Gold loans continue to be a popular financing option in India due to their quick processing, minimal documentation, and attractive interest rates. Whether you’re looking for short-term liquidity or leveraging your gold assets, finding the best interest rate is crucial.
Here’s a breakdown of the best gold loan interest rates offered by top banks and NBFCs in India as of March 2025.
Top Gold Loan Interest Rates – March 2025
| Bank/NBFC | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| UCO Bank | 8.50% | ₹250 – ₹5,000 |
| Indian Bank | 8.80% – 9.00% | 0.56% of the loan amount |
| Canara Bank | 9.00% | ₹500 – ₹5,000 |
| State Bank of India (SBI) | 9.00% | 0.50% + GST |
| Bank of Baroda | 9.15% | Based on loan scheme |
| ICICI Bank | 9.25% – 18.00% | Up to 2% of the loan amount |
| HDFC Bank | 9.30% – 17.86% | 1% of the loan amount |
| Axis Bank | 17.00% | 0.5% of the loan amount |
| IIFL Finance | Starting from 11.88% | Based on scheme |
🔹 Note: Interest rates and fees may change. Check with the lender for the latest terms.
Key Factors Affecting Gold Loan Interest Rates
- Loan Amount – Higher loan amounts may have different rates.
- Loan Tenure – Shorter tenures generally attract lower rates.
- Gold Purity – The higher the purity, the better the loan value and interest rate.
- Lender Policies – NBFCs may offer higher LTV (Loan-to-Value) but charge higher interest.
- Market Conditions – Changes in the gold market can influence loan terms.
How to Get the Best Gold Loan Deal?
✅ Compare Interest Rates – Check multiple banks & NBFCs before choosing.
✅ Look Beyond Interest Rates – Consider processing fees, foreclosure charges, and hidden costs.
✅ Check Loan-to-Value (LTV) Ratio – RBI allows up to 75% of gold’s market value as a loan.
✅ Evaluate Repayment Options – Opt for EMI, bullet payment, or overdraft based on your needs.
✅ Negotiate with Lenders – If you have a good financial track record, you may get better terms.
Final Thoughts
Gold loans are an excellent way to unlock the value of your gold for urgent financial needs. However, choosing the right lender with competitive interest rates and flexible repayment options is crucial. Always compare, analyze, and negotiate before availing of a gold loan.