India's complete gold loan resource — live interest rates across 9 lenders, instant LTV calculator, and expert bank guides.
📅 Last Updated: 7 August 2026 | ✍️ Reviewed by WealthMinty Research Desk
⚡Quick Answer
Gold loan interest rates in India range from 7.00% to 27% p.a. The lowest rate is Indian Overseas Bank's KCC Jewel Loan at 7.00% (effective ~4% with subvention), followed by Bank of Baroda (7.70% agri), PNB (8.50%), Federal Bank (8.49%), and SBI (8.70%). You can borrow up to 75% of your gold's value (RBI LTV cap), and the loan is disbursed in 15–30 minutes with just Aadhaar + PAN.
A gold loan is a secured loan where you pledge your gold jewellery (18K–22K) as collateral in exchange for funds. Because it is fully backed by physical gold, it attracts lower interest rates than unsecured personal loans, requires minimal paperwork (just Aadhaar + PAN), and is disbursed within 15–30 minutes. Under RBI guidelines, you can borrow up to 75% of your gold's market value (the Loan-to-Value or LTV cap).
The three main repayment schemes available in India are:
Bullet Repayment: Pay only interest periodically; repay the full principal at the end of tenure (3–12 months). Offered by SBI, Muthoot, Manappuram. See SBI Bullet schemes.
Monthly EMI: Pay fixed equated monthly instalments covering both principal and interest, like a regular loan (3–36 months). Best for predictable cashflow.
Overdraft (OD): Withdraw funds as needed up to a sanctioned limit; pay interest only on the amount used. SBI's "Liquid Gold" and HDFC offer this. Ideal for business owners.
No income proof or high CIBIL score is required for a gold loan — making it ideal for self-employed individuals, farmers, small business owners, and those with thin credit files. Use our embedded mini calculator above to see exactly how much you can borrow today.
🏦 Compare Gold Loan Lenders — Live
Sort by interest rate, filter by lender type, or search by name. 12 lenders listed.
↔ Scroll sideways to compare all columns
Lender
Interest Rate ↑
Max LTV
Processing Fee
Type
IOBIndian Overseas Bank
7.00% – 8.90%
75%
Nil (Agri/MSME); 0.20% retail
govt
BoBBank of Baroda
7.70% – 9.30%
75%
Nil up to ₹3L; 0.50% above
govt
FederalFederal Bank
8.49% – 12.00%
75%
0.39% (min ₹500)
private
PNBPunjab National Bank
8.50% – 9.00%
75%
0.30% (min ₹500)
govt
Indian BankIndian Bank
8.50% – 9.25%
75%
Nil / concessional (Agri); as per rate page
govt
ICICIICICI Bank
8.55% – 16.50%
75%
1.00% of loan amount
private
SBIState Bank of India (SBI)
8.70% – 9.95%
74%
0.50% (Min ₹500, Max ₹10,000)
govt
MuthootMuthoot Finance
9.00% – 24.00%
75%
0.50% to 1.00% of loan amount
nbfc
CanaraCanara Bank
9.25% – 10.20%
75%
0.15% – 0.30% (Min ₹125)
govt
ManappuramManappuram Finance
9.90% – 24.00%
75%
₹10 at security, plus audit charges
nbfc
IIFLIIFL Finance
11.88% – 27.00%
75%
Flat ₹500 processing fee
nbfc
HDFCHDFC Bank
11.91% – 19.00%
75%
Processing-fee offer on Term Loans; Nil foreclosure for MSE ≤ ₹50L
Jump directly to a provider's gold loan details. SBI, Canara Bank, and Punjab National Bank have full dedicated guides; other providers are listed in our banks directory and NBFC directory.
Higher purity = higher loan value. Lenders deduct the weight of stones, lacquer, and thread before computing value.
⚖️ Is a Gold Loan Better Than a Personal Loan or Credit Card?
Feature
Gold Loan
Personal Loan
Credit Card
Interest Rate
7.00% – 27%
10.5% – 24%
36% – 42%
Approval Speed
15–30 minutes
1–3 days
Instant (cash advance)
Collateral
Gold jewellery
None
None
Income Proof
Not required
Mandatory
Required at application
CIBIL Score
Not critical
700+ required
750+ required
Max Amount
Up to 75% of gold value
Based on salary
Preset limit
Tenure
3–36 months
12–60 months
Revolving
For short-term borrowing under ₹5 Lakhs against gold you already own, a gold loan is almost always the cheapest option. Compare EMI options or calculate your eligibility.
❓ Frequently Asked Questions about Gold Loans
Under RBI rules, you can borrow a maximum of 75% of your gold's market value (known as the Loan-to-Value or LTV ratio). For example, if your 22K gold jewellery is worth ₹1,00,000, you can borrow up to ₹75,000. Use our Gold Loan LTV Calculator to compute your exact eligibility instantly.
Gold loan interest rates in India start from just 7% p.a. (Indian Overseas Bank's KCC Jewel Loan, effective ~4% with subvention) and range up to 27% p.a. (NBFCs like IIFL). Public sector banks offer the lowest rates — Indian Overseas Bank (7.00–8.90%), Bank of Baroda (7.70–9.30%), PNB (8.50–9.00%), Federal Bank (8.49–12.00%) and SBI (8.70–9.95%) — while NBFCs like Muthoot and Manappuram charge higher but offer faster disbursal. Compare all lenders on our Interest Rates page.
The gold loan amount is calculated as: (Net gold weight × Today's gold rate per gram for the purity) × LTV ratio (max 75%). Stones, lacquer, and thread weight are deducted first. Try the calculation live with our embedded mini calculator above, or the full LTV calculator.
Indian Overseas Bank offers the lowest gold loan rate at 7.00% p.a. (KCC Jewel Loan, effective ~4% with subvention), followed by Bank of Baroda (7.70% agri), PNB (8.50%), and Federal Bank (8.49%). SBI starts at 8.70%. Among NBFCs, Muthoot Finance (9.00%) is the cheapest. Always compare both the interest rate AND processing fees — see the live comparison table above.
Most banks and NBFCs accept gold jewellery between 18 Karat (750 fineness) and 22 Karat (916 fineness). 24K gold coins and bars are also accepted by some lenders. Gold below 18K is generally not accepted. See the Gold Purity & LTV table above for how purity affects your loan value.
Gold loans require minimal documentation: Aadhaar Card, PAN Card (mandatory for loans above ₹50,000), one passport-size photograph, and a signed Demand Promissory Note (DP Note). Some lenders also require address proof. No income proof or salary slips are needed.
If you default on a gold loan, the lender first sends reminders and levies penal interest (typically 2-3% above the regular rate). After a grace period (usually 6-12 months), the lender can auction your pledged gold to recover the dues under the Sarfaesi Act. Always choose a repayment scheme you can afford — use our EMI calculator to check affordability first.
Bullet repayment means you pay only the interest periodically (monthly or quarterly) during the loan tenure, and repay the entire principal in one lump sum at the end. It is popular for short-term (3-12 month) gold loans and is offered by SBI, Muthoot, and Manappuram. Read the SBI Gold Loan guide for scheme details.
Yes, most lenders allow pre-closure (foreclosure) of gold loans. Public sector banks (SBI, Canara, PNB) typically charge NO prepayment penalty. NBFCs may charge 1-2% of the outstanding amount. Always confirm the pre-closure charges before signing the loan agreement.
Yes, for most borrowers. Gold loans offer lower interest rates (7.00-27% vs 10.5-24% for personal loans), faster disbursal (15-30 min vs 1-3 days), and no CIBIL or income-proof requirement. The downside is you must pledge your gold as collateral. Compare both options in the Gold Loan vs Personal Loan table above.
You can apply for an SBI gold loan by visiting any SBI branch with your gold jewellery, Aadhaar, PAN card, and a photograph. Existing SBI customers can also apply via the YONO app. SBI disburses the loan within 30 minutes. Read the full SBI Gold Loan guide for the 5 repayment schemes and YONO steps.
Yes. If gold prices drop significantly after you take the loan, the LTV ratio increases beyond 75%. Lenders may then request you to pay part of the principal or pledge additional gold to restore the margin (a "margin call"). Monitor prices on our Live Gold Rate page to stay ahead.
Our analysis shows that retail gold rate volatility in India requires careful, daily monitoring. Our editorial team manually researches and publishes indicative daily gold reference rates based on publicly available bullion market data, including published rates from recognized industry bodies such as the India Bullion and Jewellers Association (IBJA), commodity exchange signals (MCX), and international benchmarks (LBMA). The rates shown are indicative and for informational purposes only — they may differ slightly from your local jeweller's quote. Read our full Editorial Policy & Methodology.
Zero Merchant Bias: We are a pure financial information and analysis platform. We do not sell gold, jewelry, or run physical retail shops, guaranteeing completely unbiased reporting.
Standardized Mathematical Modeling: Our city-specific rate calculations use strict pricing premiums and transport offsets aligned with local state jewelry association norms.
Fact-Checked by Experts: Every pricing trend and forecast published on WealthMinty is verified by our editorial desk with over 10+ years of combined experience in bullion markets.