Comparison of Gold Loan Interest rates for different banks


Loans that are provided by mortgaging gold through financial institutions are known as gold loans. The interest rate of the gold loan is relatively lower than other loans, which makes it a more preferable option for meeting short term credit emergencies. 

Important facts to look out for:

Before comparing interest rates, these are some important facts about a gold loan that you should know,

  • A gold loan is a secured loan.
  • Normally interest charged between 12% to 18%, in the case of NBFCs it can go to 24% and above.
  • Gold loan interest rates depend on the LTV (Loan To Value) ratio.
  • If LTV is below 60%, then the normal interest rate would be charged, i.e., 12% to 18%.
  • The maximum loan provided by the banks is 75% of the value of the gold. In the case of NBFCs, it is 95%.
  • Gold loans are mostly taken to compensate for your short term requirements.
  • The average duration of loan repayment is 90 to 100 days.
  • Gold loan disbursal time: a loan is disbursed within one hour.
  • Jewellery, embedded with stones, valued only for the pure gold element.
  • No prepayment charges. 
  • A credit score is not required for gold loan approval.

Gold Loan Interest Rates: For Different Banks

Gold loans are mainly taken to meet short term requirements like funding a wedding, children’s education, etc. Banks pledge gold to provide a loan, which amounts to Rs.1500 TO Rs.1.5 crore. The gold loan interest rate differ from bank to bank, these are the current rates which are followed by different banks:


Banks Processing FeesInterest Rates (%)Maximum Duration (months)
PNB0.70% of total loan + taxes.10.0512
Canara Bank1% of the total loan, max Rs.5000 & min Rs.1000 per loan.1212
Yes Bank0.75% of the loan. Min Rs.500.11.2536
Federal BankNil11.7512
Andhra BankNil10.7012
SBI0.50% of the total loan, min Rs.500.10.5536
HDFC Bank1.50% to Nil10.5024
IndusInd BankUp to 1% of the loan, min Rs.75011.1512
ICICI Bank1% of the loan.10.0012
Muthoot Gold Loan0.25% to 1% of the total loan.12.0036
Axis Bank0.25% to 1% of the loan.10.4924
Manappuram Gold LoanRs.10 (at the time of settlement)12.0012
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Gold Loan Amount Decided: Per Gram Of Gold

Bank provides you a loan against gold by weighing the gold that you have pledged. The amount of gold loan decided as per the value per gram of the gold; this amount per gram varies from bank to bank:

Name of the BanksLoan Amount: Per Gram Of Gold
HDFC BankRs.2,097
ICICI BankRs.1914
Manappuram FinanceRs.1,890
Axis BankRs.2,166


                                 Eligibility Criteria For Gold Loan

Employment record and income statementFor a gold loan application, the bank does not ask your employment type or status, that is why sanctioning this loan is much easier. Bank asks you to submit KYC documents such as Aadharr card, Address proof, and Identity proof to apply for this loan.
Age LimitMinimum age – 21years (some banks require 23 as a minimum age) and Maximum age – 65 years. 
Employment statusThis loan can be availed by salaried, self-employed, and businessman. Apart from them, it can also be availed by senior citizens and housewives, who were not eligible for most of the loans as the lack of income statement. This feature makes the gold loan more accessible to all groups of people.   
CIBIL scoreCIBIL score is not checked for providing a gold loan. But your repayment of the gold loan can play a vital role in building up your CIBIL score.
Loan amountDepending on a bank the loan amount ranges between Rs.1000 to Rs.1.5 crore. Higher your loan amount lower will be your interest rate.
Gold QualityThe quality of a gold checked, ranges between 18 to 24 carats. 
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Schemes covered under the Gold loan

Gold loans are mostly for meeting short term expenses. Considering the various purposes of people, the bank has categorized the gold loan

These are the various types of gold loans offered by the banks:

Bullet Repayment

People who want to be freed from the responsibility of paying a loan on a monthly basis or yearly basis can avail this option. Here you can pay the principal amount in one shot at the end of the tenure. This option is commonly availed for a shorter duration, like jewel loans (less than six months). The total loan amount is paid at the end of the loan duration. You need to pay only interest monthly, i.e., on an EMI basis.

Agricultural Gold Loans

Under this scheme, loans are provided to farmers for meeting crop-related expenses. Evidence of farmland etc. is required for availing this loan. Loans under this scheme are granted for a maximum of three years.

Overdraft scheme

This scheme is beneficial for fulfilling the short term financial needs of self-employed & businessman, who can anytime feel the need for funds. You can withdraw your funds as per your requirement and also payback within time.

Non-Agricultural Gold Loans

This loan covers all the individuals like housewives, salaried, businessmen, etc. people from any category can apply for this loan. No need to have a loan repayment track record or salary statement etc. 

EMI scheme

This scheme is good for the people having a gold loan for a more extended period. Under this scheme, you can pay back the money in several instalments. Lowest EMI for Rs.1 lakh is Rs.2560 for the interest rate of 10.50%. 


People can go through the data mentioned above and opt for the bank that suits their requirements

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