If you have gold jewelry and you need money, the gold loan can be a good option. This is a safe loan in which you can take a loan from a bank or NBFC by mortgaging your gold jewelery or coins. If you are planning to take a gold loan, then know here which bank is giving gold loan on how many interests.
What are the interest rates in 2025?
This year, the gold loan interest rates start from about 8% to 29% in India. The interest rate depends on which bank or NBFC you are taking loans. Also what is the purity of your gold. For how long the loan is taken. How is your ability to repay the loan.
Interest on gold loan
Government banks such as SBI and Central Bank of India are offering gold loans on the lowest interest. The rates of SBI range from 8.55% to 10.25%. Central bank rates are between 8.40% to 9.50%. At the same time, private sector bank HDFC bank rates go from 9.30% to 17.86%, and Axis Bank starts from 17%. The maximum interest rate of PNB is up to 9.25%. Indian Bank gives gold loan at the rate of 8.65% to 10.40%.
NBFC interest on gold loan
NBFC companies such as Muthoot Finance offer gold loans at the rate of 12% to 27% and arbitrary finance 14% to 29%.
Private bank’s interest on gold loan
Kotak Mahindra Bank rates ranges from 8% to 24%. IndusInd bank rates are between 9.60% to 16%. If you take a loan from Bandhan Bank, Federal Bank or IDBI Bank, then the rates are fixed according to the policies of the bank.
What are the benefits of taking gold loan?
The loan is received early and the documentation is also reduced.
You can get money immediately by mortgaging gold.
Loan can be found for a period from 3 months to 3 years.
There are many options for repaying interest – EMI, bullet repayment or partial payment etc.
Credit score does not affect much, but a good score can get less interest.
After repaying the loan, your gold gets back.
Documents required to take loan
Application form
Passport Size Photo
PAN Card or Form 60
Identity cards like Aadhaar, Voter ID, Driving License
Address proof like electricity bill, rental agreement, passport
Age certificate
Signature proof
Processing fees and appraisal charges
The processing fees of each bank or NBFC vary. For example, SBI is charged Rs 200 + GST on a 3 -month gold loan. Whereas, this fee for 12 months is 0.50% of the loan amount (at least 500). HDFC Bank has a maximum processing fee of up to 1%.
300 rupees are charged for taking a new loan in Axis Bank. And more money is charged 0.5%. This charge in PNB is 0.30% + GST or Rs 500. The fees in Kotak Mahindra and Federal Bank can range from 2% to 3% of the loan amount. Some banks such as Indian banks do not charge processing fees, while in IDBI and IndusInd Bank it is up to 1%.
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