Gold has always been one of the most trusted assets in Indian households. In times of financial need, many people prefer to pledge their gold rather than sell it. One of the most popular and reliable options in India is the SBI Gold Loan. The State Bank of India (SBI), being the largest public sector bank, offers quick, secure, and affordable gold loan facilities.
In this detailed blog post, we will cover everything you need to know about getting a gold loan in SBI — eligibility, documents required, interest rates, application process, repayment options, and important tips. If you are searching for how to get a gold loan in SBI, this article is your ultimate guide.
What is a Gold Loan?
A gold loan is a type of secured loan where you pledge your gold ornaments or coins as collateral to borrow money from the bank. The loan amount is determined based on the value of your gold, and once you repay the loan, your gold is returned safely.
Gold loans are popular because:
- They are easy to get.
- Require minimal paperwork.
- Offer quick disbursal.
- Interest rates are usually lower than personal loans.
Why Choose SBI for a Gold Loan?
There are many banks and NBFCs that provide gold loans, but SBI stands out for several reasons:
- Trust & Security – SBI is India’s largest bank and has a reputation for safety.
- Lower Interest Rates – Compared to private lenders, SBI offers competitive gold loan rates.
- Flexible Repayment Options – You can choose EMI, bullet repayment, or overdraft facility.
- Wide Network – SBI has branches across India, even in rural areas.
- Quick Processing – The loan is usually approved within a few hours
Eligibility for SBI Gold Loan
Before applying, you need to check if you are eligible for an SBI Gold Loan.
✅ Who can apply?
- Any Indian citizen above 18 years of age.
- Salaried employees, self-employed professionals, farmers, business owners, and even homemakers.
✅ Gold requirement
- Only hallmarked gold jewelry or coins issued by banks are accepted.
- The purity of gold should be between 18 to 22 carats (sometimes 24 carat coins are allowed if issued by a bank).
✅ Loan amount
- SBI offers gold loans ranging from ₹20,000 to ₹50 lakh (depending on gold value).
Documents Required for SBI Gold Loan
One of the best things about gold loans is the minimal documentation. You only need basic KYC documents:
- Identity Proof (any one)
- Aadhaar Card
- Voter ID
- Driving License
- Passport
- Address Proof (any one)
- Aadhaar Card
- Utility Bill (Electricity, Gas, Water)
- Rent Agreement
- Passport
- Photographs – Passport size photographs.
- PAN Card – In some cases, for higher loan amounts.
SBI Gold Loan Interest Rates
Interest rates may vary depending on the scheme, loan amount, and repayment type. As of 2025, SBI gold loan interest rates are:
- 7.50% onwards per annum for regular borrowers.
- Rates may increase depending on tenure and risk profile.
Other charges:
- Processing fee: 0.25% to 1% of loan amount.
- Valuation charges: Minimal (done by bank’s authorized valuer).
Types of SBI Gold Loan Schemes
SBI offers multiple gold loan products to suit different customer needs:
- SBI Gold Loan (Regular) – For personal expenses, medical needs, or emergencies.
- SBI Gold Loan for Farmers – Special concessional rates for agricultural needs.
- SBI Bullet Repayment Gold Loan – Repay the entire loan at the end of tenure in one shot.
- SBI Gold Loan Overdraft – Use loan amount like a credit line, repay only on usage.
How to Apply for SBI Gold Loan (Step-by-Step Guide)
Getting a gold loan from SBI is simple. Here’s the step-by-step process:
Step 1: Visit Nearest SBI Branch
Carry your gold ornaments and required documents to the nearest SBI branch that offers gold loans.
Step 2: Gold Valuation
The bank’s authorized appraiser will check the purity and weight of your gold. Based on the market price of gold, the loan amount will be calculated.
Step 3: Submit Documents
Provide your KYC documents (ID proof, address proof, photos).
Step 4: Loan Approval
Once valuation and documents are verified, the bank approves your loan instantly.
Step 5: Disbursement of Loan
The loan amount is credited directly to your SBI bank account or given as a demand draft.
👉 Timeline: The entire process usually takes 1-2 hours only.
Online Application for SBI Gold Loan
While gold loan disbursal requires physical submission of gold, you can start the process online:
- Visit the official SBI website or download the YONO app.
- Select “Loans” → “Gold Loan”.
- Fill in basic details and book an appointment.
- Visit the branch with gold and documents for final processing.
Loan-to-Value (LTV) Ratio in SBI Gold Loan
RBI guidelines allow banks to lend up to 75% of gold value. For example:
- If your gold is valued at ₹2,00,000, SBI will offer a loan of up to ₹1,50,000.
This ensures safety for both the bank and customer.
Repayment Options in SBI Gold Loan
SBI offers flexible repayment options, so you can choose what suits you best:
- Regular EMI – Pay monthly installments.
- Bullet Repayment – Pay interest monthly and principal at the end.
- Overdraft Facility – Use loan amount as per need, pay interest only on usage.
Advantages of SBI Gold Loan
- Quick approval & disbursement.
- Lower interest rate compared to personal loans.
- No need for income proof or credit score.
- Flexible repayment methods.
- Safe storage of gold in bank’s vault.
Things to Keep in Mind Before Taking SBI Gold Loan
- Always compare SBI’s gold loan interest rate with other banks/NBFCs.
- Never default, otherwise bank has the right to auction your gold.
- Understand repayment terms before signing the agreement.
- Check processing charges and hidden fees.
- Keep track of gold loan tenure (usually 6 months to 3 years).
FAQs About SBI Gold Loan
Q1. How much gold loan can I get from SBI?
👉 You can get between ₹20,000 to ₹50 lakh depending on gold value and purity.
Q2. What is the minimum gold required for loan?
👉 Even 10 grams of gold jewelry can be pledged for a small loan.
Q3. Can I get gold loan without PAN card?
👉 Yes, for smaller amounts. But for higher amounts, PAN may be mandatory.
Q4. How long does it take to get a gold loan from SBI?
👉 Usually within 1-2 hours after valuation and document verification.
Q5. What happens if I don’t repay the loan?
👉 SBI will send reminders, but if you still default, the bank can auction your gold to recover dues.
Q6. Can I apply for an SBI gold loan online?
👉 Yes, you can start the process online, but final gold submission must be done at the branch.
Conclusion
An SBI gold loan is one of the safest, fastest, and most affordable ways to get financial help during emergencies. With minimal documentation, quick approval, and flexible repayment options, it’s an excellent choice compared to personal loans or borrowing from private moneylenders.
If you are in urgent need of funds and have gold jewelry lying at home, pledging it with SBI can be a smart move. Just remember to compare interest rates, repay on time, and keep your gold safe by choosing a trusted bank like SBI.