In 2026, gold loan rates per gram in India typically range from ₹4,000 to ₹5,500 for 22-carat gold, depending on the lender and current market prices. Most banks and NBFCs offer up to 75% of the gold’s market value as the loan amount, as per RBI guidelines. Interest rates for these loans start from around 8.05% p.a. And can go up to 27% p.a., influenced by factors like gold purity, loan tenure, and the borrower’s profile.
| Lender | Gold Loan Rate Per Gram (₹) | Interest Rate (p.a.) | LTV Ratio |
|---|---|---|---|
| Indian Bank | ₹4,000-₹5,500 (22-carat gold, as of 2026) | 8.50%-8.80% (as of 2026) | Up to 75% |
| SBI | Up to 75% of gold’s market value | Starting from 8.75% (as of January 2026) | Up to 75% |
| HDFC Bank | Calculated based on market value and purity | 9.00%-19.00% (Bank IRR, Q4-FY’25-26) | Up to 75% (RBI guideline) |
| ICICI Bank | Calculated based on market value and purity (18-24 carats) | Starting from 9.25% (as of 2026) | Up to 75% (RBI guideline) |
| Central Bank of India | Calculated based on market value and purity | 7.00%-9.15% (as of 2026) | Up to 75% (RBI guideline) |
| Muthoot Finance | Up to 75% of market price (e.g., ₹7,500 for ₹10,000/gram market rate) | Varies by scheme and tenure | Up to 75% |
| Manappuram Finance | Around ₹7,500 (for ₹10,000/gram market rate, 75% LTV) | Starting from 9.90% (as of 2026) | Up to 85% (including interest) |
| Federal Bank | Up to 75% of market value for 22-carat gold | Varies by scheme | Up to 75% |
| Axis Bank | Calculated based on market value and purity | Varies by scheme | Up to 75% (RBI guideline) |
| Shriram Finance | Calculated based on market value and purity (min 0.49 grams for ₹5,000 loan) | Starting from 10% (as of 2026) | Up to 75% (RBI guideline) |
| 5paisa | Calculated based on market value and purity (18-24 carats) | Varies by scheme | Up to 75% (RBI guideline) |
| Bajaj Finserv | Calculated based on market value and purity (18-22 carats) | Varies by scheme | Up to 75% (RBI guideline) |
The per-gram rate offered by lenders is directly tied to the prevailing market price of gold and the Loan-to-Value (LTV) ratio, which RBI caps at 75% for most loans, with some micro-loans up to ₹2.5 lakh potentially reaching 85% LTV (effective April 2026).
Gold Loan Interest Rates 2026
Gold loan interest rates in India typically range from 8.05% to 27% per annum as of 2026, varying across banks and NBFCs. These rates depend on factors like the loan amount, gold purity, and repayment tenure. Borrowers should compare offers from different lenders to secure the most favorable terms.
| Lender | Min. Interest Rate (p.a.) | Max. Interest Rate (p.a.) | Processing Fees |
|---|---|---|---|
| SBI | 8.25% (2026) | 8.75% (2026) | 0.50% of loan amount (plus GST) |
| HDFC Bank | 9.00% (2025-26 Q4) | 19.00% (2025-26 Q4) | Exempt for Micro and Small Enterprises up to ₹5 lakh (May 2026) |
| Manappuram Finance | 9.90% (2026) | Not specified | Not specified |
| Punjab National Bank (PNB) | 8.25% (2026) | 8.75% (2026) | Not specified |
| Axis Bank | Not specified | Not specified | Nominal charges (June 2026) |
| Central Bank of India | Not specified | Not specified | Waived up to September 30, 2026 (Central Bank Personal gold loan scheme) |
| Indian Bank | Not specified | Not specified | Jewel appraiser and processing charges applicable |
Most lenders also apply Goods and Services Tax (GST) on all charges and fees, as per applicable rates.
Factors Affecting Gold Loan Rates
Gold loan interest rates in India, ranging from 8.05% to 27% p.a. As of 2026, are influenced by several key factors. These include the purity and weight of the pledged gold, the loan-to-value (LTV) ratio offered by the lender, and the borrower’s credit profile. Understanding these elements helps secure a favourable gold loan.
- Gold Purity and Weight: The purity of gold, typically 18-24 karats, directly impacts the loan amount and interest rate. Higher purity gold (e.g., 22-carat) generally fetches a larger loan amount and potentially better rates. Lenders like Indian Bank offer ₹4,000 to ₹5,500 per gram for 22-carat gold, up to 75% of its market value.
- Loan-to-Value (LTV) Ratio: The RBI mandates a maximum LTV ratio of 75% for gold loans, meaning you can borrow up to 75% of your gold’s market value. For micro-loans up to ₹2.5 lakh, some lenders may offer an LTV of up to 85% as per RBI guidelines effective April 2026.
- Market Price of Gold: Daily fluctuations in gold prices directly affect the loan amount you can avail. When gold prices rise, the loan amount against the same quantity of gold increases, and vice-versa. Lenders use the current market rate to determine the per-gram value.
- Lender Type: Interest rates vary significantly between public sector banks, private banks, and Non-Banking Financial Companies (NBFCs). Public sector banks like SBI and Indian Bank typically offer rates starting from 8.75% p.a., while NBFCs like Manappuram Finance may start from 9.90% p.a. (as of 2026).
- Loan Tenure and Repayment Mode: Shorter loan tenures (e.g., 6 or 12 months) might have different rate structures compared to longer tenures (up to 36 months). Repayment options, such as bullet repayment or monthly EMIs, can also influence the overall interest charged.
- Borrower’s Credit Profile: While gold loans are secured, a strong CIBIL score (750+) can still help negotiate better terms or access specific schemes. Lenders assess the borrower’s repayment capacity and financial history.
- Processing Fees and Other Charges: Additional charges like processing fees, gold appraisal charges, and delayed payment penalties affect the total cost. SBI charges 0.50% of the loan amount as processing fee, while Indian Bank applies jewel appraiser and processing charges.
These factors collectively determine the final gold loan interest rate and the maximum loan amount per gram offered by lenders in India.
How to Calculate Gold Loan Amount
The gold loan amount you can receive depends primarily on the gold’s purity, its weight, and the prevailing market rate. Lenders typically offer up to 75% of the gold’s market value, as per RBI guidelines (as of 2026).
To calculate your potential gold loan, consider the following factors:
- Gold Purity: Lenders assess gold based on its purity, typically accepting 18 to 24-carat gold. Higher purity gold (e.g., 22-carat or 24-carat) fetches a higher loan amount per gram compared to 18-carat gold.
- Gold Weight: The total weight of the gold ornaments or coins you pledge directly impacts the loan amount. For example, pledging 10 grams of 22-carat gold will yield a higher loan than 5 grams.
- Market Price of Gold: The current market price of gold per gram on the day of application is . If the market price for 22-carat gold is ₹5,500 per gram (as of 2026), your loan amount will be calculated based on this rate.
- Loan-to-Value (LTV) Ratio: The RBI mandates a maximum LTV ratio of 75% for gold loans, meaning you can borrow up to 75% of your gold’s market value. For loans up to ₹2.5 lakh, some lenders may offer up to 85% LTV, effective April 1, 2026.
- Lender’s Per Gram Rate: Each bank or NBFC has its own internal per-gram rate, which is usually a percentage of the current market price. Indian Bank, for instance, offers ₹4,000 to ₹5,500 per gram for 22-carat gold, up to 75% of its market value (as of 2026).
- Example Calculation: If you pledge 20 grams of 22-carat gold with a market value of ₹5,500 per gram (total ₹1,10,000), and the lender offers a 75% LTV, your maximum loan amount would be ₹82,500.
Online gold loan calculators from banks like ICICI Bank and IIFL allow you to estimate your eligible loan amount by inputting gold weight, purity, and desired tenure.
Gold Loan Eligibility & Documents
Most Indian banks and NBFCs require gold loan applicants to be resident Indians aged 18 to 75 years, pledging 18-24 karat gold as collateral. Lenders verify gold purity and weight to determine the eligible loan amount, typically up to 75% of the gold’s market value.
- Applicant Age: Individuals must be between 18 and 85 years for most banks like ICICI Bank, while Bajaj Finserv sets the range at 21 to 80 years.
- Residency Status: Applicants must be resident Indian citizens to qualify for a gold loan from any bank or NBFC.
- Gold Purity: The pledged gold, usually jewellery or coins, must have a purity of 18-24 karats; 22-karat gold is commonly accepted.
- Gold Ownership: The gold offered as security must be owned by the applicant. Lenders verify the quantity and quality of the gold ornaments.
- Income Source: While not always a strict requirement, some lenders prefer applicants to have a sufficient income source for loan repayment.
- Eligible Applicants: Salaried individuals, self-employed persons, business owners, homemakers, and pensioners can all apply for gold loans.
- Required Documents: Standard KYC documents include identity proof (Aadhaar, PAN, Passport) and address proof (Aadhaar, Utility Bill).
- Application Process: For banks like SBI and ICICI Bank, applicants can walk into a branch with their gold jewellery for immediate assessment and disbursal.
Meeting these criteria ensures a smoother application process and faster disbursal of gold loan funds from lenders.
Gold Loan vs Personal Loan
Gold loans are secured loans, requiring gold as collateral, while personal loans are unsecured. As of 2026, gold loan interest rates typically range from 8.5% to 24% p.a., often lower than personal loan rates which start from 10% p.a. And can go higher.
| Parameter | Gold Loan | Personal Loan |
|---|---|---|
| Loan Type | Secured Loan (gold as collateral) | Unsecured Loan (no collateral) |
| Collateral Required | Gold jewellery or coins (18-24 karat purity) | None |
| Interest Rates (As of 2026) | 8.05% to 27% p.a. (banks & NBFCs), typically 8.5% to 24% p.a. | 10% to 24% p.a. Or more (based on credit profile) |
| Approval Speed | Faster approval, often instant disbursal | May take longer (2-7 business days) for processing and verification |
| Loan Amount | Up to 75%-85% of gold’s market value (RBI norms 2026); e.g., 100 grams of 22-karat gold can fetch approx. ₹6-6.5 lakh (March 2026) | ₹50,000 to ₹40 lakh (can be higher for strong profiles) |
| Eligibility Criteria | Indian citizen, 18-80 years, possession of 18-22 karat gold jewellery. Less dependent on CIBIL score. | Strong CIBIL score (750+), stable income, employment stability, debt-to-income ratio. |
| Credit Score Impact | Lower CIBIL score may still qualify due to collateral. | High CIBIL score is for approval and lower rates. |
| Repayment Tenure | Typically 6-36 months (some up to 4 years) | 12-60 months (up to 7 years with some lenders) |
| Processing Fees | 0.25% to 1% of loan amount, plus appraisal charges (e.g., SBI charges 0.50%) | 1% to 3% of loan amount, plus GST |
| Foreclosure Charges | Often lower or waived after a minimum period (e.g., HDFC Bank may charge 1% after 6 months) | Typically 2-5% of outstanding principal after 6-12 EMIs |
Gold loans offer quicker access to funds with less stringent credit checks due to the collateral, making them suitable for urgent needs. Personal loans provide flexibility without pledging assets but demand a strong financial history.
RBI Gold Loan Rules 2026
The Reserve Bank of India (RBI) sets guidelines for gold loans in India, impacting loan-to-value (LTV) ratios and other terms. As of April 2026, the general LTV CAP for gold loans is 75% of the gold’s market value. However, for micro-loans up to ₹2.5 lakh, the LTV can go up to 85%.
- Loan-to-Value (LTV) Ratio: The RBI mandates a maximum LTV of 75% for most gold loans, meaning lenders can offer up to 75% of the gold’s current market value. For loans up to ₹2.5 lakh, the LTV can be 85% (effective April 1, 2026).
- Gold Purity and Weight: Lenders typically accept gold with purity between 18 and 24 karats. The maximum aggregate weight of gold coins pledged by a borrower is capped at 50 grams, while gold ornaments can be up to 1 kilogram (125 sovereigns).
- Interest Rate Regulation: While RBI does not fix specific interest rates, IT ensures transparency and fair practices. Gold loan interest rates in India typically range from 8.05% to 27% p.a. In 2026, varying by lender and loan scheme.
- Repayment Terms: Gold loan tenures generally range from 3 months to 4 years. Lenders offer various repayment options, including bullet repayment (lump sum at maturity) or regular EMIs, depending on the scheme.
- Delayed Payment Charges: Lenders like HDFC Bank apply a delayed instalment payment charge of 18% per annum on overdue amounts, plus applicable government taxes (as of May 2026). Micro and Small Enterprises with Udyam Registration are exempt from processing fees for loans up to ₹5 lakh.
These RBI regulations ensure consumer protection and standardize gold loan practices across banks and NBFCs, influencing the gold loan per gram rate offered.
Gold Loan Application Process
Applying for a gold loan in 2026 involves a straightforward process, typically completed within a few hours at most banks and NBFCs. Lenders like ICICI Bank allow individuals aged 18 to 85 years to walk into a branch with their gold jewellery. The loan amount is determined by the gold’s purity and weight, along with the prevailing market rate.
- Prepare Gold Ornaments: Gather your gold jewellery or coins (18-24 karats purity) that you intend to pledge. RBI guidelines (2026) CAP individual gold ornament pledges at 1 kilogram and gold coins at 50 grams per customer.
- Visit Lender Branch: Walk into a branch of your chosen bank or NBFC, such as SBI, HDFC Bank, or Bajaj Finserv. Some lenders, like ICICI Bank, do not require prior appointments.
- Submit Application Form: Complete the gold loan application form provided by the lender. This form collects personal details and loan requirements.
- Gold Appraisal: The lender’s appraiser will assess the purity and weight of your gold ornaments. SBI, for instance, verifies the quantity and quality of gold as security.
- Document Verification: Submit required KYC documents, including identity proof (Aadhaar, PAN) and address proof (utility bills). Eligibility criteria typically include being a resident Indian aged 18-75 years.
- Loan Disbursal: Once the appraisal and document verification are complete, the loan amount is disbursed. Indian Bank, for example, targets disbursals by February 2026.
The entire process is designed for quick access to funds, with many lenders offering same-day disbursal upon successful verification.
Key Takeaways
- Gold loan interest rates in India for 2026 range from 8.05% to 27% p.a., varying by lender and gold purity.
- The maximum Loan-to-Value (LTV) ratio for gold loans is capped at 75% by RBI, though some micro-loans may offer up to 85%.
- Major banks like SBI and HDFC Bank offer starting rates around 8.75% to 9.00% p.a. As of Q4-FY’25-26.
Compare current gold loan rates and apply directly with your preferred bank or NBFC.
Frequently Asked Questions (FAQs)
What is the gold loan rate per gram in 2026?
As of May 2026, gold loan rates per gram in India typically range from ₹4,000 to ₹5,500 for 22-carat gold, depending on the lender and current market prices. Banks like Indian Bank offer around ₹4,000 to ₹5,500 per gram based on 22-carat purity. The loan amount is usually capped at 75% of the gold’s market value on the day of application.
Which banks offer gold loans in India in 2026?
Major Indian banks offering gold loans in 2026 include State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, and Indian Bank. , Non-Banking Financial Companies (NBFCs) like Muthoot Finance and Manappuram Finance are prominent gold loan providers. These lenders assess gold purity and weight against prevailing market rates.
What is the interest rate for gold loans in 2026?
Gold loan interest rates in India for 2026 generally start from around 9.90% p.a. For NBFCs like Manappuram Finance, while banks may offer competitive rates based on the scheme. For instance, HDFC Bank’s gold loan interest rates were available from 9.90% p.a. As of May 2026. Rates vary by lender, loan scheme, and borrower profile.
How is the gold loan amount per gram calculated?
The gold loan amount per gram is calculated based on the gold’s purity (e.g., 18-24 carat), its weight in grams, and the prevailing market price of gold on the application day. Lenders typically offer up to 75% of the gold’s market value, as seen with Muthoot Finance and Indian Bank. An online gold loan calculator can provide an instant estimate.
What factors affect gold loan interest rates?
Gold loan interest rates are influenced by the current market price of gold, the quantity and purity of gold pledged, the specific loan scheme (e.g., agricultural vs. Non-priority), and the borrower’s credit profile. Lenders also consider the Loan-to-Value (LTV) ratio, which is capped at 75% of the gold’s value. Higher purity and quantity can sometimes lead to better terms.
Can I get a gold loan for 1 gram of gold?
Yes, you can get a gold loan for 1 gram of gold, though the loan amount will be relatively small. Lenders like Muthoot Finance offer loans for quantities as low as 1 gram, providing up to 75% of its market value. The per-gram rate will be determined by the gold’s purity and the day’s market price.
What documents are required for a gold loan in India?
Typically, gold loan applications in India require identity proof (Aadhaar card, PAN card, Passport), address proof (utility bills, Aadhaar card), and recent passport-sized photographs. Some lenders may also ask for income proof, especially for larger loan amounts. The pledged gold ornaments are also physically verified for purity and weight.
Disclaimer: This article is general information, not financial advice. Interest rates, fees, and eligibility change frequently. Verify current details with the lender or regulator (RBI / SEBI) before deciding.