Gold Loan Hub
Gold Loan from Banks in India
Compare interest rates, LTV limits, and schemes from India's top public and private sector banks — RBI regulated with maximum 75% LTV
📉
7.00%
Lowest Rate
IOB KCC (~4% w/subvention)
⚖️
82%
Max LTV
Indian Bank (small bullet)
💰
₹1.5 Cr
Max Loan
Federal Bank
🏦
8
Banks Covered
Public + Private
Quick Answer
The lowest gold loan rate from an Indian bank is Indian Overseas Bank at 7.00% p.a. (KCC Jewel Loan, effective ~4% with subvention). Among major banks, Bank of Baroda starts at 7.70% (agri), PNB at 8.50%, Federal Bank at 8.49%, and SBI at 8.70%. All bank gold loans are capped at 75% LTV (RBI limit) and need only Aadhaar + PAN — no income proof or CIBIL score.
🏛️ Public Sector Banks
🏛️
State Bank of India
Public Sector BankInterest Rate
8.70% – 9.95%
Max LTV
74%
Max Loan
₹50 Lakh
Tenure
3 – 36 months
AVAILABLE SCHEMES
3M Bullet6M Bullet12M BulletEMIOverdraft
KEY HIGHLIGHTS
- ✓ Lowest bullet rate at 8.70%
- ✓ YONO app instant approval
- ✓ No foreclosure charges
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Canara Bank
Public Sector BankInterest Rate
RLLR + 0.95% (≈ 9.25% – 10.20% p.a.)
Max LTV
75%
Max Loan
₹50 Lakh
Tenure
6 – 12 months
AVAILABLE SCHEMES
Swarna LoanSwarna ExpressSwarna OverdraftSwarna Monthly Interest
KEY HIGHLIGHTS
- ✓ 4 Swarna schemes incl. overdraft & monthly interest
- ✓ Lowest processing fee from just ₹125 (Swarna Express)
- ✓ No prepayment penalty + agri gold loans
🏛️
Punjab National Bank
Public Sector BankInterest Rate
RLLR + 0.85% (≈ 8.50% – 9.00% p.a.)
Max LTV
75%
Max Loan
₹25 Lakh
Tenure
1 – 36 months
AVAILABLE SCHEMES
Retail Gold LoanPNB Swarnim (Agri)BulletEMIOverdraft
KEY HIGHLIGHTS
- ✓ RLLR-linked transparent rate from 8.95% p.a.
- ✓ Digital disbursal via PNB ONE app
- ✓ Cheaper agri scheme (PNB Swarnim) from 8.50% p.a.
🏛️
Indian Overseas Bank
Public Sector BankInterest Rate
7.00% – 8.90%
Max LTV
75%
Max Loan
₹50 Lakh
Tenure
Bullet 12m · EMI 60m
AVAILABLE SCHEMES
KCC Jewel Loan (7%)JLSTF (7.75%)Swarna Lakshmi (Women)SME GoldGold Loan CardAgri Easy
KEY HIGHLIGHTS
- ✓ KCC Jewel Loan at 7% (effective ~4% with subvention)
- ✓ Lowest retail rate JLSTF at 7.75% p.a.
- ✓ IOB Gold Loan Card — ATM/POS/E-com overdraft
🏛️
Bank of Baroda
Public Sector BankInterest Rate
7.70% – 9.30%
Max LTV
75%
Max Loan
₹25 Lakh
Tenure
12 – 36 months
AVAILABLE SCHEMES
Retail Gold LoanAgri Gold (from 7.70%)EMIOverdraft
KEY HIGHLIGHTS
- ✓ BRLLR-linked: 9.20% p.a. (Demand Loan & EMI)
- ✓ Women concession up to 0.40% lower rate
- ✓ Agri Gold Loan from just 7.70% p.a.
🏛️
Indian Bank
Public Sector BankInterest Rate
8.50% – 9.25%
Max LTV
Tiered 67% – 82%
Max Loan
₹50 Lakh (Agri)
Tenure
Bullet 12m · EMI 35m
AVAILABLE SCHEMES
Jewel LoanBulletEMIOverdraftOD Against Gold JewelsAgri Jewel Loan
KEY HIGHLIGHTS
- ✓ Tiered LTV up to 82% for small 3-month bullet loans
- ✓ OD Against Gold Jewels with RuPay Card & cheque book
- ✓ Agri Jewel Loan up to ₹50 Lakh per customer
🏦 Private Sector Banks
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Federal Bank
Private Sector BankInterest Rate
8.49% – 12.00%
Max LTV
75% (90% Agri)
Max Loan
₹1.5 Crore
Tenure
6 – 12 months
AVAILABLE SCHEMES
General Gold LoanAgri Gold (90% LTV)Digi Gold ODMSME Gold
KEY HIGHLIGHTS
- ✓ Highest max loan (₹1.5 Crore)
- ✓ Up to 90% LTV for agri gold loan
- ✓ Online gold loan via FedMobile
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HDFC Bank
Private Sector BankInterest Rate
11.91% – 19.00% p.a.
Max LTV
75%
Max Loan
Up to ₹50 Lakh
Tenure
6 – 42 months
AVAILABLE SCHEMES
Term Loan (EMI)Gold Loan ODBullet Repayment
KEY HIGHLIGHTS
- ✓ Starting from 11.91%* p.a. (profile-based)
- ✓ Funds over the counter in ~45 minutes
- ✓ NIL foreclosure for MSE loans ≤ ₹50 Lakh
🔍 Should You Choose a Bank or an NBFC for Your Gold Loan?
| Factor | Banks | NBFCs |
|---|---|---|
| Interest Rate | 7.00% – 16.50% | 9.00% – 26.00% |
| Processing Time | 30 – 60 minutes | 15 – 30 minutes |
| Max LTV | 75% (RBI regulated) | 75% (RBI regulated) |
| Branch Network | Wide (10,000+ branches) | Very Wide (25,000+) |
| Doorstep Service | Limited | Widely Available |
| Gold Insurance | Mandatory (Bank Locker) | Varies by NBFC |
| Documentation | KYC + Photos | KYC only (some) |
| Regulation | RBI (Schedule II) | RBI (NBFC-D) |
| Foreclosure Penalty | Usually Nil | 0% – 3% |
| Best For | Lower cost, longer tenure | Speed, convenience |
💡 How to Choose the Best Bank for Gold Loan
- Compare interest rates: Public sector banks like Canara Bank (RLLR + 0.95%, ≈ 10.20%) and SBI (8.70%) offer transparent RBI-regulated rates. Always compare the effective rate, not just the headline rate.
- Check LTV offered: Higher LTV means more loan for the same gold. Most banks offer 65-75% LTV depending on the scheme. SBI Overdraft offers 74% LTV.
- Evaluate repayment flexibility: Bullet repayment (lump sum at end) suits short-term needs; EMI suits salaried borrowers; Overdraft suits business owners who need a revolving credit line.
- Consider processing fees: Some banks charge as low as ₹200 flat (SBI 3M Bullet), while others charge up to 1.50% of the loan amount.
- Check foreclosure charges: Most public sector banks (SBI, PNB, Canara) do not charge foreclosure penalties. This saves money if you close the loan early.
📋 What Are the RBI Guidelines for Bank Gold Loans in 2026?
- Maximum LTV: 75%— Banks cannot lend more than 75% of the gold's market value (based on domestic price of 22K gold).
- Gold purity: 18K – 22K — Only gold ornaments (jewellery) with purity between 18 Karat and 22 Karat are accepted. 24K bars/biscuits are generally not accepted.
- Gold coins: Up to 50g — Specially minted gold coins sold by banks, weighing up to 50 grams per customer, are accepted.
- Auction rules: If the borrower defaults, banks must issue a 15-day notice before auctioning the pledged gold. The auction must be conducted in a transparent manner.
- Insurance: Banks are required to insure the pledged gold against theft, fire, and natural calamities during the loan tenure.
❓ Frequently Asked Questions about Bank Gold Loans
As of 2026, Punjab National Bank (PNB) offers one of the lowest gold loan interest rates among major public-sector banks — its PNB Swarnim agricultural scheme starts at RLLR + 0.40% (≈ 8.50% p.a.), while the retail scheme is RLLR + 0.85% (≈ 8.95% p.a.). State Bank of India (SBI) starts at 8.70% p.a. for its 3 Months Bullet Repayment scheme, and Canara Bank's Swarna schemes are at RLLR + 0.95% (≈ 10.20% p.a.). For the absolute lowest rate, Indian Overseas Bank's KCC Jewel Loan starts at 7.00% p.a.
As per RBI guidelines (revised September 2024), the maximum Loan-to-Value (LTV) ratio for gold loans from banks is 75% of the gold's market value. This means if your gold is worth ₹1,00,000, the maximum loan you can get is ₹75,000. Some banks like SBI offer schemes with lower LTV (65-74%) at correspondingly lower interest rates. Calculate your exact eligibility with our LTV calculator.
Bank gold loans are generally better for lower interest rates (7.00-10% vs 9-24% for NBFCs), higher security (insured storage), and regulatory protection. However, NBFCs like Muthoot and Manappuram offer advantages like faster processing (15 minutes vs 30-60 minutes for banks), doorstep service, and more flexible documentation requirements. Choose banks for lower cost, NBFCs for speed and convenience. Compare both on our NBFC page.
Most banks do NOT accept raw 24K gold bars, bricks, or biscuits for gold loans. Banks only accept gold jewellery (ornaments) with purity between 18K and 22K, and specially minted gold coins sold by banks (up to 50 grams per customer). 24K gold bars are typically not accepted because they cannot be easily assessed for authenticity without specialized equipment.
For a bank gold loan, you typically need: (1) KYC documents — Aadhaar card, PAN card, or Voter ID; (2) Passport-size photographs; (3) Address proof if different from Aadhaar; (4) The gold ornaments to be pledged. No income proof, salary slips, or credit score (CIBIL) is required since it is a fully secured loan.
🏛️ Prefer an NBFC instead of a bank?
NBFCs like Muthoot Finance and Manappuram Finance charge slightly higher rates but offer faster disbursal, doorstep service in select cities, and longer tenure flexibility. They are popular for emergency funds where speed matters more than the lowest rate.
Compare NBFC Gold Loans →