How much loan amount can I get per gram of gold today?

The maximum loan amount per gram you can get is directly determined by the daily gold price and the loan-to-value (LTV) ratio. Based on today's base market rate of ₹13,740 per gram for 22K gold, and the maximum RBI-authorized LTV of 75%, you can borrow up to approximately ₹10,305 per gram. For 18K gold (valued today at ₹11,242/g), the maximum eligible loan is ₹8,432/g. To estimate the value of your jewelry based on purity and weight, use our Gold Jewellery Calculator , or check your borrowing eligibility using the Gold Loan LTV Calculator .

What is the maximum Loan-to-Value (LTV) allowed by RBI for gold loans?

The Reserve Bank of India (RBI) caps the Loan-to-Value (LTV) ratio for all commercial banks and NBFCs at 75% of the appraised value of the pledged gold. This means you must maintain a minimum safety margin of 25%. For example, if your ornaments are valued at ₹1,0,0,000 based on today's live gold rate , you can receive a maximum loan of ₹75,000. Lenders like SBI might require a slightly higher margin (LTV ranging from 65% to 74%) depending on the repayment scheme to lower your interest rate. Check out how LTV affects your payments using our Gold Loan LTV Calculator .

How does the bullet repayment scheme work for gold loans?

In a bullet repayment scheme, you do not pay any monthly EMIs. Instead, you repay the entire principal amount and the accrued interest in a single lump sum (the 'bullet' payment) at the end of the loan tenure (usually 3, 6, or 12 months). This is highly suitable for agriculturalists and businessmen who expect lump-sum cash inflows.

Can I get a gold loan with a low credit score or no income proof?

Yes, you can easily get a gold loan even if you have a low CIBIL score or lack formal income proofs (like salary slips or tax returns). Because gold loans are fully secured by physical gold ornaments, the lender's risk is minimal. Lenders are primarily concerned with the purity and weight of your gold, not your credit history.

Gold loan vs Personal loan: Which is a better choice?

A gold loan is almost always a better choice than a personal loan because it is secured and therefore cheaper. Gold loan rates start from 7.00% p.a. compared to unsecured personal loans which start from 10.50% and go up to 21% or more. Additionally, gold loans do not charge foreclosure or prepayment fees in most banks, whereas personal loans charge hefty prepayment fees. For a detailed analysis, read our dedicated article on Gold Loan vs Personal Loan: Which is Better? .

What happens if I fail to repay my gold loan on time?

If you fail to repay your gold loan dues by the maturity date, the bank or NBFC will first charge a penal interest (usually 1% to 2% extra) and send periodic reminders. If you continue to default after multiple notices (usually 90 days after maturity), the lender has the legal right to retrieve the dues by auctioning your pledged gold ornaments. Any surplus amount generated from the auction after settling the principal, interest, and auction charges will be returned to you.

If gold prices rise after taking a gold loan, will I get an additional loan?

Yes, you can get additional funds by opting for a Gold Loan Top-Up or renewal. If market gold rates rise significantly, the equity in your pledged gold increases. Lenders like Muthoot Finance and various banks allow you to top up the existing loan up to the new 75% LTV limit, providing you with additional liquidity without needing extra gold.

If gold prices fall, can the lender ask me to repay early?

Yes, if gold prices drop drastically, the LTV ratio may exceed the RBI-mandated 75% limit. In such cases, the lender will ask you to either pay a part of the principal to reduce the outstanding loan amount or pledge additional gold to bring the LTV back within the 75% limit. Failure to do so could result in the lender selling your gold prematurely.

Which is better: Bank gold loan or NBFC gold loan?

It depends on your priority. Banks (like SBI, Canara Bank) offer the lowest interest rates (8% - 10%) but may have a longer processing time and stricter valuation guidelines. NBFCs (like Muthoot, Manappuram) charge higher interest rates (10% - 16%+) but offer instant 10-minute disbursement, minimal documentation, and more flexible repayment options.

Can I pay only the interest and take back my gold later?

Yes. Many lenders offer interest-only repayment schemes where you pay the interest amount monthly, quarterly, or half-yearly, and the entire principal is repaid at the end of the loan tenure. Once the principal is fully cleared, the lender will return your pledged ornaments in the same condition they were received.

After how many missed payments can a lender auction my gold?

Generally, lenders wait for 90 days after the loan maturity date before initiating an auction process. Before the auction, the lender is legally required to send you multiple demand notices and a final auction notice (usually 14 days prior to the auction) in local newspapers. You can retrieve your gold anytime before the final auction bid by clearing all outstanding dues and penal fees.

Can I close my gold loan early without penalty?

Most banks and NBFCs do not charge any prepayment or foreclosure penalties on gold loans. You can repay the loan fully at any point during the tenure and retrieve your ornaments. However, some lenders may have a minimum interest period (e.g., 3 months) or charge a nominal processing closure fee. Always check the terms beforehand.

Can I transfer my gold loan from Muthoot to SBI?

Yes, you can transfer your gold loan to another lender through a process called Gold Loan Takeover. If you are paying a high interest rate at Muthoot, you can apply for a takeover at SBI or another bank. The new bank will pay off your outstanding balance at Muthoot, release the gold, re-evaluate it, and issue a new loan at a lower interest rate.

Does CIBIL score affect gold loan interest rates?

For most lenders, your CIBIL score does not affect your eligibility or interest rate since the loan is backed by physical gold. However, some public sector banks (like SBI) offer special discounts or lower interest rates to borrowers who have a good credit score (typically 750 or above).

How much gold is required for a ₹1 lakh loan today?

Based on today's 22K gold rate of ₹13,740/g and the maximum 75% LTV, you would need to pledge approximately 9.70 grams of 22K gold ornaments to secure a ₹1,0,000 loan. If using 24K gold coins (valued today at ₹14,994/g), you would need about 8.89 grams.

Which bank offers the lowest gold loan interest rate today?

Currently, Indian Overseas Bank offers the lowest interest rate starting from 7.00% p.a. (KCC Jewel Loan, effective ~4% with subvention), closely followed by Bank of Baroda at 7.70% p.a. (agri) and Punjab National Bank (PNB) at 8.50% p.a. Rates are subject to changes based on RBI repo rate revisions.

Is GST applicable on gold loan interest?

No, GST (Goods and Services Tax) is not applicable on the interest paid for gold loans. However, GST is applicable on the ancillary services provided by the bank, such as processing fees, valuation charges, and documentation fees (typically taxed at 18%).

What types of gold are accepted for gold loans?

Lenders accept gold jewellery, ornaments, and specially minted gold coins. The gold must have a purity level between 18 karats and 22 karats (some banks accept up to 24K for coins). Lenders do not accept gold bars, raw gold nuggets, or gold-plated jewellery.

Are gold coins accepted for gold loans?

Yes, gold coins are accepted by banks and NBFCs, provided they are of 99.99% (24K) purity and issued by banks. However, the RBI has capped the maximum weight of gold coins that can be pledged per customer at 50 grams.

Can I take multiple gold loans using different jewellery?

Yes, you can take multiple gold loans simultaneously. You can pledge different sets of ornaments at the same bank or with different lenders. Each loan will be treated as an independent account with its own repayment schedule, interest rate, and tenure.

Can I renew my gold loan instead of repaying it?

Yes, most lenders offer a renewal facility at the end of the loan tenure. To renew, you must pay all the accumulated interest and get the gold re-valued according to the current market rate. If gold prices have risen, you may even get additional cash; if prices have fallen, you may need to pay a small portion of the principal.

Is agricultural gold loan cheaper than regular gold loan?

Yes, agricultural gold loans (Agri Gold Loans) are subsidized by the government and are generally cheaper, starting from 7% p.a. However, to qualify, you must be a farmer and provide proof of agricultural land ownership or cultivation activity.

How is gold purity checked by lenders?

Lenders hire in-house certified gold appraisers who check the purity and weight of your gold using methods like touchstone tests, acid tests, or electronic ultrasonic/X-ray fluorescence (XRF) gold testing machines. The weight of stones, gems, or wax in the jewelry is deducted, and only the net weight of precious metal is considered.

How much gold could my grandmother get on her old jewellery today?

Old gold jewelry holds the exact same value as new gold in a gold loan. Lenders assess the purity of the gold (usually 22K) and the weight of the metal itself. Based on today's 22K gold rate of ₹13,740/g, she can get a maximum loan of ₹10,305 per gram of net gold weight. Keep in mind that any stones or pearls will be subtracted from the weight.

Should I take a gold loan now or wait for gold prices to increase?

If you need immediate funds, taking a gold loan now is wise as gold prices are historically high, allowing you to get a larger loan amount for less weight. Waiting for prices to increase might give a slightly higher loan limit, but if prices drop, your loan eligibility per gram will also decrease.

Is it safe to pledge family jewellery for a gold loan?

Yes, it is highly safe to pledge your gold with scheduled commercial banks (like SBI, HDFC) and reputed RBI-regulated NBFCs (like Muthoot, Manappuram). They store your gold in secure, fireproof, and insured vaults with 24/7 CCTV surveillance. It is much safer than keeping them at home. Avoid unorganized local pawn shops or moneylenders, as they lack regulation and insurance.

What is the biggest mistake people make while taking a gold loan?

The biggest mistake is not checking the repayment structure. Borrowers often choose high LTV options without realizing they come with higher interest rates. Another mistake is choosing a bullet repayment scheme when they do not have a guaranteed source of income to clear the entire lump sum at maturity, which leads to high penal interest rates or auctioning.

Which lender gives the highest loan amount per gram today?

Virtually all lenders offer up to the maximum 75% LTV limit. However, specialized gold loan NBFCs like Muthoot Finance and Manappuram Finance tend to evaluate gold generously and offer maximum valuation schemes per gram compared to public sector banks which apply conservative valuation methods.

🏦 Gold Loan Rates 2026

Gold Loan Interest Rates Today in India (2026)

Q: What is the current gold loan interest rate in India today?

Gold loan interest rates in India currently range from 7.00% to 27.00% per annum. Public sector banks offer the lowest interest rates — Indian Overseas Bank from 7.00% p.a. (KCC Jewel Loan, effective ~4% with subvention), Bank of Baroda from 7.70% p.a. (agri), Punjab National Bank (PNB) from 8.50% p.a., and State Bank of India (SBI) from 8.70% p.a. You can check detailed repayment options, margins, and calculators on our dedicated SBI Gold Loan Interest Rate page, or compare other banks and NBFCs (like Muthoot and Manappuram) in the table above to find the most economical scheme.

Compare interest rates, loan-to-value (LTV), and processing fees from India's leading banks and NBFCs. Get the maximum loan value based on today's live gold price.

📅 Updated: August 2026⏱️ Read Time: 12 min read✍️ By: WealthMinty Research Desk📊 Methodology: LTV & Interest Rate Comparison🔗 Data Source: Bank Rate Cards & RBI Disclosures

Lowest Interest Rate🏆
7.00% p.a.
Current lowest rate in market (Indian Overseas Bank)

Max Loan Value (LTV)💰
Up to 75%
Regulatory ceiling set by RBI

Processing Fees🏷️
From 0.50%
Flat ₹500 fee options available

Repayment Tenure📅
36 Months
Flexible term & renewal options

⚠️ Important Disclaimer: Gold loan interest rates, LTV ratios, and processing fees are subject to change by respective banks and financial institutions based on market volatility and internal policies. The information provided is for educational and comparative purposes only and should not be considered financial advice. Please verify exact terms with the lender before signing any agreement.

Quick Answer

Today's gold loan interest rates in India range from 7.00% to 27.00% p.a. The cheapest is Indian Overseas Bank (7.00% KCC Jewel Loan, effective ~4% with subvention), followed by Bank of Baroda (7.70% agri), PNB (8.50%), Federal Bank (8.49%), and SBI (8.70%). NBFCs like Muthoot (9.00%) and Manappuram (9.90%) charge more but disburse faster. The RBI LTV cap is 75%of your gold's value.

📖What's On This Page

• Lender Interest Comparison
• Today's Loan Per Gram Value
• Dynamic Loan & EMI Calculator
• Local Provider City Selector
• Interest Rate FAQ Desk

Lowest Gold Loan Interest Rates Offered by Banks and NBFCs

Filter and sort by lender names or interest rates to compare top banks and NBFCs in India.

🔍

Lender	Min Interest Rate	Max LTV	Processing Fee	Tenure
IOB Indian Overseas Bank View IOBSchemes & Calculator →	7.00% p.a. onwards	75% RBI Max: 75%	Nil (Agri/MSME); 0.20% retail	Bullet up to 12m · EMI up to 60m
BoB Bank of Baroda View BoBSchemes & Calculator →	7.70% p.a. onwards	75% RBI Max: 75%	Nil up to ₹3L; 0.50% above	12 – 36 months (Agri up to 12m)
Federal Federal Bank View FederalSchemes & Calculator →	8.49% p.a. onwards	75% RBI Max: 75%	0.39% (min ₹500)	6 – 12 months
PNB Punjab National Bank View PNBSchemes & Calculator →	8.50% p.a. onwards	75% RBI Max: 75%	0.30% (min ₹500)	1 – 36 months
Indian Bank Indian Bank View Indian BankSchemes & Calculator →	8.50% p.a. onwards	75% RBI Max: 75%	Nil / concessional (Agri); as per rate page	Bullet up to 12m · EMI up to 35m
ICICI ICICI Bank	8.55% p.a. onwards	75% RBI Max: 75%	1.00% of loan amount	6 to 12 months
SBI State Bank of India (SBI) View SBISchemes & Calculator →	8.70% p.a. onwards	74% RBI Max: 75%	0.50% (Min ₹500, Max ₹10,000)	3 to 36 months
Muthoot Muthoot Finance View MuthootSchemes & Calculator →	9.00% p.a. onwards	75% RBI Max: 75%	0.50% to 1.00% of loan amount	Up to 12 months (Renewable)
Canara Canara Bank View CanaraSchemes & Calculator →	9.25% p.a. onwards	75% RBI Max: 75%	0.15% – 0.30% (Min ₹125)	6 to 12 months
Manappuram Manappuram Finance View ManappuramSchemes & Calculator →	9.90% p.a. onwards	75% RBI Max: 75%	₹10 at security, plus audit charges	3 to 12 months
IIFL IIFL Finance	11.88% p.a. onwards	75% RBI Max: 75%	Flat ₹500 processing fee	Up to 24 months
HDFC HDFC Bank View HDFCSchemes & Calculator →	11.91% p.a. onwards	75% RBI Max: 75%	Processing-fee offer on Term Loans; Nil foreclosure for MSE ≤ ₹50L	6 to 42 months

💡 Note on Caching & Updates: The interest rates listed above are researched manually and updated regularly. Lenders can adjust pricing based on CIBIL scores, loan amounts, and underlying benchmark adjustments. Please verify final parameters directly with the branch prior to signing loan agreements.

⚡ What Is Today's Gold Loan Value Per Gram?

Compare today's maximum loan value per gram based on indicative daily gold rates. Calculated using the RBI-mandated Loan-to-Value (LTV) limit of 75%. Note that 24K raw gold bullion, bars, and coins are generally not eligible for gold jewellery loans.

22 Carat Gold Loan Value
₹10,305 / gram
Based on today's 22K rate: ₹13,740/g

18 Carat Gold Loan Value
₹8,432 / gram
Based on today's 18K rate: ₹11,242/g

Updated: 7 Aug 2026

⚖️ Gold Needed Calculator

Enter the loan amount you want, and find out how much gold weight you need to pledge as collateral.

Desired Loan Amount (₹)

₹

For 22K Gold:4.85 grams

For 24K Gold:4.45 grams

For 18K Gold:5.93 grams

Weight vs. Max Loan Estimate

Weight	22K Max Loan	24K Max Loan
5 grams	₹51,525	₹56,228
10 grams	₹1,03,050	₹1,12,455
20 grams	₹2,06,100	₹2,24,910
50 grams	₹5,15,250	₹5,62,275

💰 Interest Cost for ₹1 Lakh Loan

See how much interest you will pay monthly and annually for a ₹1,00,000 gold loan at different rates.

Interest Rate	Monthly Interest	Annual Interest
8.25% p.a. Best Bank Rate	₹688	₹8,250
9.50% p.a. Average Bank Rate	₹792	₹9,500
12.00% p.a. Average NBFC Rate	₹1,000	₹12,000
15.00% p.a. Max NBFC Rate	₹1,250	₹15,000

💡 Pro Tip: Banks usually charge simpler interest on reducing balance, whereas NBFCs may charge flat interest monthly. Confirm the billing type before choosing a lender.

How Much Gold Loan Can You Get Based on Today's Gold Rate?

Enter your gold weight and purity to calculate how much you can borrow today. Select a lender to calculate lender-specific loan amounts based on their LTV ratio.

Gold Weight (in Grams)

Gold Purity (Karat)

Choose Lender (LTV / Rates)

📊 estimated loan value

Base Gold Rate (22K):₹13,740/g

Market Value (20g):₹2,74,800

LTV (Loan-to-Value):75%

Estimated Interest:7.00% - 16.00% p.a.

Max Loan Amount

₹2,06,100

Interest/Month

~₹1,632

Open Detailed Loan Calculator →

📍 Find Local Gold Loan Providers in Your City

Choose your city to check today's hyperlocal gold rate and find physical gold loan branches near you.

🔍 Check Gold Loan Offers in Your City (Search 1,800+ Cities):

Gold Loan EMI Calculator & Repayment Options

Unlike home or personal loans, gold loans offer unique and flexible repayment structures to suit your cash flow. If you are debating between borrowing options, read our detailed comparison of Gold Loan vs Personal Loan.

Bullet Repayment: Repay the entire principal amount and interest as a single payment at the end of the loan tenure. No monthly payments are required.
Interest Overdraft: Pay the interest amount monthly, and repay the principal at maturity.
Regular EMIs: Standard monthly payments consisting of both principal and interest components.

Gold Loan Eligibility Criteria

Gold loans have one of the simplest eligibility criteria because they are fully secured by your gold jewelry. You can check the current value of your assets on our live Gold Rate Today page, or use our interactive Gold Loan Calculator to estimate the loan value. For long-term asset planning, check out the Gold Price Forecast to see where rates are headed.

Age: Usually between 18 and 70 years.
Gold Purity: Lenders accept gold ornaments of purity between 18 Carats and 22 Carats. Sovereign gold bonds, raw gold bullion, bars, or coins are generally not eligible for gold jewelry loans.
Documents Required: Identity proof (Aadhaar Card, PAN Card, Passport) and Address proof. No income proof or salary slips are required.

Gold Loan Charges and Fees Explained

Apart from interest rates, you should keep an eye on these charges which vary from lender to lender:

Processing Fees: Ranges from 0.1% to 1% of the loan amount or a flat fee (e.g. ₹500 to ₹1,000).
Gold Valuation Fees: Paid to the appraiser who evaluates the weight and purity of your gold jewelry.
Prepayment Charges: Penalty if you close the loan before the tenure. Many NBFCs offer zero prepayment penalties.

Which Is Better: A Bank Gold Loan or an NBFC Gold Loan?

Choosing between a commercial bank (like SBI, HDFC) and a Non-Banking Financial Company (like Muthoot, Manappuram) depends on your priority:

Features	Commercial Banks (e.g., SBI, HDFC)	NBFCs (e.g., Muthoot, Manappuram)
Interest Rates	Usually lower (7.00% - 12.00%)	Slightly higher (9.00% - 24.00%)
Processing Time	Moderate (1 to 3 hours)	Very fast (15 to 30 minutes)
Documentation	Slightly more paperwork	Minimal paperwork & instant payout

What Happens If You Miss Gold Loan Payments?

Missing your payments or defaulting on a gold loan has serious consequences:

Late Payment Charges: Lenders charge a penal interest (typically 2% per annum over and above the normal rate) for overdue periods.
Credit Score Impact: Your default is reported to CIBIL and other credit bureaus, which significantly lowers your credit score.
Gold Auctioning: Since the gold ornaments are collateral, the lender has the legal right to public auction your gold jewelry if you do not clear the dues despite receiving multiple notices.

🛡️ Why Compare Gold Loans on WealthMinty?

WealthMinty is a leading, independent financial information and analysis platform in India. Our mission is to help you make informed investment and borrowing decisions without any sales bias or hidden agendas.

⚖️ Zero Bias & Independent

We do not sell gold loans, represent any bank, or charge commission for listing lenders. Our rankings and comparison charts are completely objective and fact-based.

⚡ Daily Indicative Rates

Our calculators use indicative daily gold rates curated by our editorial team from public bullion market data (broadly tracking IBJA, MCX and LBMA published rates) to estimate the maximum loan value of your gold.

🔍 Full Transparency

We list interest rate ranges, processing fees, and loan-to-value (LTV) limits clearly, helping you spot hidden charges and avoid high penal interest rates.

🔍 Frequently Asked Questions on Gold Loan Interest Rates

Gold loan interest rates in India currently range from 7.00% to 27.00% per annum. Public sector banks offer the lowest interest rates — Indian Overseas Bank from 7.00% p.a. (KCC Jewel Loan, effective ~4% with subvention), Bank of Baroda from 7.70% p.a. (agri), Punjab National Bank (PNB) from 8.50% p.a., and State Bank of India (SBI) from 8.70% p.a. You can check detailed repayment options, margins, and calculators on our dedicated SBI Gold Loan Interest Rate page, or compare other banks and NBFCs (like Muthoot and Manappuram) in the table above to find the most economical scheme.

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WealthMinty Research Desk ➔

Financial Analysis & Gold Market Research Team

ℹ️ Indicative rates updated daily by our editorial team | Data methodology

🛡️ Why Trust WealthMinty's GoldResearch & Market Data?

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.