Gold loan rates span roughly 9% at banks to the high teens at NBFCs, and the rate alone is not the cost. Per-gram lending value, processing fee, valuation charge and the repayment structure — bullet, EMI or interest-only — together decide what you actually pay.
| Typical gold loan rate range | 9 – 18 % p.a. |
|---|---|
| What it means | Banks at the lower end, gold loan NBFCs at the upper. |
as of 2026-08-15 · Lender rate cards · reported
What to know
The repayment structure changes the effective cost more than the headline rate does. A bullet-repayment gold loan, where principal and interest are settled at maturity, accrues interest on the full amount throughout. An interest-servicing structure costs less overall and, importantly, keeps you in contact with the lender — which is what prevents an auction happening while you assumed you had time.
Watch for tiered rates conditional on prompt payment. Several lenders advertise a low rate that applies only if every instalment is paid on time and steps up sharply otherwise. The advertised number is the best case; the contract sets out the other one.
Frequently asked questions
What is the gold rate per gram for a gold loan today?
Lenders set a per-gram lending value from the prevailing gold price, capped by the RBI loan-to-value limit. It moves daily. The table on this page carries the date it was captured — check it against the stamp before relying on it.
Is there a processing fee on a gold loan?
Usually a small one, sometimes a flat fee, plus a valuation charge — and 18% GST on both. On a small, short loan these fixed costs can matter more than the interest rate.
Can I repay a gold loan early?
Generally yes, and on short-tenure gold loans it is often free or nearly so. Check the foreclosure clause; NBFCs vary more than banks here.
Sources
- Reserve Bank of India — Directions on lending against gold collateral — loan-to-value and auction conduct (primary source)
- Lender published rate cards — Home, personal, vehicle and education loan rate cards — August 2026 — as of 2026-08-15
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