rate Up to 73% of the gold’s current market value
Minimum Chargeable Interest Rs. 50 or minimum for 5 days, whichever is higher
Safe Custody/Handling Charges No charges
B) Monthly Repayments
Purpose To meet any lawful consumption and personal needs
Loan Amount Rs. 5,000 to Rs. 10 crores
Collateral You have to pledge 22 carats of gold jewellery
Interest Rate 1 Year MCLR + 3.65%
Type of Loan Term Loan/Overdraft/Demand Loan
Tenure
  • 12 months to 36 months
  • Pay monthly interest or choose the EMI option
LTV/Per Gram Rate Up to 75% of the gold’s current market value
Minimum Chargeable Interest Rs. 50 or minimum for 5 days, whichever is higher
Safe Custody/Handling Charges No charges

2. South Indian Bank Gold Loan – Agriculture Segment

Repayment at End of Tenure
Purpose To serve the need for agricultural crop production or allied activities
Loan Amount Rs. 5,000 to Rs. 10 crores
Collateral You have to pledge 22 carats of gold jewellery
Interest Rate
  • 6 Month MCLR + 1.85%
  • 1 Year MCLR + 1.65%
Type of Loan Term Loan/Demand Loan
Tenure 6 months or up to 12 months
LTV/Per Gram Rate Up to 85% of the gold’s current market value
Minimum Chargeable Interest Rs. 50 or minimum for 5 days, whichever is higher
Safe Custody/Handling Charges No charges
  • You can also avail of KCC (Kisan Credit Card) scheme by pledging 22ct gold jewellery with agriculture interest subvention.

3. South Indian Bank One Month Gold Loan

SIB One Month Gold Loan Details
Tenure 1 month
Loan Amount
  • Rs. 1 lakh to Rs. 10 crores
  • 22 carats gold jewellery as security
  • Get a higher LTV/rate per gram
Repayment Total repayment at the end of tenure
Documentation and Processing Fee No charges
Interest Rate 1-month MCLR + 4.15%
Penal Interest If repaid after 1 month of taking the loan, penal interest is 3.50% over the contracted interest rate for the tenure

4. South Indian Bank Gold Loan – Business Segment

A) SIB Gold Power/NEO Schemes/Power Re-Pledge
Purpose To meet the genuine need of business/for on-lending/or for self-employed entities/persons
Customers Individuals/Hindu Undivided Family/Pvt.Ltd Company/LLPs/Public Ltd. Firm/Partnership Firm/Proprietorship Concern
Type of Loan Term Loan with bullet repayment/Overdraft
Loan Amount
  • Gold Power - Rs. 0.25 lakhs at least
  • NEO Scheme – Rs. 25 lakhs at least
  • Maximum Amount – Rs. 2500 lakhs
Collateral You have to pledge 22 carats of gold jewellery
Interest Rate
  • 1 Year MCLR + 3.90%
  • Repo Rate + 8.20%
Tenure
  • For Overdraft – 36 months at monthly interest. The limit is renewable at the end of 36 months after a review
  • For NEO Scheme – 3 months/6 months/12 months with repayment at the end of tenure
Features
  • If you have proof of self-employment you can borrow
  • Get maximum liquidity with overdraft scheme on secured gold jewellery
  • Re-pledge borrowers need to submit licenses and additional documents according to the norms
  • You can get the jewellery for use at any time as SIB can release the collateral and re-deposit the same without restrictions
  • Free safety and custody for gold pledged at the bank
Rate Per Gram/ LTV
  • For Overdraft – up to 75% of the gold’s current market value
  • For Term Loans under NEO – up to 72% of the gold’s current market
Processing Fee 0.10% per year on the approved loan amount
Penal Interest 2% per annum on the outstanding due
B) SIB Micro Gold Scheme

Repayment at the end of tenure
Purpose To meet a temporary business requirement of people involved in an income-generating activity under the Micro Segment
Loan Amount Rs. 25,000 to Rs. 10 lakhs
Collateral You have to pledge 22 carats of gold jewellery
Interest Rate 1 Year MCLR + 2.65% to 1 Year MCLR + 3.15%
Type of Loan Term Loan/Demand Loan
Tenure 6 months or up to 12 months
LTV/Rate Per Gram Up to 71% of the gold’s current market value
Minimum Chargeable Interest Rs. 50 or minimum for 5 days, whichever is higher
Safe Custody/Handling Charges No charges

South Indian Bank Gold Loan Interest Rates

The SIB Gold Loan interest rate charged is related to various factors. The South Indian Bank Gold Loan Interest Rate can change from time to time.And borrowers have to clarify with the bank about the existing bank rate.

SIB Gold Loan Scheme Interest Rates
Personal Gold Loan (End of the Tenure Repayment)
  • 1 Year MCLR + 3.65%
  • 6 Month MCLR + 4.15%
  • 3 Month MCLR + 4.60%
  • 1 Month MCLR + 4.15%
Agri Gold Loan 1 Year MCLR + 3.65%
Collateral
  • 6 Month MCLR + 1.85%
  • 1 Year MCLR + 1.65%
One Month Gold Loan 1-month MCLR + 4.15%
Gold Power/NEO Schemes/Power Re-Pledge
  • 1 Year MCLR + 3.90%
  • Repo Rate + 8.20%
Micro Gold Scheme 1 Year MCLR + 2.65% to 1 Year MCLR + 3.15%

Apply for Gold Loan

South Indian Bank Gold Loan FAQs

Below provided is important SIB Gold Loan FAQs.

  • SIB has an attractive offer on a gold loan
  • It charges a nominal rate of interest
  • The loan amount can be used for desirable purpose
  • Loan tenure is flexible and you can get the maximum amount as per the gold weight
  • The procedure for loan sanctioning is transparent
  • The bank has helped several customers fulfil their financial needs with a loan against gold

If you want to make a loan inquiry at SIB, then visit here for details:

It is possible to re-pledge the gold ornaments to avail of this loan. For this, the pawnee must furnish a declaration stating the actual ownership and a no objections certificate from the pawner pledging those ornaments further with the bank.

No handling charges are levied under this scheme. The rate of interest charged under this scheme is 11% per annum. Higher of Rs. 50 or minimum interest will be charged. The maximum period for this loan is 3 months.

The security requirements for this loan are 24-carat gold coins issued by the South Indian Bank packed originally along with Assay Certification. Applicants need to get them pledged with the bank against which the loan is sanctioned depending upon the value of gold coins.

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