Which bank gives lowest gold loan rate in 2025?

Bank of Maharashtra Gold Loan offers the lowest gold loan interest rate starting at 8.30% p.a., followed closely by PNB Bank at 8.35% p.a.

How do I repay the gold loan I have availed?

You can choose to repay your gold loan either by cash, funds transfer, demand draft (DD), or cheque.

What are the eligibility criteria to avail a gold loan?

Indian citizens who are between the ages of 21 years and 60 years and are farmers, business individuals, salaried employees, and self-employed individuals can avail a gold loan. Certain lenders may provide gold loans to housewives and pensioners as well.

Will the interest rate on my gold loan vary with the kind of gold ornaments I pledge?

The interest rate on gold loans will vary depending on the kind and purity of the gold ornaments you pledge. The purity of gold will also affect the amount of loan sanctioned by the lender. To avail a gold loan, the gold ornaments should be in the karat range of 18k to 24k which will be verified by the jewelry appraiser in the bank. If the gold ornaments are studded with precious stones, the weight of the latter will be excluded from the calculations.

Will my credit score have any effect on the interest rate on my gold loan?

No, lenders will not take into account your credit score when you apply for a gold loan. If you are above 18 years of age and have documents to prove your ownership of the gold, you can apply for a gold loan.

I am a farmer. Can I get a discount on the gold loan interest rates?

Yes. Since agriculture falls under the priority sector, farmers who wish to avail gold loans to fund their agriculture infrastructure or to meet their other farming-related activities, can get a rebate on the interest rates. The rebate can range between 1% and 2% and hence, they can get gold loans at an interest rate as low as 8%.

Is there an option to make a part-payment of the gold loan?

Most lenders will offer the facility of part-prepayment but may charge a penalty. Ensure that you check for the charges before you decide to make a part-payment on your gold loan. However, to get your gold ornaments back, you will have to repay the entire outstanding amount. Having said that, there are some lenders who will be ready to release a part of your gold ornaments, in case you need it.

Gold Loan Interest Rate (2025) - Best Bank Schemes & Updated Charges

The interest rates on gold loan, availed by pledging gold, are relatively lower than other types of loans and range between 8.30% p.a. to 17.86% p.a. Banks and other financial institutions in India offer gold loans, the loan amount for which ranges from Rs.1500 to Rs.1.5 crore. The repayment tenure of these gold loans ranges between 3 months to 4 years.

Gold Loan Overview

Interest Rate	8.30% p.a. onwards
Loan Amount	Up to Rs.1.5 crore
Loan Tenure	3 months onwards
Processing Fee	0% - 2% of the loan amount + GST

Gold Loan Interest Rates Comparison 2025

Name of the Bank	Interest Rate	Loan Amount
Axis Bank Gold Loan	17% p.a. onwards	Rs.25,001 to Rs.4 lakh
HDFC Gold Loan	9.30% p.a. to 17.86% p.a	Rs.25,000 onwards
Canara Bank Gold Loan	8.90% p.a,	Rs.1,00 to Rs.35 lakh
Muthoot Gold Loan	Contact the company	Rs.1,500 onwards
SBI Gold Loan	Starts from 9.00% p.a. onwards	Rs.20,000 to Rs.50 lakh
Kotak Mahindra Gold Loan	Starts from 10.56% p.a.	Rs.20,000 to Rs.1.5 crore
IndusInd Bank Gold Loan	10.50% p.a. - 15.50% p.a.	Up to Rs.20 lakh
Manappuram Gold Loan	Contact the bank	Rs.3,000 to Rs.1.5 crore As per the requirement of the scheme
Bank of Maharashtra Gold Loan	8.30% p.a. onwards	Rs.20,000 to Rs.1 crore
PNB Gold Loan	Starts from 8.35% p.a.	Rs.25,000 to Rs.25 lakh
Bank of Baroda Gold Loan	9.00% p.a. onwards	Up to Rs.50 lakh

*Repayment tenure has been taken as 6 months taking the purity of gold as 22k.

Gold loans are usually taken for shorter periods to fulfill immediate upcoming requirements like paying for a child's education, planning a wedding, taking care of a medical emergency, etc.

FREE Credit Score - Check Now

Top Reasons to Choose Gold Loans

Some of the main benefits of availing a gold loan are mentioned below:

Loans can be availed at low interest rates since collateral is being provided.
Apart from gold jewellery, no other security or collateral will need to be provided.
The funds can be used for various purposes unlike a car loan or home loan.
Minimal documents will need to be submitted.
Your credit history need not be good to avail the loan.

How Gold Loan Features Impact Interest Rates

Some of the main features of a gold loan are mentioned below:

The loan may be provided within ten minutes.
The documentation process is simple, and most lenders will only request address proof and identity proof.
You can pay only the interest part initially and pay the principal amount when the loan matures.
Your credit history need not be good to opt for a gold loan. Several lenders provide you loans on pledging gold at attractive interest rates. The loan amount varies based on the weight of gold that you pledge. The loan amount per gram is a figure that varies across banks.

Factors Affecting Gold Loan Interest Rates

Price of gold in the marketIf the price of gold is high in the market, the value of the gold ornaments or coins being pledged by you will also be high. Lenders will offer you a lower interest rate in such cases since the risk associated is low and if ,for some reason, you are unable to make the equated monthly instalments (EMIs), the lender can easily recover the outstanding amount by selling/auctioning the gold ornaments.
Inflation: If the rate of inflation is high, the value of currency depreciates and hence, people tend to accumulate more gold. Gold acts as a hedge against inflationary conditions especially when they persist for a longer period. This, in turn, pushes the prices of gold higher and in such times if you wish to avail a gold loan, you may get lower interest rates from lenders.
Relationship with the bankMost lenders offer gold loans to their existing customers, though, in some cases, individuals who have no history with the bank can also avail gold loans. However, existing customers of banks/lending institutions are typically in a better position to negotiate for a lower interest rate.

Check Your Credit Score for Free

Be Money-Smart with our App

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score

FAQs on Gold Loan Interest Rates

Which bank gives lowest gold loan rate in 2025?
Bank of Maharashtra Gold Loan offers the lowest gold loan interest rate starting at 8.30% p.a., followed closely by PNB Bank at 8.35% p.a.
How do I repay the gold loan I have availed?
You can choose to repay your gold loan either by cash, funds transfer, demand draft (DD), or cheque.
What are the eligibility criteria to avail a gold loan?
Indian citizens who are between the ages of 21 years and 60 years and are farmers, business individuals, salaried employees, and self-employed individuals can avail a gold loan. Certain lenders may provide gold loans to housewives and pensioners as well.
Will the interest rate on my gold loan vary with the kind of gold ornaments I pledge?
The interest rate on gold loans will vary depending on the kind and purity of the gold ornaments you pledge. The purity of gold will also affect the amount of loan sanctioned by the lender. To avail a gold loan, the gold ornaments should be in the karat range of 18k to 24k which will be verified by the jewelry appraiser in the bank. If the gold ornaments are studded with precious stones, the weight of the latter will be excluded from the calculations.
Will my credit score have any effect on the interest rate on my gold loan?
No, lenders will not take into account your credit score when you apply for a gold loan. If you are above 18 years of age and have documents to prove your ownership of the gold, you can apply for a gold loan.
I am a farmer. Can I get a discount on the gold loan interest rates?
Yes. Since agriculture falls under the priority sector, farmers who wish to avail gold loans to fund their agriculture infrastructure or to meet their other farming-related activities, can get a rebate on the interest rates. The rebate can range between 1% and 2% and hence, they can get gold loans at an interest rate as low as 8%.
Is there an option to make a part-payment of the gold loan?
Most lenders will offer the facility of part-prepayment but may charge a penalty. Ensure that you check for the charges before you decide to make a part-payment on your gold loan. However, to get your gold ornaments back, you will have to repay the entire outstanding amount. Having said that, there are some lenders who will be ready to release a part of your gold ornaments, in case you need it.

Important Personal Loan Pages

Personal Loan Eligibility by Banks

Personal Loan Interest Rates by Bank

Personal Loan EMI Calculator by Bank

Personal Loan Customer Care by Bank

Personal Loan Status Track by Bank

Disclaimer

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.