Gold loan or loan against gold is a secured loan in which a customer pledges his/ her gold ornaments as a collateral to get cash. While other loans require income or salary proofs, one only needs to pledge gold and submit KYC documents to avail gold loan. Below is the list of gold loan providers in India along with other important parameters for you to decide which one to choose:
Gold Loan Interest Rate in India
| S.NO | Gold Loan Provider | Interest Rate (P.a) | Loan Amount | Loan Tenure |
| 1 | Central Bank of India | MCLR+2.00% | 70% of the current market price of 22K gold whichever is less | Up to 12 months |
| 2 | Bank of Baroda | 3%+MCLR | Rs. 0.25 lakh-Rs. 25 lakh | Up to 12 months |
| 3 | SBI Gold Loan | 9.15% | Rs.20,000-Rs. 20 lakh | 36 months maximum |
| 4 | IIFL | 9.24%-24% | 75% of the market value of your gold | 3 months-11 months |
| 5 | Federal Bank | 9.50% | Rs.1000-Rs.1.5 crore | NA |
| 6 | J&K Bank | 9.50%-10% | Rs.10,000-Rs.1,500,000 | Up to 1 year |
| 7 | Canara Bank | Max- 9.95% | Rs.10,000-Rs.10,00,000 | Up to 12 months |
| 8 | HDFC Gold Loan | 10%-27.43% | Rs.25,000/ Rs.10,000(In rural market) | 3 months-24 months |
| 8 | ICICI Bank Gold Loan | 10%-19.76% | Rs.10,000-Rs.15,00,000 | 3 months-12 months |
| 9 | Kotak Mahindra Bank | 10.50%-17% | Rs.20,000-Rs.25,00,000 | Up to 4 years |
| 10 | Bandhan Bank | 10.99%-18% | Min-Rs.10,000 | 6 months-36 months |
| 11 | Punjab and Sind Bank | Max-10.50% | Rs.1000-Rs.25 lakh | Agriculture loans-24 months For other loans-Up to 12 months |
| 12 | Indusland | 11.25%-15.50% | NA | 3/6/9 and 12 months |
| 13 | Muthoot Gold Loan | 12%-27% | Rs.1500-No maximum limit(Varies from plan to plan) | 7 days-36 months |
| 14 | YES Bank Gold Loan | Min-12% | Rs.25,000-Rs.50 lakh | 6 months-36 months |
| 15 | Axis Bank Gold Loan | 14% | Rs.25,001-Rs.20,00,000 | 6 months-36 months |
| 16 | Jana Small Finance Bank | 14% | Min-Rs.5000 | NA |
| 17 | Manappuram Gold Loan | 14%-29% | Rs.1000-Rs.1.5 crore | 3 months |
| 18 | City Union Bank | 14.25% | Rs.5000-Rs.5 lakh | 12 months |
| 19 | Fincare Small Finance bank | 14.99%-22.99% | Rs.5000-Rs.25 lakh | 9 months-24 months |
| 20 | AU Small Finance Bank | Up to 18% | Rs.10,000-Rs.15 lakh | NA |
| 21 | Bajaj Finserv | NA | Up to Rs.25 lakh | 1 months-36 months |
| 22 | Bank of Maharashtra* | NA | Rs.20,000-Rs.5 lakh | Up to 12 months |
| 23 | Indian overseas bank | NA | Up to Rs.10 lakh | Up to 36 months |
| 24 | DCB Bank | NA | Up to Rs.20 lakh | 1 years-5 years |
| 25 | IDBI Bank | NA | Rs.10,000-Rs.5 lakh | 1 months-24 months |
| 26 | Karnataka Bank | As per MCLR guidelines | Up to 25 lakh | 12 months |
Note: The loan tenure and interest rate will vary depending up on the gold loan scheme you avail
*Gold loan facility from Bank of Maharashtra is not available across India but in a few cities. For more details, visit their official website.
Gold Loan Per Gram
- One can get gold loan by 75% of the market value of the net weight of the gold ornaments excluding stones attached to ornaments, whichever is less
- The weight of coins pledged should not exceed 50 grams per borrower
Factors Affecting Gold Loan Interest Rate
Listed below are some of the factors that affect gold loan interest rates
- Inflation: With increase in inflation, the purchase power of domestic currency reduces and so does the rate of interest.
- Economic Growth: Interest rates may increase with improved economic growth that will lead to increase in the demand for credit
- Demand and supply: Interest rates on a loan against gold increases if the demand for loan increases
Gold Loan Interest Rate of Top 5 Banks
Below is the list of top 5 banks offering gold loan with interest rate:
- SBI Gold Loan: Gold loan from SBI can be availed by pledging your gold ornaments with minimum paperwork and low interest rate. You can also get a gold loan against gold coins sold by banks.
| Parameters | Min-max |
| Interest rate | 9.15% Agricultural & Rural-9.95% |
| Loan Amount | Rural Market-Rs.Min. 10,000 Others-Rs.20,000-Rs.20 lakh |
| Tenure | Agricultural & Rural-12 months-36 months Others-Up to 36 months |
| Loan processing charges | 0.50% of the loan amount+GST |
- HDFC Bank Gold Loan: One can easily get a loan within 45 minutes from HDFC Bank with minimal documentation charges.The funds from gold loans can be used for wedding, education, business expansion or any other similar purpose.
| Parameters | Min-max |
| Interest rate | 10% |
| Loan Amount | Rural Market-Rs.10,000 Others-Rs.25,000 |
| Tenure | 3-24 months |
| Loan processing charges | 1.5%+GST |
- Muthoot Finance: Muthoot finance has the largest gold loan portfolio in India. It offers quick loan disbursal with minimal documentation. It offers a number of schemes to their customers. While some are specific to women and others are limited to demographic areas. What’s more, you can prepay your loan amount without paying any penalty.
| Parameters | Min-max |
| Interest rate | Southern branches-0-26% Northern Branches-0-27% |
| Loan Amount | Rs.1500-No limit |
| Tenure | 3 months-360 days |
| Loan processing charges | 0.5%-1%+GST |
- Canara Bank: To meet medical expenses and other unforeseen commitments either for investment or domestic purposes, one can avail gold loan from Canara bank against gold ornaments.
| Parameters | Min-max |
| Interest rate | 13% |
| Loan Amount | Rs.10,000-Rs.10,00,000 |
| Tenure | 12 months |
| Loan processing charges | 1% of the loan amount |
- Manappuram:
Anyone who owns gold ornaments can avail gold loan from Manappuram with minimal documentation. It offers a number of schemes which one can choose as per their interest rate and demographic of the customer.
| Parameters | Min-max |
| Max AnnualisedInterest rate | Kerala-31.09% In other states-31.52% |
| Loan Amount | Rs.1,000-Rs. 1.5 crore |
| Tenure | 90 days-365 days |
Frequently Asked Questions (FAQs)
Can anyone avail the gold loan?
Yes, provided the age of an individual falls within the age group of 18 years to 70 years.
How long does it take to process Gold Loan?
Gold loan from any bank is usually disbursed within an hour. However, this is subject to the loan amount, verification of the gold quality and other documents that you submit.
What type of security do I need to provide to avail gold loan?
The loan amount will be sanctioned against the gold pledged by you. Hence, the only security which an individual needs to provide is the gold they are ready to pledge.
How do I repay the gold loan?
One can repay the loan amount via cash, cheque, DD or through fund transfer medium. The gold jewellery will be released on realisation of amount by the gold loan provider.
Is it possible to repay my gold loan amount partially?
Yes, you can make part-payment but the gold jewellery will only be released after the entire outstanding amount is repaid.
Can I prepay or foreclose my gold loan?
Yes, one can prepay the loan amount by paying the foreclosure charges.
How much can I expect for my gold?
This depends on the rate of gold prevailing on that date and purity of gold in the ornaments
Which documents do I need to provide to avail gold loan?
Customers need to submit KYC documents which include identity, address along with passport size photographs.