Top 10 Banks/NBFCs offering Gold Loan in India

Muthoot Finance Ltd. offers gold loans at a low-interest rate starting at 12% p.a. 

Key Highlights:

• Interest Rate- 12% p.a. onwards
• Lowest EMI / Lakh- Rs. 3,321
• Loan Amount- Minimum- Rs. 1,500; Maximum- No Limit 
• Loan Tenure- 7 days to 36 months
• Collateral / Security- Any gold item of up to 50 g with a purity of 18K to 22K
• Processing Fee- 0.25% to 1% of the loan amount

With IIFL, you can get a loan against your gold in just 5 minutes. Walk into any IIFL Gold Loan branch with your gold, ID proof and address proof and get instant approval.

Key Highlights:

• Interest Rate- 9.24% p.a. onwards
• Loan Amount- Rs.3,000 onwards
• Tenure- 3 months to 11 months
• Loan Disbursal Time- 30 minutes
• Schemes- Customised schemes to meet your requirements

With HDFC Bank, you can get up to 80% of the market value of your gold as loan. 

Key Highlights:

• Interest Rate- 9.90% onwards
• Loan Tenure- 3 months to 24 months
• Loan Amount- Loans starting at Rs.25,000 (Minimum loan amount of Rs.10,000 available in rural markets)
• Gold Loan Scheme- Term Loan, OD and Bullet repayment 
• Processing Fee- 1.5% + GST
• Custody- Stored under a unique triple-layered security

ICICI Bank provides a loan of up to Rs.1 crore against your gold jewellery.

Key Highlights:

• Interest Rate- 11% p.a. onwards
• Loan Amount- Rs.10,000 to Rs.1 crore
• Tenure- 3 months to 12 months
• Processing Fee- 1% of the loan amount
• Documentation Charges- Rs.199
• Disbursal time- 60 minutes

Canara Bank gold loan is also known as Swarna Loan and has two other variants namely Swarna Overdraft & Swarna Express.

Key Highlights:

• Interest Rate- 7.65% p.a. onwards
• Loan Amount- Rs. 5,000 to Rs. 20 Lakh
• Tenure- 6 months to 2 years
• Gold Items accepted- Jewellery and gold coins sold by banks
• Processing Charges- 0.25% of the loan amount
• Eligibility- Savings account with satisfactory dealings or Credit-worthy New Customers

Axis Bank gold loan amount ranges from minimum Rs. 25,001 to a maximum of Rs. 25 lakh.

Key Highlights:

• Interest Rate- 12.50% p.a. onwards
• Loan Amount- Rs.25,000 to Rs.25 lakh
• Tenure- 3 months to 3 years
• Age- 18 to 75 years
• Gold Items Accepted- Jewellery and gold coins sold by banks
• Processing Charges- 1% of the loan amount

Manappuram Finance offers gold loan of up to Rs.1.5 crore.

Key Highlights:

• Interest Rate- Up to 29% p.a.
• Loan Amount- Rs.1,000 to Rs.1.5 crore
• Tenure- Minimum 3 months
• Processing Fee- Rs. 10* at the time of loan settlement, Additional Processing Fee on Repledge- 0.07%* of New Pledge Value
• Schemes- ‘High Loan to Value’ and ‘Low Interest Rate’

With Federal Bank, you can get a gold loan of up to Rs.1.5 crore.

Key Highlights:

• Interest Rate- 8.50% p.a. onwards
• Loan Amount- Rs.1,000 to Rs.1.5 crore
• Tenure- Minimum 6 months
• Repayment Options- Lump Sum, EMI
• Gold Items accepted- Gold ornaments verified for quality and quantity (Security for the loan will be pledged against 22 karat gold ornaments)
• Rate per gram- Maximum amount per gram is up to 85% of the gold price

Bank of Baroda offers gold loan of up to Rs.25 lakh at a highly competitive interest rate.

Key Highlights:

• Interest Rate- 8.75% p.a. onwards
• Loan Amount- Rs.25 lakh (maximum)
• Tenure- Up to 12 months
• Age- 18 to 70 years
• Gold Items accepted- Ornaments, jewellery & specially minted gold coins sold by banks (Min. 18 K gold)
• Processing Charges- 0%- 0.5% of the sanctioned limit (Max. Rs. 3,500)

With State Bank of India, you can get a gold loan of up to Rs.50 lakh. SBI gold loan is also one of the lowest interest gold loans in India.

Key Highlights:

• Interest Rate- 7.50% p.a. onwards
• Loan Amount- Rs.20,000 to Rs.50 lakh
• Tenure- Up to 36 months
• Age- 18 years and above
• Gold Items accepted- Gold ornaments verified for quality and quantity
• Processing Charges- Nil if applied through YONO, else 0.25% + GST | Min. Rs. 250 + GST

Note: All the above mentioned interest rates & charges are subject to change as per the sole discretion of the lender. GST and service tax may be levied on the mentioned charges.

What is the Prepayment option?

In a gold loan, just like any other loan, the borrower is expected to repay the principal amount as well as interest at the end of tenor or through EMI. However, one can also pre-pay the total amount including principal and accrued interest before the end of the tenor or during the term. Some banks/NBFCs do not charge any penalty for prepayment while others do.

What happens if one is not able to repay their loan amount?

Bank/NBFCs will give periodical reminders to the customer about the payment after the end of the tenure. After that, a final notice will be given to the customer about the auction. Failure to repay the loan amount will result in your deposited gold to be sold in an auction.

Can I get back part of my gold jewellery by making a partial loan payment?

This varies from bank to bank. While IIFL does allow their borrowers to release a part of their pledged gold by making a part payment, other banks such as ICICI do not. It is recommended to check about this facility with the bank or NBFC while availing gold loan.

How much loan can I avail against my gold?

This depends on the rate of gold per gram on that date and the purity, net weight of gold in your gold ornaments.

How will interest be calculated if I make a part payment?

If you partly pay your loan amount, then future interest will be charged only on the balance amount after part-payment.

What happens if I am unable to make a loan payment?

In case you are not able to make payment or miss making payment on time, you will be charged a penal interest at the rate decided by the Bank or NBFC over and above the normal rate of interest.