Gold Loan Interest Rates In India 2023

In a country like India, where gold is prized, a gold loan can be easily secured. 

Let’s take a look at the interest rates offered by popular gold loan providers in India as well as how to get a gold loan.

Gold Loan Interest Rates in India

A gold loan is a secured loan where the gold is pledged as a collateral.

The quantity and character of the gold in question determine the maximum loan amount that you can get. The objects are also examined by a bank-appointed appraiser for uniformity and quantity. Since this is a secured loan, the rate of interest is lower than other unsecured loans.

The interest rate provided to applicants 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.

Comparison of Gold Loan Interest Rates 2023

Name of the bank/NBFC

Rate of interest (p.a)

Processing fee

Loan amount (in Rs.)


8.55% onwards

Nil (Till 31 March, 2023)

Rs.20,000 to Rs.50 Lakh



1% of disbursal amount

Rs.10,000 onwards

Canara Bank

9.15% (women borrowers)
9.50%(other borrowers)

Applicable charges + GST

Rs.5,000 to Rs.35 Lakh

Axis Bank



Rs.25,001 to Rs.25 Lakh

Kotak Mahindra Bank


Up to 2% + GST

Rs.20,000 to Rs.1.5 Crore



1% of loan amount

Rs.50,000 to Rs.1 Crore

IndusInd Bank


1% of loan amount

Up to Rs.20 Lakh

Punjab National Bank


0.35% of loan amount + GST

Rs.25,000 to Rs.25 Lakh

Bank of Maharashtra


No processing fee for loans up to Rs. 3 Lakh. 
For higher loan, charges range from Rs.500 to Rs.2000

Rs.20,000 to Rs.25 Lakh

Bank of Baroda


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

Up to Rs.50 Lakh

Federal Bank

8.64% onwards

0.35% to 0.80%, based on scheme

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

Muthoot Gold Loan

9%-22%, depending on the scheme the number can vary

Applicable charges + GST

Rs.1,500 onwards, no upper limit

How to Take Gold Loan

Taking a gold loan in India is quite simple. All you need to do is -

Gold loan procedure will vary from one lender to another but most follow the steps given above.

Charges Associated with a Gold Loan

When you avail a loan, be it a personal, home, or gold loan, you need to pay a processing fee. It mostly is nominal and involves the charges for the administrative costs that are borne by the bank or NBFC while processing your loan.

Apart from this, when you apply for a gold loan, you may be required to pay for the valuation of gold that will be used as collateral by the lending institution. For example, HDFC Bank charges Rs.250 for loans up to Rs.1.5 Lakh and Rs.500 for loans exceeding Rs.1.5 Lakh as valuation costs.

If you want to foreclose your loan, you might have to bear the necessary foreclosure charges as per the guidelines of the vendor. Some banks or NBFCs might have hidden charges, thus you should confirm about all kinds of fees and charges before taking a loan.

Eligibility Criteria for a Gold Loan

The loan per gram of gold or the loan amount is calculated by the value of gold pledged (based on gold price), purity of gold, and the LTV applied by banks. All these factors determine gold loan eligibility. The loan amount will finally depend on the quantity of gold you promise and your vendor.

The other eligibility criteria for a gold loan is similar to any other loan. Your credit score, age, income, etc. will play a role in determining your loan amount and also your EMI.

Documents Required to Get a Gold Loan

The bank or NBFC will require you to present several documents in order to obtain a gold loan, such as -


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!

Best Bank for Gold Loan - Related FAQs

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. But 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 Federal Bank.

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