Gold Loan interest rates 2026: Lowest Gold Loan Interest Rate in India
A gold loan is one of the fastest and most practical borrowing options in India, especially when you need funds without selling your jewellery. It works as a secured loan where you pledge gold ornaments or coins with a bank or NBFC and receive money based on the gold’s purity and value. Because the lender holds gold as security, approval is faster and the process is simpler compared to personal loans.
- Also Read: Live Gold Price Today
In 2026, Gold Loan interest rates in India generally range from 8.05% to 27% per annum, depending on the lender, repayment method, loan amount, gold quality, borrower profile, and tenure. Even though gold loans are secured, the Gold Loan interest rate in India is not the same for everyone. One borrower may get a single-digit rate, while another may face a much higher rate for the same loan amount.
This guide is written to help borrowers compare rates correctly, understand how lenders calculate interest, and choose the lowest Gold Loan interest rate in India with maximum transparency.
Key Highlights
Before getting into lender-wise interest rates, it’s important to understand what typically makes gold loans attractive and how rates vary in real situations. These highlights give you a quick snapshot of what’s happening in 2026.
- Major banks like SBI, Canara Bank, Union Bank, HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda offer competitive gold loan schemes starting around 8.75% to 9.30% per annum, depending on category and repayment plan.
- Loan amounts can range from ₹10,000 to ₹2 crore, depending on the bank, customer segment, and gold collateral value.
- Tenure options are usually 6 to 42 months, but many banks still keep standard tenure around 12 months for regular gold loan products.
- Processing fees usually remain low and may range from NIL to 2%, depending on loan size, scheme type, and repayment pattern.
- Borrowers applying under agricultural or MSME categories may get special interest rates and repayment flexibility.
- Gold loan interest rates are influenced by loan-to-value ratio (LTV), gold market price, repayment style, and sometimes even credit profile.
What is the Gold Loan Interest Rate?
The gold loan interest rate is the percentage a bank or financial institution charges on the loan amount you borrow against pledged gold. While the gold is kept securely by the lender, you repay the loan based on the agreed interest rate and repayment schedule. Since this loan is backed by collateral, lenders usually consider it lower risk than unsecured loans.
In India, Gold Loan interest rates are typically shown as annual rates (per annum), but the actual interest calculation happens monthly or daily depending on the lender’s policy. This is why two lenders offering “similar rates” might still have slightly different total payable amounts.
In 2026, the Gold Loan Interest Rate in India generally falls into these patterns:
- Banks usually offer lower starting rates compared to NBFCs
- NBFCs may offer faster disbursal and flexible repayment, but higher rate slabs
- Lower interest rates may apply only to specific ticket sizes or overdraft schemes
- Bullet repayment schemes may look cheaper monthly but can cost more overall if delayed
A smart borrower always checks effective cost, not just the advertised “starting from” interest rate.
How Gold Loan Interest Works in Real Life (Beyond the Advertised Rate)
Most borrowers focus only on one thing: “What is the interest rate?” But in real-life borrowing, gold loans can have different repayment models, and each affects the total interest burden differently. This is why understanding how gold loan interest actually works helps you choose the best option.
Here’s how gold loan interest typically behaves in practice:
- Interest is charged on the loan amount, not on the gold value itself
- Higher loan tenures increase total interest paid, even when the rate remains the same
- EMI repayment reduces principal, lowering interest burden over time
- Bullet repayment may cause higher total payout, because principal remains outstanding until closure
- Overdraft gold loans can be cost-efficient, because you pay interest only on the utilized amount
Expert insight: The lowest gold loan interest rate is only beneficial if you also choose the right repayment plan for your income flow.
Gold Loan Interest Rate Provided by Top Banks in India 2026
If you are looking for the lowest and most stable loan pricing, banks are often the first option to consider. In 2026, top public and private banks continue to offer gold loans with competitive interest rates, structured schemes, and wider accessibility through branches and online services.
However, a key point borrowers must understand is this:
- Most banks provide different rate slabs depending on tenure, borrower category, and scheme type. This means two customers at the same bank may get different rates.
Below is the complete table of top banks offering gold loans in 2026, including interest rates, tenure, fees, and loan limits.
Gold Loan Interest Rate Table 2026 (Top Banks in India)
| Bank | Interest Rate (p.a.) | Loan Tenure | Processing Fee | Limit |
| SBI | 8.75% onwards | Up to 36 months | 0.25% of the loan amount | ₹20,000 to ₹50 lakh |
| Canara Bank | 8.75% onwards | Up to 12 months | Up to ₹2,750 + GST | Up to ₹35 lakh |
| Union Bank of India | 9.10% to 9.35% | Up to 12 months | 0.50% of loan amount + GST | Up to ₹50 lakh |
| Indian Overseas Bank | 8.20% to 11.60% | Up to 12 months | Varies by loan amount | ₹25,000 to ₹50 lakh |
| PNB | 8.35% onwards | Up to 12 months | 0.30% of loan amount + GST | ₹25,000 to ₹25 lakh |
| Karnataka Bank | 10.03% to 10.48% | Up to 12 months | NIL | Up to ₹50 lakh |
| Bank of Baroda | 9.00% onwards | Up to 36 months | Applicable charges + GST | Up to ₹50 lakh |
| HDFC Bank | 9.30% to 17.86% | 6 to 42 months | Up to 1% of disbursal + taxes | ₹25,000 to ₹1 crore |
| Federal Bank | 9.99% onwards | Up to 12 months | NIL | ₹3,000 to ₹1.5 crore |
| Central Bank of India | 8.05% to 8.35% | Up to 12 months | 0.25% of loan amount + GST | ₹10,000 to ₹40 lakh |
| Bank of India | 8.60% to 8.75% | Up to 12 months | Up to ₹1,500 | ₹20,000 to ₹30 lakh |
| ICICI Bank | 9.15% to 16.75% | Up to 12 months | Up to 2% of the loan amount | Up to ₹2 crore |
| Axis Bank | 9.75% to 17.00% | 6 to 36 months | 0.5% of loan amount + GST | ₹25,001 to ₹40 lakh |
Borrower Tip: If your goal is the lowest Gold Loan Interest Rate in India, public sector banks often have more stable base pricing—especially for shorter tenure schemes.
Features of Gold Loan (2026 Benefits Explained)
Gold loans are preferred because they combine fast access to money with relatively lower risk for lenders and simpler eligibility for borrowers. In 2026, gold loans continue to remain one of the most accessible secured loan options for both salaried and self-employed borrowers.
Key features include:
- Secured borrowing with gold as collateral: Since gold is pledged, lenders can approve loans faster and with fewer strict income checks.
- Quick approval and fast disbursal: Many lenders disburse within hours after gold testing and document verification.
- Minimal documentation: Compared to business and personal loans, gold loans require fewer documents and almost no financial statements.
- Flexible repayment options: Borrowers can choose EMI, interest-only, bullet repayment, overdraft, or part-prepayment options as per lender.
- Short to medium loan tenure: Most lenders offer 3 months to 36 months depending on scheme type.
- Competitive rates compared to personal loans: Gold loan interest rates are typically lower due to security provided by the pledged gold.
- Pledged gold returned after repayment: Once you close the loan successfully, you get your gold back safely.
Eligibility for Gold Loan
Gold loan eligibility is usually simple, but lenders still require basic conditions to protect repayment discipline and ensure gold quality standards. In most banks and NBFCs, loan approval is primarily based on gold purity and pledged weight.
Common eligibility rules include:
- Applicant must be 18 years of age or above
- Gold jewellery or articles must be pledged as security
- Pledged gold should generally be 18 karat or above
- Basic KYC documentation is required
- Loan amount depends on gold valuation and lender policy
Note: Some agricultural gold loans may have scheme-based benefits and relaxed repayment structures, especially during crop cycles.
Documents Required to Apply for Gold Loan
Even though gold loans are quick, lenders still follow KYC and compliance standards. Proper documentation ensures faster processing and avoids rejections or delays.
Common documents required are:
- Gold loan application form (filled and signed)
- Passport-size photographs
- PAN card or Form 60
- Identity proof (Aadhaar, Voter ID, Passport, Driving Licence)
- Address proof (utility bill, passport, rent agreement, etc.)
- Age proof (if requested)
- Signature proof
- Any additional documents requested for specific schemes
Practical tip: Carry originals for verification to avoid repeat visits.
Gold Loan Processing Fee and Loan Appraiser Charges (2026 Cost Breakdown)
Interest rate is not the only cost of taking a gold loan. Borrowers should also evaluate processing fees, appraiser charges, renewal costs, and GST impact. These charges may look small but can reduce your net disbursed amount and increase effective borrowing cost.
SBI Gold Loan Charges
- ₹200 + GST for 3-month bullet repayment
- ₹300 + GST for 6-month bullet repayment
- 0.50% of loan amount (min ₹500, max ₹10,000 + GST) for 12-month bullet repayment
- 0.50% of loan amount (min ₹500 + GST) for EMI-based loan
Other Bank Charges (Summary)
- HDFC Bank: Up to 1% of disbursal amount + tax
- Axis Bank: ₹300 per case (fresh loan up to ₹3 lakh), 0.5% for renewal above ₹2 lakh
- Canara Bank: 0.50% for overdraft scheme, ₹2,750 for select large loans
- Bank of Baroda: Nil up to ₹3 lakh, charges apply above ₹3 lakh
- PNB: 0.30% + GST (or ₹500 + tax whichever higher)
- Central Bank of India: 0.50% (min ₹250, max ₹5,000)
Expert tip: Always ask for a “Total cost sheet” including penalty charges, interest calculation method, and foreclosure terms.
Factors Influencing Gold Loan interest rates in India
Before choosing a lender, it is important to understand how banks and NBFCs decide the interest rate they will offer you. Most lenders use a combination of borrower-related factors, loan-related factors, and market-related factors to decide your final pricing.
Here are the most important factors that influence Gold Loan interest rates in 2026:
Monthly Income and Repayment Capacity
Even though gold loans are secured, lenders still assess whether you can repay comfortably. A borrower with stable income is considered lower risk, which can help in getting a better interest slab.
In many cases, salaried individuals may get a lower rate compared to borrowers with irregular income, especially if they opt for EMI repayment. For business owners, lenders may check banking history and transaction behaviour instead of formal salary slips.
Gold Purity and Gold Value
Gold loan eligibility is directly linked to gold purity. Most lenders accept gold ornaments that are 18K or above, with the best valuation usually given for 22K jewellery.
Higher purity typically means higher collateral value, which can improve the lender’s comfort and sometimes lead to slightly better loan terms. However, the rate itself depends more on the scheme and lender category than purity alone.
Loan-to-Value (LTV) Ratio and RBI Rules
The RBI allows lenders to offer gold loans up to a maximum LTV (Loan-to-Value) ratio, generally up to 75% of the pledged gold’s value.
This means:
- If gold value is ₹1,00,000, maximum loan is usually ₹75,000
- If gold prices rise, your eligible loan amount increases
- If gold prices fall sharply, lenders may request top-up payments or early closure in rare cases
Higher LTV lending can sometimes come with higher interest because it increases lender risk. Lower LTV loans may get comparatively better interest slabs.
Principal Loan Amount
Loan amount directly influences your interest rate slab. Many lenders offer:
- Lower interest rates for smaller loans under specific schemes
- Higher rates for large loans depending on category
- Different pricing for overdraft-type loans vs standard gold loans
This is why two people pledging similar gold value may get different interest rates depending on how much they borrow.
Tenure of the Gold Loan
Shorter tenure gold loans often carry lower interest rates because lenders are exposed to lower risk. Longer tenure may come with slightly higher rates or additional charges.
In 2026, many lenders offer tenure ranges like:
- 3 months
- 6 months
- 12 months
- 24 months
- Up to 36 or 42 months (in some private banks)
Repayment Type (EMI vs Bullet vs Overdraft)
Repayment structure is one of the biggest influencers of total loan cost.
- EMI repayment reduces interest burden gradually
- Bullet repayment may increase interest because principal remains outstanding
- Overdraft repayment may reduce interest because you pay only on used amount
Borrowers should choose repayment type based on actual cashflow, not convenience.
External Benchmark Rates
Some lenders link gold loan rates to external benchmarks such as:
- RBI repo rate
- Internal benchmark lending rate (IBLR)
- Government bond yields
If benchmark rates rise, new borrowers may see rate increases, and some floating-rate borrowers may experience changes.
Credit Score (CIBIL Score)
Gold loans do not require a high credit score for approval in most cases, since gold is collateral. However, credit score can still influence:
- Interest rate offered
- Loan processing smoothness
- Approval under premium schemes
- Eligibility for top-up loans or renewals
Borrowers with strong repayment history often receive more favourable terms.
Gold Loan Interest Rate Calculator (Why It Matters)
A gold loan calculator is one of the most useful tools for borrowers planning to take a gold loan in 2026. While lenders advertise interest rates, the calculator helps you estimate repayment burden realistically.
A gold loan calculator typically allows you to calculate:
- Approximate eligible loan amount based on gold weight and purity
- Expected EMI based on interest rate and tenure
- Total interest payable during the loan
- Total repayment amount including principal + interest
A calculator becomes especially useful when comparing different lenders because one bank may offer a slightly higher rate but lower processing charges or better repayment flexibility.
A borrower who checks calculations before applying usually avoids repayment stress later.
How to Calculate Gold Loan Interest Rate? (EMI Formula Explained)
Understanding the formula helps you verify whether the lender’s EMI schedule is correct and whether the loan is affordable.
Gold Loan EMI Formula
The standard EMI formula used in most loan types is:
- P × R × (1+R)^N / [(1+R)^N − 1]
Where:
- P = Principal loan amount
- R = Monthly interest rate (annual rate divided by 12)
- N = Loan tenure in months
This formula calculates the EMI amount when the borrower chooses regular monthly EMI repayments.
Gold Loan EMI Calculation Example (Easy to Understand)
Let’s break it down with a simple example, similar to what many banks use.
Example: ₹1,00,000 Gold Loan at 7.2% Interest for 3 Years
Assume:
- Principal (P) = ₹1,00,000
- Annual interest = 7.2%
- Monthly interest (R) = 7.2/12 = 0.6% = 0.006
- Tenure (N) = 36 months
Calculation:
Amount payable =1,00,000 × 0.006 × (1 + 0.006)^36 / [(1 + 0.006)^36 − 1]
Total payable comes around ₹1,11,487 (approx.)
This shows even a low interest rate increases total repayment over time, which is why tenure matters.
How to Apply for a Gold Loan?
Applying for a gold loan has become much easier in India. In 2026, borrowers can apply online in many banks and NBFCs, or visit branches for instant processing.
Before applying, always shortlist lenders offering:
- Competitive Gold Loan interest rates
- Flexible repayment structures
- Transparent deductions and fees
- Good customer support
- Safe gold storage practices
How to Apply for a Gold Loan Online
Online applications are convenient for borrowers who want to start the process quickly. Many banks allow digital form submissions, appointment booking, or loan eligibility estimation online.
Step-by-step online process:
- Visit the official website of your preferred lender
- Locate the “Gold Loan” section under loans
- Click “Apply Now” or “Get Started”
- Fill in personal details and loan requirements
- Submit the form after verification
- Schedule branch visit for gold evaluation (if required)
- Complete KYC and gold appraisal
- Receive loan approval and disbursal
Even when applying online, physical gold verification is typically mandatory before disbursement.
How to Apply for a Gold Loan Offline
Offline gold loan application is still very popular because it offers immediate face-to-face assistance. Many borrowers prefer branch visits because the gold is evaluated and loan is approved quickly.
Step-by-step offline process:
- Visit the nearest branch of your chosen lender
- Carry gold items and required KYC documents
- Request gold loan application form
- Submit form with details and documents
- Gold is evaluated by an appraiser
- Loan amount is sanctioned based on LTV rules
- Funds are disbursed instantly via account transfer
Offline processing is usually faster for borrowers who have complete documents ready.
How to Close a Gold Loan (Repayment Methods Explained)
Closing a gold loan properly is extremely important, because delayed closure can lead to additional interest, penalties, and in worst cases auction risk. In 2026, lenders typically provide four repayment methods to close a gold loan.
Pay Interest as EMI and Principal at the End
This method is common in some gold loan schemes where borrowers pay only interest monthly, and repay the principal in one final payment.
Best for:
- People expecting future income inflow
- Business owners with seasonal cashflow
- Borrowers avoiding high EMI burden
Risk:
- Principal remains constant, so interest continues full term.
Pay Regular EMIs (Principal + Interest)
This is the most structured and safe repayment method. You pay a fixed monthly EMI that includes both principal and interest, gradually reducing loan balance.
Best for:
- Salaried individuals
- Borrowers with stable monthly cashflow
- People who want predictable repayment
Benefit:
- Reduces interest burden compared to bullet repayment.
Bullet Repayment at the End
In this method, borrowers pay the full principal and interest in one lump sum at the end of the tenure.
Best for:
- Short-term borrowers
- People with expected lump sum income
- Borrowers wanting maximum flexibility
Risk:
- Dangerous if you fail to arrange money before due date.
Partial Payments or Foreclosure
Borrowers can pay part of the principal early or foreclose the loan fully before the tenure ends.
Best for:
- Borrowers who receive bonuses or sudden funds
- People aiming to reduce interest cost
- Financially disciplined borrowers
Benefit:
- Saves interest and returns pledged gold sooner.
Fixed vs Floating Gold Loan interest rates (Which One is Better in 2026?)
Many borrowers don’t realise that gold loans can be offered at fixed or floating rates depending on the lender and scheme. Choosing the wrong rate type can impact your monthly repayment planning.
Fixed Interest Rate Gold Loan
A fixed-rate gold loan means your interest rate stays the same during the tenure. Your repayment schedule becomes predictable, which is ideal for borrowers who want certainty.
Why fixed rate is beneficial:
- Predictable interest cost throughout the loan
- Easier to plan repayment without surprises
- Best for short-tenure gold loans (3 to 12 months)
- Suitable for salaried borrowers with fixed monthly budgets
When fixed rate may not be ideal:
- If market rates fall, you may not benefit
- Fixed-rate schemes sometimes have slightly higher starting rates
Floating Interest Rate Gold Loan
Floating rate gold loans are linked to external benchmarks such as repo rates or internal benchmark rates. If benchmarks change, your interest rate can change too.
Why floating rate can help:
- Rate may reduce when benchmark rates fall
- Useful for longer tenures (12+ months)
- Potential savings for long-duration borrowers
Risks of floating rate:
- EMI or interest payable may increase unexpectedly
- Repayment planning becomes less predictable
- Best only when borrower can handle changes
Expert recommendation for 2026: For most borrowers, fixed-rate gold loans are safer because gold loans are typically short-term and meant for quick funding.
Loan-to-Value (LTV) Ratio and How It Affects Gold Loan Interest Rate in India
LTV is one of the biggest factors in deciding your loan eligibility and sometimes also your final interest rate. RBI rules allow lenders to provide gold loans up to a maximum LTV ratio.
What LTV Means
Loan-to-Value (LTV) ratio represents the percentage of your gold value that the lender is willing to provide as a loan.
Example:
- If your gold jewellery value is ₹2,00,000
- RBI maximum LTV is 75%
- Maximum loan amount you can get = ₹1,50,000
Why LTV Impacts Borrowers
Higher LTV gives you a higher loan amount but increases the lender’s risk. Some lenders may charge a slightly higher interest rate for higher LTV slabs.
How LTV affects you practically:
- Higher LTV = more funds but potentially higher cost
- Lower LTV = less loan but better repayment comfort
- Stronger gold purity increases valuation and possible eligibility
Smart borrower tip: Borrow only what you need. Taking maximum eligible loan is not always financially wise.
Gold Loan Limitations (What Borrowers Must Understand Before Applying)
Gold loans are quick and convenient, but they still come with practical limitations borrowers must understand before pledging jewellery. Many people focus only on approval speed and ignore repayment risks, tenure pressure, and auction consequences. Knowing limitations early helps you borrow responsibly and avoid costly financial mistakes.
- Short repayment tenure: Gold loans usually have shorter tenures than personal loans, which creates higher monthly pressure if you choose EMI repayment without stable income.
- Auction risk on default: If repayments are delayed beyond reminders, lenders may auction pledged gold to recover dues, causing permanent loss of jewellery value.
- Interest accumulates quickly: Interest costs rise rapidly when loans are renewed repeatedly or left open longer, reducing savings and increasing overall repayment burden.
- Lower valuation for mixed items: Jewellery with stones, impurities, or mixed metals may be valued lower, reducing eligible loan amounts compared to pure gold items.
- Not ideal for long borrowing: Gold loans are best for short-term needs, but long-term borrowing can become expensive due to repeated interest cycles.
- Penalty charges for delays: Even small payment delays may trigger penal interest and late fees, increasing total payable amount beyond initial estimates.
Hidden Charges to Watch Along With Gold Loan Interest Rates
Many borrowers compare only Gold Loan Interest Rates and forget additional charges that increase the final cost. Processing fees, appraisal charges, GST, and penalty costs can reduce your net disbursal and inflate repayment. Reviewing all hidden costs helps you choose a truly affordable loan.
- Processing fees: Lenders may charge a percentage of the loan amount or a fixed fee, which increases the effective cost of borrowing immediately.
- GST on charges: GST is often applied on processing, renewal, or service fees, adding extra cost even when interest rates look affordable.
- Gold appraisal fees: Some lenders charge evaluation or appraiser fees for purity testing and valuation, reducing your net amount received.
- Foreclosure or closure charges: Certain schemes may include charges for early closure, which reduces savings even when you repay before tenure completion.
- Loan renewal fees: Renewing or extending the gold loan tenure may include renewal charges, increasing total borrowing cost over time.
- Late payment penalties: Missed interest or EMI payments can trigger penal interest rates and additional fees, making repayment significantly more expensive.
Bank vs NBFC Gold Loan (Who Offers Lower Gold Loan interest rates in 2026?)
The biggest confusion for borrowers is whether to choose a bank or an NBFC. Both are regulated, but they differ in rate structure, speed, and flexibility.
Banks (Public + Private)
Banks usually provide better stability, structured repayment options, and lower interest slabs for eligible borrowers. They are ideal for people who prefer predictable repayment terms, transparent documentation, and long-tenure comfort. Public sector banks are often preferred for the lowest Gold Loan Interest Rate in India, especially for smaller or medium loan needs.
Best for:
- Borrowers who want lowest interest rates
- People with stable income and KYC readiness
- Medium-to-high loan values
- Longer tenure loans like 24–36 months
Why banks may be slower:
- Branch-based verification
- More paperwork consistency checks
- Limited flexibility in some schemes
NBFCs
NBFCs are preferred for speed, convenience, and flexible schemes. They often approve loans quickly and may be easier for borrowers needing urgent funds or non-standard gold items. However, the Gold Loan Interest Rate in India through NBFCs may be higher in many cases, especially for short tenure or special repayment schemes.
Best for:
- Same-day urgent funds
- Smaller loans with quick disbursal needs
- Borrowers wanting flexible repayment structures
- Customers with limited banking relationship
Why NBFCs can be costlier:
- Higher upper interest range
- More scheme-based pricing
- Shorter tenure plans with higher effective cost
Which is Better in 2026?
If your priority is the lowest interest and long-term stability, banks generally work better. If your priority is fast processing and flexible repayment, NBFCs may be more suitable. The best decision is made after comparing total costs, not only interest rates.
How to Get the Lowest Gold Loan Interest Rate in India (2026 Smart Tips)
Getting the lowest gold loan rate requires smart planning, not just comparing advertisements. Borrowers who choose correct tenure, repayment type, and lender category often save significantly. These practical tips help secure better terms, reduce interest burden, and maintain full control over repayment.
- Choose EMI repayment: EMI repayment reduces principal gradually, lowering total interest cost compared to bullet repayment where full principal remains outstanding throughout tenure.
- Borrow only required amount: Borrowing more than necessary increases interest burden and repayment stress, so choose a loan amount aligned strictly with your financial need.
- Prefer public sector banks: Public banks often offer stable low-rate schemes for gold loans, especially for short tenure products and eligible borrower categories.
- Check special category schemes: Agricultural, MSME, women-focused, and loyal customer schemes may offer discounted rates, flexible repayment, and better overall loan terms.
- Avoid frequent renewals: Renewing gold loans repeatedly increases total interest paid and adds renewal fees, making the loan costlier than expected over time.
- Maintain timely repayments: On-time repayment improves lender trust, helps secure better renewal terms, and reduces penalty charges that raise effective loan cost.
Final Word
A gold loan can be one of the smartest secured borrowing tools when used correctly. However, borrowers should always compare Gold Loan interest rates in India, processing fees, and repayment plans before selecting any lender. The lowest Gold Loan Interest Rate in India is valuable only when the repayment method matches your financial situation. Always choose a transparent lender, borrow responsibly, and plan repayment in advance to protect your gold and financial stability.
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FAQs
Which bank has the lowest gold loan interest?
Banks with some of the lowest gold loan interest rates in India in 2026 include public sector lenders like Central Bank of India, SBI, and Canara Bank, depending on scheme type and borrower category. However, the final rate may vary based on your loan amount, repayment option, and tenure. The best approach is to compare effective cost including processing fees and repayment structure, not just the headline interest rate, to choose the cheapest overall borrowing option.
What is the interest of a Rs. 1 lakh gold loan?
The interest on a ₹1 lakh gold loan depends on the lender’s rate, repayment plan, and tenure. For example, at 9% per annum, annual interest would be around ₹9,000 if principal remains unchanged. EMI repayments reduce interest gradually because principal decreases. Bullet repayment may cost more overall because interest is charged on full principal until closure. Always use a gold loan calculator to estimate monthly and total repayment accurately for your chosen lender.
What is the highest amount for a gold loan?
The highest gold loan amount depends on the lender, the value of pledged gold, and the scheme type. Many banks offer gold loans up to ₹50 lakh for standard customers, while some private lenders may offer up to ₹1 crore or ₹2 crore for high-value borrowers. The final sanctioned amount is based on gold purity, weight, market gold rate, and LTV rules. Larger loans may require additional compliance checks and stronger documentation depending on lender policy.
What are the limitations of a gold loan?
Gold loans are fast and convenient, but they have limitations. They are usually short-term loans, meaning repayment pressure can be higher. If borrowers fail to repay, pledged gold can be auctioned after notices. Interest can accumulate quickly if loans are renewed repeatedly. Loan eligibility depends on gold purity, and jewellery with stones may be valued lower. Gold loans are best for short-term needs, not long-term debt planning, unless repayment capacity is strong and consistent.
Can we get a 100% gold loan?
No, borrowers generally cannot get a 100% gold loan in India because RBI guidelines restrict the maximum Loan-to-Value ratio. Most lenders can offer up to 75% of the pledged gold’s market value. This rule protects both borrower and lender from price fluctuations and over-borrowing risk. If someone offers 100% of gold value as a loan, it is advisable to verify legality and lender credibility because such offers may involve hidden terms or unsafe practices.
What is the maximum gold loan amount in SBI?
SBI gold loan limits typically range from ₹20,000 up to ₹50 lakh under many standard schemes. The final amount depends on gold valuation, purity, loan tenure, and RBI LTV limits. SBI may also provide different schemes for agriculture or special borrower categories, where terms can vary. Borrowers should confirm the exact applicable scheme, repayment options, and processing charges before applying. SBI’s structured schemes often make it a strong choice for stable pricing and repayment clarity.




