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Gold Loan Interest Rates - Compare Lowest Interest Rate

Gold loan interest rates in India start from 8.50% p.a. and vary based on the lender, gold purity, and loan amount. Banks and NBFCs offer gold loans ranging from Rs.1,500 to Rs.1.5 crore with repayment tenures between 3 months and 4 years, supported by loan-to-value ratios typically ranging from 70% to 85%.

Gold Loan Interest Rates in India – Lowest Gold Loan Rate

Interest Rate	8.55% p.a. onwards
Loan Amount	Up to Rs.1.5 crore
Loan Tenure	6 months onwards
Processing Fee	0% - 2% of the loan amount + GST

Note: The interest rates are effective from 04 August 2026.

Top Banks Offering Lowest Gold Loan Interest Rates

Name of the Bank	Interest Rate	Loan Amount
Axis Bank Gold Loan	9.75% p.a. to 17% p.a.	Rs.50,001 to Rs.40 lakh
HDFC Gold Loan	Starting from 9.10% p.a.	Contact the Lender
Canara Bank Gold Loan	8.80% p.a.	Contact the Lender
Muthoot Gold Loan	24.00% p.a. to 30.00% p.a.	Rs.1000 onwards
SBI Gold Loan	8.65% p.a. to 8.95% p.a.	Rs.20,000 to Rs.50 lakhs
Kotak Mahindra Gold Loan	10.56% p.a. onwards	Rs.20,000 to Rs.1.5 crore
IndusInd Bank Gold Loan	10.06% to 15.50% p.a.	Up to Rs.20 lakh
Manappuram Gold Loan	9.90% p.a. onwards	Contact the Bank
Bank of Maharashtra Gold Loan	8.50% p.a. onwards	Rs.20,000 to Rs.1 crore
PNB Gold Loan	8.50% p.a. onwards	Contact the Lender
Bank of Baroda Gold Loan	9.00% p.a. onwards	Up to Rs.50 lakh

Note: Interest rates updated on 04 August 2026.

Gold Loan Interest Rates Overview

Gold loan interest rates in India typically starts from @ 8.50% p.a. depending on the lender, the amount borrowed, and the value and purity of the pledged gold. Lenders generally offer a Loan-to-Value (LTV) of about 70–75%, allowing borrowers to take a loan against a large portion of their gold’s worth. The tenure for such loans usually ranges from 3 to 36 months. Additional costs can include processing fees, valuation charges, and foreclosure penalties. Borrowers should note that gold loan interest is not tax-deductible.

Tips to Get the Lowest Gold Loan Rate

Some of the main benefits of availing a gold loan are mentioned below:

Loans can be availed at low interest rates since collateral is being provided.
Apart from gold jewellery, no other security or collateral will need to be provided.
The funds can be used for various purposes unlike a car loan or home loan.
Minimal documents will need to be submitted.
Your credit history need not be good to avail the loan.

Also check Gold Loan Interest Calculator

Factors Affecting Gold Loan Interest Rates

Price of gold in the market - If the price of gold is high in the market, the value of the gold ornaments or coins being pledged by you will also be high. Lenders will offer you a lower interest rate in such cases since the risk associated is low and if ,for some reason, you are unable to make the equated monthly instalments (EMIs), the lender can easily recover the outstanding amount by selling/auctioning the gold ornaments.
Inflation - If the rate of inflation is high, the value of currency depreciates and hence, people tend to accumulate more gold. Gold acts as a hedge against inflationary conditions especially when they persist for a longer period. This, in turn, pushes the prices of gold higher and in such times if you wish to avail a gold loan, you may get lower interest rates from lenders.
Relationship with the bank - Most lenders offer gold loans to their existing customers, though, in some cases, individuals who have no history with the bank can also avail gold loans. However, existing customers of banks/lending institutions are typically in a better position to negotiate for a lower interest rate.

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FAQs on Gold Loan Interest Rates

1.What is a gold loan?

A gold loan is a secured loan where you pledge your gold jewellery or coins as collateral to a bank or lender in exchange for cash.

2.What is the current interest rate range for gold loans in India?

Gold loan interest rates in India currently range from 8.50% p.a. to 30% p.a., depending on the lender and the type of gold loan you choose.

3.Which bank offers the lowest gold loan interest rate?

Bank of Maharashtra and PNB offer among the lowest gold loan interest rates, starting from 8.50% p.a., though the exact rate depends on your loan profile and the gold's purity.

4.How do I repay a gold loan?

You can repay your gold loan either by cash, funds transfer, demand draft (DD), or cheque at your lender's branch.

5.What are the eligibility criteria to avail a gold loan?

Indian citizens aged 21 to 60 years—including farmers, business owners, salaried employees, self-employed individuals, housewives, and pensioners—can apply for a gold loan if they can pledge gold jewellery or coins.

6.Does the interest rate on a gold loan vary with the type of gold ornaments pledged?

Yes, the interest rate on a gold loan varies depending on the kind and purity of the gold ornaments you pledge; gold must be 18 karat or higher, and if studded with precious stones, their weight will be excluded.

7.Does my credit score affect the interest rate on a gold loan?

No, lenders do not take into account your credit score when you apply for a gold loan; if you are above 18 years and have documents to prove your gold ownership, you can apply.

8.Can a farmer get a discount on gold loan interest rates?

Yes, farmers can get a rebate of 1% to 2% on gold loan interest rates since agriculture is a priority sector, potentially allowing rates as low as 8%.

9.Is there an option to make a part-payment of a gold loan?

Most lenders offer part-prepayment facilities on gold loans but may charge a penalty; some lenders will release a portion of your gold ornaments upon part-prepayment.

News about Gold Loan Interest Rates

RBI Revises Guidelines for Gold Loan Expenses in Banks and NBFCs

Gold loan regulations have been updated by the governor of the RBI. The final guidelines for gold loans will be released shortly. Importantly, a statement of ownership will now satisfy loans up to Rs.2.5 lakh. For this, no credit check will be required. At 85%, the loan-to-value (LTV) ratio has been set. In the past, tiny banks and certain NBFCs offered loans for up to 88% of the value. If you pledge Rs.100 worth of gold, you will receive Rs.85 in loan proceeds if the LTV is 85%. Accordingly, if someone wants to borrow Rs.2.5 lakh, they will need to pledge around Rs.2.94 lakh worth of gold. These new regulations will make it easier and safer for small borrowers to take out gold loans.

8 September 2025

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