Lowest Gold Loan Interest Rates

When gold is pledged as collateral and a loan is secured against it, it is referred to as a gold loan. Various banks and NCFCs offer easy gold loans for their customers.

If you are searching for the ‘lowest gold loan interest rate in which bank’, you need to note that there are multiple factors that affect the loan amount as well as the interest rate you can get. A bank-appointed appraiser examines the gold for uniformity and quantity. 

The interest rate is influenced by the MCLR (Marginal Cost of Fund Based Lending Rate) or RRLLR (Repo Rate Linked Lending Rate). Banks that offer gold loans secured by the RRLLR are significantly quicker to notify borrowers when the RBI lowers the repo rate.

Which Bank has Lowest Interest Rate on Gold Loans in 2024?

This section will compare the interest rates, processing fees, and the loan amount offered by various banks and NBFCs in India - 

Name of the Bank / NBFC Rate of interest (p.a) Processing fee Loan amount (in Rs.)

State Bank of India


0.50% of the loan amount, minimum Rs.500 + applicable GST

Rs.50,000 to Rs.50 Lakh


8.50% - 17.45%

1.00% of the disbursal amount (inclusive of applicable taxes)

Rs.25,000 onwards (Rs.10,000 onwards in rural branches)

Canara Bank


0.25% of the loan amount (Rs.250 to Rs.2,500)

Rs.5,000 to Rs.35 Lakh

Axis Bank


From Rs.300 per case to 0.50% of the loan amount

Rs.25,001 to Rs.40 Lakh

Kotak Mahindra Bank

9.00% - 24.00%

Up to 2.00% of the loan amount + GST

Rs.20,000 to Rs.1.5 Crore



1.00% of the loan amount

Rs.10,000 to Rs.1 Crore

IndusInd Bank

10.00% - 16.00%

Up to 1.00% of the loan amount

Up to Rs.20 Lakh

Punjab National Bank


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

Rs.25,000 to Rs.25 Lakh

Bank of Maharashtra


No processing fee for loans up to Rs.10 Lakh.
For higher loans, charges range from Rs.1,500 to Rs.2,000

Rs.20,000 to Rs.25 Lakh

Bank of Baroda


No processing fee for loans up to Rs.3 Lakh.
For higher loans, applicable charges + GST

Up to Rs.50 Lakh

Federal Bank

8.99% onwards

No processing fee for loans up to Rs.25,000.
For higher loans, 1.00% of the loan amount (minimum Rs.1,000).

Rs.1,000/- to Rs.150 Lakh

Muthoot Finance

12%-22%, depending on the scheme 

0.25% - 1.00% of the loan amount

Rs.1,500 onwards, depending on the scheme

Mannapuram Finance

Please contact the NBFC for more details.

Please contact the NBFC for more details.

Rs.1,000 onwards, depending on the scheme

Note: Rates mentioned as of 1st April 2024 and can be revised by the bank or NBFC without any notice. Please check with the bank or NBFC before applying for a loan.

Benefits of Taking a Gold Loan

Gold loans are a great way to put idle jewelry to good use to fund your financial requirements. Here are some benefits of applying for a gold loan -

Factors Affecting Interest Rates and Other Charges

While looking for the lowest gold loan interest rates, you should also notice that gold loans incur other charges. Like all other loans, lenders charge a processing fee for gold loans as well. Apart from this, gold loans may have valuation charges.

Let us look at the factors that affect the interest rates on gold loans -

Who Can Take a Gold Loan?

After learning about the ‘lowest gold loan interest rate in which bank’, are you curious who can avail of a gold loan?

The eligibility criteria for a gold loan are similar to those of any other loan. Your credit score, age, income, etc. play a role in determining your loan amount and interest rate. The value and purity of the gold also play a major role.


In India, gold isn't just a metal; it's so much more. It has decorative value and is a popular investment and savings option for many people. Apart from purchasing gold for investment or savings, people may choose to use their gold for gold loans, which is fast gaining popularity.

There are multiple lenders in the market today offering gold loans. The perfect one to choose will solely depend on your requirements. Your collateral, repayment capacity, and urgency will be determining factors in choosing the right vendor for you.

In the meantime, if you are looking for a collateral-free loan, you can apply for a Moneyview personal loan. It is disbursed within 24 hours in most cases and requires minimum documentation. 

To apply, visit our website or download the Moneyview app!

Lowest Gold Loan Interest Rate - Related FAQs

The interest rate on a gold loan will depend on each case. But in general, the interest rates for gold loans at HDFC and SBI start at the lowest.

No, you cannot get an interest-free gold loan. Like other credit products, whenever you borrow money, you will be charged interest.

Muthoot Finance has many schemes available. The minimum amount that you can get from Muthoot Finance is Rs.1,500.

To get a gold loan, you need to pledge your gold jewelry or goods to the vendor. The money is disbursed to you as usual. Once you repay the money throughout your tenure, your gold will be given back to you.

Most banks or NBFCs that provide gold loans, give loans against just gold jewelry. Even in gold, it is easier to get a loan against 22K gold. However, some vendors even provide loans against 18K gold.

The repayment process starts immediately, with the borrower expected to pay EMIs once a month after the loan is approved. However, this process can vary based on the terms and conditions imposed by the lender.

The minimum and maximum amount of gold loan that you can get varies from vendor to vendor. Gold loans start from as low as Rs.1000, given by the Federal Bank and Mannapuram Finance.

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