Gold Loan Interest Rate — Compare All Banks 2026

Gold Loan Interest Rates in India 2026 — Complete Guide

A gold loan is a secured loan where you pledge your gold jewellery, coins or bars as collateral and receive funds within minutes. Gold loans have become one of India's most popular short-term borrowing options because of instant disbursal, no income proof requirement, and low interest rates compared to personal loans.

How much loan can you get per gram of gold?

The RBI mandates a maximum Loan-to-Value (LTV) of 75% for gold loans. At today's 22K rate of ₹14,268/gram, the maximum loan you can get is ₹10,701/gram. Banks typically use the 30-day average price, so your actual loan amount may differ slightly from the calculator above.

How is gold loan interest calculated?

Interest is charged on the outstanding principal. Most lenders offer three modes:

• Monthly interest only: Pay only interest each month, repay the full principal at the end of the tenure. Lowest monthly outflow.
• EMI: Equal monthly instalments covering both principal and interest. Most predictable option.
• Overdraft / bullet: Pay everything — principal plus interest — at the end. Use this only for short-term needs (under 3 months).

Govt banks vs NBFCs — which should you choose?

Govt banks (SBI, PNB, BOI): Lowest interest rates (8.35%–11%), slower processing (1–3 days), strict documentation. Best for large amounts and longer tenure.

Private banks (HDFC, Kotak, Axis): Competitive rates (9%–15%), faster disbursal (same day), better branch network. Best for medium amounts.

NBFCs (Muthoot, Manappuram): Highest rates (12%–24%) but fastest disbursal (30 minutes to 1 hour), minimal documentation. Best for emergencies.

Documents required

• PAN card or Form 60
• Aadhaar card / Passport / Voter ID (any one)
• Passport-size photograph (2 copies)
• Address proof (if different from Aadhaar)
• No income proof required for most gold loan products

What happens if you don't repay?

If you default, the lender will issue a notice and give 30–90 days to repay. If not repaid, they can auction your gold. Any amount above the outstanding loan (after deducting charges) is returned to you. Your credit score may also be impacted.