Now i will know you Gold Loan Interest Rate in Bangladesh. Also here you get all Bangladeshi Bank compare. so lets know about Gold Loan Interest Rate.
Gold loans are secured loans where gold jewelry is used as collateral. You pledge your gold jewelery to your lender and get a loan. The loan amount is usually a percentage of the value of the gold. You can repay the loan in monthly installments.
After payment, you will get your gold jewelry back. State-owned banks, private banks, and other financial institutions offer these loans at affordable interest rates. Generally, borrowers use this loan to meet sudden financial needs like marriage or child’s education. Instead of selling gold, many individuals opt for a loan option.
You take your gold jewelry to a lender and ask for a loan by pledging it. The lender evaluates the gold and approves the loan after verifying the documents. Some gold loan lenders even appraise your gold jewelry at home. The process is quick and usually takes a day.
For a gold loan, you need to submit identity proof like driving license, PAN, passport or Aadhaar card. If you don’t have PAN, you may be asked to submit Form 60. As proof of address, you need to submit an electric bill, ration card or telephone bill. You will also need to submit a signature proof like passport copy, driving license or any other document.
Along with these, you also need to provide a passport size photograph. Some lenders may also ask for proof of your income.
Gold Loan Interest Rate in Bangladesh
In times of financial need, gold loans have become a trusted and convenient solution for many individuals in Bangladesh. With minimal documentation, quick approval, and the security of pledged gold ornaments, these loans offer a hassle-free way to access cash without selling off your precious assets. One of the most important factors to consider when taking a gold loan is the interest rate, which directly impacts your repayment amount.
In this blog post, we’ll explore the current gold loan interest rates in Bangladesh, how they compare with other loan types, what factors influence the rates, and how you can secure the best possible deal. Whether you’re planning to fund a medical emergency, cover educational expenses, or support a business, understanding gold loan interest rates will help you make smarter financial decisions.
Gold Loan Rates (Jan–Mar 2025 averages)
- Minimum: 8.80% per annum
- Maximum: 19.60% per annum
- Mean: 13.79% per annum
This indicates typical gold loan interest in Bangladesh hovers around 13.8%, but individual bank offerings can vary significantly depending on the borrower’s profile, loan tenure, and bank policies.
General Lending Rates – Context for Comparison
Bangladeshi banks currently charge between 15%–16% for private-sector loans, placing gold loans slightly below usual loans in terms of interest. The central bank’s policy rate is around 10%, with commercial banks’ scheduled lending rates averaging 12–15% .
What This Means for You
- Benchmark: Use the ~13.8% mean rate as a reference when comparing offers.
- Shop Around: Some banks may offer gold loans lower than 10%, while others charge up to nearly 20%.
- Loan-to-Value & Tenure: Higher LTV ratios or longer repayment terms might lead to higher interest.
- Bank-Specific Deals: Banks like Bandhan Bank publish their own rate band – use these publicly available ranges for negotiation leverage.
Tips When Looking for Gold Loan Offers
- Compare multiple banks—look for lower rates and reasonable processing fees.
- Understand eligibility criteria—purity of gold, margin requirements, and loan tenure affect the rate.
- Watch for hidden fees—appraisal charges, insurance, or renewal fees can add to cost.
- Negotiate—knowing the average (13.8%) gives you leverage to seek better deals.
Quick Summary Table
| Feature | Value |
|---|---|
| Avg. Gold Loan Rate | ≈ 13.79% p.a. |
| Min–Max Range (Bandhan) | 8.8 % – 19.6 % p.a. |
| Bank Lending Rate Range | ≈ 15 – 16 % p.a. |
| Central Bank Policy Rate | ≈ 10 % p.a. |
Next Steps
- Reach out to major banks (e.g., Bandhan, Brac, Mutual Trust) for current gold loan rate offerings.
- Ask for a written quote detailing interest, tenure, LTV, and all associated fees.
- Carefully compare total repayment costs—not just interest rates—to find the best value.
More About Gold Loan Interest Rate
Since gold loans are secured loans, the interest rates are slightly lower than unsecured loans like personal loans. Non-banking financial companies (NBFCs) may charge higher interest rates than banks. Hence, it is advisable to compare various interest rates before taking a gold loan. This is a personal loan, with an interest rate of 12.75% or higher, although it varies between different lenders.
When you apply for a loan, the lender may charge a processing fee of up to 1% of the loan amount. You may also be charged for documentation. Fees may also apply for gold valuation. Lenders may charge a renewal fee based on the loan amount, and stamp duty as per state laws. You may have to pay late fees for late payments.
Depending on whether you decide to repay the loan, your lender may charge you service tax (or GST) and prepayment/early closing fees. The actual amount of the charge may vary from one lender to another. So, don’t forget to compare them as well. Anyone who owns gold jewelery can avail a gold loan. He may be a salaried person or a homemaker and farmer.
Gold loan tenure is usually short and it is usually between 3-12 months. However, some lenders offer relatively longer terms. Other lenders allow you to renew and extend your loan. Since the tenure is short, you must be sure that you can repay the loan on time. If you fail to repay the loan within the term, you may lose the mortgaged gold or the lender may sell it at auction to recover the loan amount.
Lenders assess the purity of gold and its weight before confirming the loan amount. Based on the purity and weight of the gold, the gold appraiser determines the market price. Lenders offer loans up to 75% of market value. This is called ‘loan to value ratio/LTV’.
The method of storing gold jewelry may differ from lender to lender, but proper measures are taken to properly store gold jewelry. After the loan is sanctioned and disbursed, the gold is kept under strict security.
Lenders use electronic vaults with motion detectors and CCTV for security. Some lenders even insure your mortgaged gold. This protects the gold from being stolen. In case of a robbery, you will get a refund equal to the market value of the gold.
Depending on your lender, you may have flexible repayment options. Most lenders offer you the option of paying only the interest portion every month. In such cases, the principal loan amount is repaid at the end of the loan tenure. You can also choose to pay EMIs to repay the loan.
Some Frequently Asked Questions (FAQ)
- Loan against Gold is a secured overdraft (SOD) facility by pledging Gold Jewelries/ornaments
- Any female customer ages between 18 to 65 years and owns.
- Gold jewelries/ornaments of purity 18 Carat & above.
- Loan can be offered against Gold Jewelries/ornaments owned by immediate family members subject to submission of ownership & relationship proof documents.
- Loan against Gold bar, Gold coin, bullion/primary Gold Gold-plated metals and other ornaments made of diamond, silver, cadmium etc. will not be accepted.
- Maximum 50% of the market value of pure Gold.
- Minimum limit is BDT 1,00,000 and maximum limit is BDT 5,00,000 or up to 50% of LTGV (whichever is lower).
- Portion of pure Gold is determined by excluding weight of stones, gems, khad and other metals from the gross weight.
Conclusion
Gold loans in Bangladesh offer a quick and reliable way to meet urgent financial needs without liquidating your assets. However, the interest rate is a key factor that directly affects the overall cost of the loan. As we’ve seen, gold loan interest rates in Bangladesh can vary from one bank to another, ranging from competitive rates as low as 8.8% to higher brackets nearing 19%.
Before choosing a lender, it’s essential to compare rates, understand the loan-to-value ratio, and consider additional fees or hidden charges. By doing your research and asking the right questions, you can secure a gold loan that’s not only convenient but also financially sound.
Whether you’re planning for a medical emergency, business investment, or educational expense, a gold loan can be a practical solution—just be sure to choose the right rate and repayment plan to make it work in your favor.
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