Gold Loan Interest Rates 2025: Lowest Gold Loan Interest Rate in India

By Mayashree Acharya

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Updated on: Aug 7th, 2025

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17 min read

A gold loan is a secured loan where you pledge gold jewellery or coins to access funds for personal or business needs. In 2025, gold loan interest rates in India range from 7.75% to 29% p.a., depending on the lender, loan amount, gold purity, tenure, and whether you choose a bank or NBFC.

In this guide, you’ll find the latest gold loan interest rates for 2025, along with eligibility, documentation, repayment options, and a comparison of top banks and NBFCs.

What is the Gold Loan Interest Rate? 

A gold loan interest rate is the percentage charged by banks or financial institutions against the loan amount provided when borrowers pledge gold as collateral. In India, gold loan interest rates generally vary between 8% and 26% per annum. Borrowers can repay the interest either in monthly instalments or as a lump sum based on the lender's terms.

Highlights of 2025 Gold Loan Interest Rates

The table below compares the gold loan interest rates, loan tenures, and processing fees offered by top banks and financial institutions in India for 2025:

Bank

Interest Rate Range (p.a.)

Loan Tenure

Processing Fee

SBI

8.55% – 10.25%

Up to 36 months

0.50% of the loan amount

Canara Bank

9.25%

Up to 12 months

₹500 to ₹1000 approx.

Union Bank of India

8.70% – 9.40%

Up to 12 months

0.50% of the loan amount + GST

Indian Overseas Bank

9.30% – 10.25%

Up to 12 months

₹500 approx.

PNB

8.35% – 9.75%

12 to 24 months

0.75% of the loan amount + GST

Bank of Baroda

7.75% – 9.95%

Up to 12 months

₹500 + GST

HDFC Bank

9.30% – 17.86%

3 to 24 months

₹250 to ₹5,000 + GST

Federal Bank

9.99% – 11.90%

Up to 12 months

0.25% of the loan amount + GST

Central Bank of India

7.90% – 8.90%

Up to 12 months

0.50% of the loan amount + GST

Bank of India

8.35% – 9.05%

Up to 12 months

0.50% + GST

ICICI Bank

9.15% – 16.75%

Up to 12 months

₹199 to ₹4999

Axis Bank

9.75% – 19.00%

6 to 36 months

1% of the loan amount + GST

Features of Gold Loan

Gold loans offer a convenient and secured borrowing option for individuals who need quick access to funds by pledging gold assets. :

  • Secured loan using gold jewellery or coins as collateral
  • Quick disbursal and minimal documentation
  • Short repayment tenures ranging from 3 months to 3 years
  • Interest payment options include emi, bullet repayment or partial prepayment
  • No impact of credit score on loan approval but may affect interest rate
  • Lower interest rate compared to personal loan
  • Pledged gold is returned on successful repayment

Eligibility for Gold Loan

The eligibility criteria set for a gold loan can vary from one lender to another. Therefore, it is advisable to check such criteria outlined on the lender's website before initiating the application for a gold loan.

Here are some eligibility criteria commonly set by most lenders in India for gold loans: 

  • An applicant should be 18 years of age or above.
  • He/she must pledge gold ornaments or articles as security against the loan. 
  • The applicant should pledge gold of 18 carats or above as security. 

Documents Required to Apply for Gold Loan

The list of documents required at the time of applying for a gold loan varies, depending upon the lender’s terms and conditions. Take a look at the following documents that are generally needed for a gold loan: 

  • Duly filled and signed gold loan application form.
  • Latest passport-size photographs of the applicant.
  • PAN card or Form 60.
  • Proof of Identity (Aadhaar card, Voter ID card, driving license, etc).
  • Proof of Address (Passport, utility bills, rental agreement, etc).
  • Age Proof (Birth certificate or school passing certificate).
  • Signature proof.
  • Other post-loan disbursement documents (if required).

Gold Loan Processing Fee and Loan Appraiser Charges

Take a look at the following table to find out the applicable processing fees and loan appraiser charges of different leading banks in India:

Name of the Bank

Processing Fee & Appraiser Charges

SBI Gold Loan

Rs. 200 + GST in case of 3 months Bullet Repayment Gold Loan

Rs. 300 + GST in case of 6 months Bullet Repayment Gold Loan

0.50% of loan amount subject to minimum Rs. 500 and maximum Rs. 10,000 + GST in case of 12 months Bullet Repayment Gold Loan

0.50% of loan amount subject to minimum Rs. 500 + applicable GST in case of EMI-based Gold Loan

HDFC Gold Loan

Up to 1% of disbursal amount (inclusive of applicable tax)

Axis Gold Loan

Rs. 300/Case in case of fresh loan up to Rs. 3 lakh 

0.5% of the loan amount in case of a renewed loan of more than Rs. 2 lakhs 

Canara Gold Loan

0.50% of the loan amount with a minimum of Rs.500 and a maximum of Rs.5,000 in the case of the Swarna Overdraft gold loan 

Rs. 2,750 in case of MSME and Agricultural Gold Loan Schemes amounting to more than Rs. 10 lakh

BOB Gold Loan

NIL up to Rs. 3 lakhs 

Applicable as per bank’s terms and conditions along with GST in case of loan amount above Rs. 3 lakh up to Rs. 50 lakhs

Karnataka Bank Gold Loan

No limit specified 

PNB Gold Loan

0.30% of loan amount + GST or Rs. 500 + applicable tax, whichever is higher

Kotak Gold Loan

Up to 2% of loan amount + applicable GST

Federal Gold Loan

Up to 3% of loan amount + applicable GST

Central Bank of India

0.50% of the loan amount, subject to a minimum of Rs. 250 and a maximum of Rs. 5,000

Indian Bank Gold Loan

NIL 

IDBI Bank Gold Loan

1%

IndusInd Bank Gold Loan

1% of the loan amount + GST

Factors Influencing Gold Loan Interest Rates

Here are some of the factors that influence the interest rates for gold loans offered by prominent banks and financial institutions in India.

Monthly Income 

  • While processing a gold loan request, the lender takes into account the applicant's monthly income. 
  • When you earn a stable income, the bank or financial institution becomes more assured of your capacity to repay the loan. 
  • This subsequently leads to a lower interest rate charged against your gold loan.

Gold Market Rate 

  • As per the Reserve Bank of India, the Loan to Value (LTV) ratio for gold loans is 75%. 
  • This ratio denotes the maximum loan amount that banks can provide based on the value of the pledged gold. 
  • If the current gold market rate is high, the value of the articles you pledge against your gold loan will also be high. 
  • In this case, lenders offer lower interest rates since less risk will be involved. 

Principal Loan Amount 

  • The amount of loan you request from a lender determines the rate of interest against which your gold loan will be charged. 
  • You will be liable to pay higher interest if you want to avail a higher loan amount. 
  • Therefore, all borrowers need to assess their loan requirements before applying for a gold loan. 

External Benchmark Lending Rates 

  • All gold loans facilitated by Indian banks are linked with an external benchmark, be it the RBI repo rate or the 10-year government bond rate. 
  • The interest rates on gold loans are subject to change when the Reserve Bank of India or the Government of India adjusts its policy rates. If there is an increase in the policy rates, the gold interest rate will also increase. 

Credit Score 

  • As an eligibility criterion, a lender in India considers your creditworthiness, defined by the CIBIL score, while sanctioning a gold loan. 
  • A borrower with a good credit score is more likely to qualify for lower interest rates. 
  • A good credit score, representing a good repayment history, assures a lender that you will repay the loan amount without any hassle. 

Gold Loan Interest Rate Provided by Top Banks in India 2025 

Here is a table highlighting the rate of interest charged against the gold loan provided by top banks in India, along with the loan amount and tenure:

Bank

Interest Rate

Loan Tenure

SBI

8.80% – 10.05% 

3–36 months 

HDFC Bank

9.30% – 17.86% 

6–42 months

Axis Bank

17% onwards floating and fixed 

6–36 months

Canara Bank

9.25% 

12–24 months

Bank of Baroda

9.15% onwards

12–36 months

Karnataka Bank

9.33% & 11.30%

6–12 months

PNB

Up to 9.25%

As per bank

Kotak

8% – 24%

Up to 48 months

Federal Bank

8.99% onwards

As per bank

Central Bank of India

8.40% – 9.50%

Up to 12 months

Indian Bank

8.65% – 10.40%

Up to 12 months

IDBI Bank

Varies

3–36 months

IndusInd Bank

9.60% – 16.00%

Up to 12 months

Comparison of Gold Loan Interest Rates Provided by Top Non-Banking Institutions in India

Given below is a comparative outline of varying gold loan interest rates provided by different financial institutions in India other than leading banks: 

Name of the Lender

Interest Rate (p.a.)

Loan Tenure

Bajaj Finserv

12.99% onwards

1 month to 36 months

CASHe

33% to 36%

Typically 3 to 12 months

Indiabulls

13.99% onwards

Usually up to 24 months

Muthoot Finance

12% to 27%

7 days to 36 months

TATA Capital

10.99% onwards

Typically 6 to 24 months

IIFL

9.24% to 24%

3 months to 11 months

Manappuram Finance

14% to 29%

Around 3 months

Best Gold Loan Interest Rate

The best bank for a gold loan varies for different individuals, depending on their financial requirements and preferences. Take a look at the following table to find out why the gold loan interest rate offered by some leading Indian banks is considered the best:

Banks

Particulars

Central Bank of India

Best for offering the lowest gold interest rate in India 

Axis Bank

Ideal for borrowers who are seeking a fixed interest rate against their gold loan 

State Bank of India

Known for offering bullet repayment options of 3 and 6 months

Tamilnad Mercantile Bank

Best suited for individuals looking for short-term loans, with the loan amount starting from Rs. 3,000

Punjab National Bank

Renowned for providing the best financing options against both sovereign gold bonds (SGBs) and other forms of gold assets including jewellery and coins

Indian Overseas Bank

Ideal for women borrowers, seeking for insurance add-on under the PMSBY scheme

Bank of Baroda

Offers best loan interest rate against 18-carat purity gold

Gold Loan Interest Rate Calculator

gold loan calculator is a financial tool readily accessible online that computes the approximate value of the loan amount you can avail. It can also determine the amount of interest you will be liable to pay against a gold loan, along with the monthly EMI amount. 

This tool proves to be valuable for borrowers planning to apply for a gold loan, offering them an estimate of their repayment liability.

How to Calculate Gold Loan Interest Rate?

The interest amount payable on a gold loan, as determined by the interest rate, can also be calculated using a mathematical formula. Let us now discuss this formula with the help of an example. 

P x R x (1+R)^N / [(1+R)^N-1]

Where,

P = Principal amount
R = Rate of Interest (annual)
N = Loan tenure (in months)

Suppose you want to avail a gold loan of Rs. 1 lakh from a leading bank in India, charging 7.2% interest for 3 years. 

By incorporating the values into the formula, you will find that 

The amount payable = 1,00,000 * 0.006 * (1 + 0.006)36 / ((1 + 0.006)36 – 1) 

= Rs. 1,11,487

Gold Loan Maximum and Minimum Limit

Here is a detailed overview of the maximum and minimum limit of loan amounts you can sanction from the leading Indian banks and financial institutions:

Bank/Financial Institution

Minimum Amount 

Maximum Amount 

HDFC Bank

Rs.10,000

Rs.5 crore

ICICI Bank

Rs.10,000

Rs.5 crore

SBI Bank 

Rs.20,000

Rs.50 lakh

Yes Bank

Rs.10,000

Rs.5 crore

Canara Bank

Rs.5,000

Rs. 50 lakh

Axis Bank

Rs.10,000

Rs.5 crore

Bank of Baroda

No limit specified 

Rs.50 lakh

Karnataka Bank

No limit specified 

Rs.25 lakh

Punjab National Bank 

Rs.25,000

Rs.25 lakh

Kotak Bank 

Rs.20,000

Rs.1.5 crore

Federal Bank 

Rs.1,000

Rs.1.5 crore

Central Bank of India

Rs.10,000

Rs.40 lakh

Indian Bank

Rs.25,000

Rs.10 lakh

IDBI Bank

Rs.10,000

Rs.50 lakh

IndusInd Bank 

No limit specified 

Rs.20 Lakh

Bajaj Finserv

No limit specified 

Rs.25 lakh

Indiabulls

Rs.1,000

Rs.15 lakh

Muthoot Finance

Rs.1,500

No maximum limit (Varies from plan to plan)

TATA Capital

Rs.75,000

Rs.25 lakh

IIFL

No limit specified 

Up to 75% of the market value of your gold

Manappuram Finance

Rs.1,000

Rs.1.5 crore

CASHe

Rs.9,000

Rs.3 lakh

How to Apply for a Gold Loan? 

You can easily apply for a gold loan, either through online or offline mode. However, before proceeding with the application process, it is in your best interest to seek out lenders offering low-interest rates and flexible terms and conditions. Moreover, you must also check the eligibility criteria and documentation requirements before applying. 

Following this, you can move forward with the application process as outlined below:

Online 

The following is a step-by-step guide on how to apply for a gold loan online. 

Step 1: Visit the official website of your desired lender. 

Step 2: Navigate to the ‘Gold Loan’ section under ‘Loan Products’. 

Step 3: Look for the ‘Apply Now’ tab on the ‘Gold Loan’ page and click on it. You will be redirected to a new page displaying an application form. 

Step 4: Fill it up carefully with all the required details. 

Step 5: Click on the ‘Submit’ tab after verifying. 

Offline 

In case your lender does not provide an online application facility, you will have to apply for a gold loan through the offline mode. Here is a stepwise process you need to follow with due diligence for doing so. 

Step 1: Visit the nearest branch of your preferred lender, along with the required documents. 

Step 2: Consult with a branch representative and obtain a gold loan application form. 

Step 3: Fill up the form with accurate details and attach the supporting documents with it. 

Step 4: Submit it to the branch representative. 

Once you go through the above-mentioned steps, your gold loan application request will be processed. Upon successful processing and verification, you will be sanctioned a gold loan. 

How to Close a Gold Loan? 

There are 4 ways of closing a gold loan. Let us discuss these methods in detail.

By paying the interest amount as EMI and the principal amount 

  • Under this method, borrowers are allowed to pay the amount of interest in small instalments or EMIs throughout the loan tenure. 
  • On the other hand, the principal loan amount is payable at the end of the tenure in a single lump sum payment.

By paying regular EMIs

  • This method involves repayment of both the principal loan amount and the amount of interest as EMIs throughout the tenure every month. 
  • It is an ideal way of repayment for salaried borrowers or individuals with a fixed monthly income. 

By making bullet repayment 

  • In this method, an individual is required to pay the entire principal amount along with interest in one lump sum at the end of the loan tenure instead of making small periodic payments. 
  • This method offers borrowers flexibility, especially those whose income varies throughout the year. 

By making partial payments or foreclosure

  • The partial payment method allows individuals to close their gold loan before the tenure by paying off the entire loan amount along with the interest. 
  • By doing so, you can significantly save on your interest payments. It is suitable for those financially secure individuals to repay their loan ahead of schedule and claim back the pledged gold articles. 

Although an attractive funding option, it is advisable for all borrowers to check for the lowest gold loan interest rate and flexible terms and conditions while considering loans against their gold articles. Moreover, it is equally important to consider one’s financial standing to repay the loan before prioritising an option. 

Other Banks Gold Loan Interest Rates:
1. ICICI Bank Gold Loan Interest Rate
2. Central Bank Gold Loan Interest Rate
3. Union Bank Gold Loan Interest Rate
4. Indian Overseas Bank (IOB) Gold Loan Interest Rate

Frequently Asked Questions

Which bank has the lowest gold loan interest?

Kotak Mahindra Bank offers the lowest gold loan interest rate, starting from 8%. 

What is the interest of a Rs. 1 lakh gold loan?

The rate of interest on a loan against Rs. 1 lakh gold ranges between 8% to 24%, or even higher, depending on factors such as prevailing economic conditions or the type of lender. 

Can we get a 100% gold loan?

No, it is not possible to avail a 100% gold loan. An individual can obtain a loan of up to 75% of the current market value of their gold in India. 

What are the limitations of a gold loan?

Although an appealing financing option, there are some risks associated with a gold loan. One key limitation of such a loan is the possibility of the lender freezing your pledged articles and selling them off in an auction to release the outstanding loan amount in the event of default.

What is the highest amount for a gold loan?

In India, the highest amount for a gold loan is Rs. 1.5 crore. 

What is the maximum gold loan amount in SBI?

The maximum loan amount provided by the State Bank of India against gold is Rs. 50 lakhs.

What is the interest rate for agricultural gold loans?

The interest rate on agricultural gold loans offered by leading financial institutions is 7%. 

How to calculate the interest rate for a gold loan?

The interest on a gold loan can be easily determined by either using an online calculator or a mathematical formula. 

How can I check my SBI gold loan status?

You can track your SBI gold loan status by visiting the official website of the State Bank of India. For this, you need to specify your reference number and mobile number along with your ISD code.

What is the Loan-to-Value (LTV) ratio, and how does it affect the interest rate?

The loan-to-value ratio is the maximum percentage of the gold value that can be lent. In India, the RBI allows up to 75% LTV. Higher gold prices or lower LTV generally result in better interest rates.

 

Are gold loan interest rates fixed or floating?

Gold loan interest rates can be either fixed or floating. Banks usually offer fixed rates, while NBFC lenders may offer both options.

 

What are the main factors that determine my gold loan interest rate?

The main factors include loan amount, gold purity and weight, loan tenure, applicant's income, credit history and current gold market rate.

 

Are interest rates from banks lower than NBFCs?

Interest rates from banks are generally lower than those from NBFCs. However, NBFCs offer faster processing and more flexible terms.

 

Can I negotiate the gold loan interest rate?

Yes, you can negotiate the interest rate, especially if you have a good relationship with the lender or pledge gold of higher purity and weight.

About the Author
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Mayashree Acharya

Senior Content Writer
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I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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