Gold loans have become one of the fastest-growing and most preferred credit products in India. With minimal documentation, quick disbursals, and lower interest rates than unsecured loans, gold loans are an attractive option for those needing immediate funds.
As gold prices continue to rise, leveraging gold for loans can unlock liquidity without selling the asset. This article covers gold loan interest rates, comparison of top banks, and essential factors to consider in 2025.
Higher gold prices increase the loan amount.
RBI allows banks to lend up to 75% of the gold’s value.
Shorter tenures generally attract lower interest rates.
Banks provide special rates during festive seasons or promotions.
EMI-based gold loans often have slightly higher rates than bullet repayment options.
These regulations aim to enhance transparency and protect borrowers from unfair practices.
Here’s a comparison of the gold loan interest rates, loan tenures, and features oered by the leading banks and NBFCs in India.
To help you make an informed decision, here's a detailed table comparing the gold loan interest rates, loan amounts, repayment options, processing fees, and LTV ratios oered by leading banks and NBFCs in India.
| Bank/NBFC | Interest Rate (p.a.) | Loan Amount | Repayment Options | Processing Fees | LTV Ratio |
|---|---|---|---|---|---|
| State Bank of India | 7.5% – 8.5% | ₹20,000 – ₹50 Lakh | EMI / Bullet Payment | 0.50% or ₹500 (Min.) | 75% |
| HDFC Bank | 8.0% – 9.5%8.75% onwards | ₹25,000 – ₹1 Crore | EMI / InterestOnly | 1% or ₹1,000 (Min.) | 75% |
| ICICI Bank | 7.2% – 8.8% | ₹10,000 – ₹1 Crore | Flexible Payment / EMI | ₹750 – ₹1,500 | 75% |
| Axis Bank | 8.25% – 9.5% | ₹25,000 – ₹50 Lakh | EMI / Bullet Payment | ₹500 or 1% | 75% |
| Punjab National Bank | 8.1% – 9.1% | ₹10,000 – ₹25 Lakh | EMI / InterestOnly | 0.75% | 75% |
| Bank of Baroda | 7.75% – 8.85% | ₹15,000 – ₹50 Lakh | Bullet / EMI Up to 20 years | 0.50% of Loan Amount | 75% |
| Canara Bank | 7.65% – 8.75% | ₹25,000 – ₹25 Lakh | Interest-Only | ₹750 Flat | 75% |
| Union Bank of India | 7.9% – 9.0% | ₹20,000 – ₹40 Lakh | Bullet / EMI | ₹500 or 1% | 75% |
| Muthoot Finance | 8.25% – 12% | ₹10,000 – ₹1.5 Crore | Bullet / Flexible | 1% | 75% |
| Manappuram Finance | 9.0% – 12.5% | ₹10,000 – ₹1 Crore | Bullet Payment | 1% or ₹500 | 75% |
This comparison allows borrowers to easily evaluate which bank or NBFC provides the most suitable gold loan options in terms of interest rates, loan amounts, and repayment exibility. Be sure to consider all factors, including processing fees and LTV ratios, when choosing the best t for your nancial needs.
Loan Amount = Gold Weight × Gold Price per gram × LTV%
To secure the best gold loan rates and terms:
Gold loans oer an ecient way to unlock the value of your gold assets without liquidating them. In 2025, with increased regulatory oversight and competitive oerings from banks, borrowers have multiple options to choose from.
Before applying, compare interest rates, processing fees, and repayment schemes to nd the most suitable lender. By following this guide and using Minemi’s comparison tools, you can secure the lowest gold loan interest rate with ease.
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