A gold loan is a type of loan where you pledge your gold or gold ornaments as collateral to the lender. Various banks and NCFCs offer easy gold loans for their customers.
If you are looking for the lowest gold loan interest rate, you need to note that there are multiple factors that affect the interest rate as well as the loan amount.
A bank-appointed appraiser examines the gold for uniformity and quantity before the loan amount is approved. The interest rate is influenced by the MCLR (Marginal Cost of Funds 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.
The table below compares 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.) |
|---|---|---|---|
|
8.70% |
|
₹20,000 to ₹50 Lakh |
|
|
9.01% to 19.08% |
1% of the disbursal amount + applicable taxes |
₹25,000 onwards (₹10,000 onwards in rural branches) |
|
|
8.95% |
0.30% of the loan amount (₹250 to ₹3,000) |
₹5,000 to ₹35 Lakh |
|
|
17.00% |
|
₹50,001 to ₹40 Lakh |
|
|
9.00% - 24.00% |
Up to 2.00% of the loan amount + GST |
₹50,000 to ₹1.5 Crore |
|
|
9.00% - 16.00% |
Up to 2% of the loan amount |
₹2 Lakh to ₹3 Crore |
|
|
10.01% - 15.50% |
Up to 1.00% of the loan amount |
Up to ₹1 Crore |
|
|
8.60% - 9.00% |
0.30% of the loan amount + GST or ₹500 + GST, whichever is higher |
₹25,000 to ₹25 Lakh |
|
|
8.50% |
No processing fee for loans up to ₹10 Lakh. |
₹20,000 to ₹1 Crore |
|
|
9.00% |
No processing fee for loans up to ₹3 Lakh. |
Up to ₹25 Lakh |
|
|
8.50% - 22.90% |
0.39% of the loan amount (minimum of ₹500) |
₹3,000 to ₹1.5 Crore |
|
|
10.90% p.a. onwards |
0.25% - 1.00% of the loan amount |
₹1,500 onwards, depending on the scheme |
|
|
26.82% |
Please contact the NBFC for more details. |
₹1,000 onwards, depending on the scheme |
Note: Rates mentioned as of 4 September, 2026 and can be revised by the bank or NBFC without any notice. Please check with the bank or NBFC before applying for a loan.
Loan Amount
Min ₹10
Max ₹6,000,000
Rate of Interest
Min 6%
Max 36%
Loan Tenure
5
months
Min 3 months
Max 72 months
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 -
As the gold acts as collateral, the interest rates are on the lower side.
There is no limitation on what the funds can be used for.
The only security that you need to pledge will be your gold jewelry.
You don’t need a very high credit score to apply for a gold loan.
The documentation requirements are minimal.
Banks and NBFCs accept jewelry, gold coins, as well as other forms of gold as collateral.
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 -
The price of gold varies and it plays an important role in deciding the interest rate of a gold loan. When gold prices are high, you are more likely to get a lower interest rate.
Inflation leads to a drop in a currency’s value, which means people accumulate more gold. This, again, pushes the price of gold higher if it lasts for long. So, during inflation, you might be able to get gold loans at lower interest rates.
Your existing relationship with the bank or NBFC also plays a role in deciding the interest rates. You can negotiate for lower interest rates if you have an ongoing relationship with the lender.
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 are 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.
Need Quick Cash?
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.
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Disclaimer
The starting interest rate depends on factors such as credit history, financial obligations, specific lender's criteria and Terms and conditions. Moneyview is a digital lending platform; all loans are evaluated and disbursed by our lending partners, who are registered as Non-Banking Financial Companies or Banks with the Reserve Bank of India.
This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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