Gold Loan Interest Rates 2026 in India range from 8.05% to 27% p.a., depending on the lender, loan amount, and gold purity. As of June 2026, the average interest rate for most borrowers falls between 8.25% and 14% per annum. This secured loan option allows quick access to funds by pledging gold jewellery or coins, often with faster processing than unsecured loans.
| Parameter | Details |
|---|---|
| Overall Gold Loan Interest Rate Range | 8.05% to 27% p.a. (as of 2026) |
| Average Gold Loan Interest Rate | 8.25% to 14% p.a. (as of 2026, for most borrowers) |
| Lowest Starting Gold Loan Interest Rate | 8.05% p.a. (as of 2026) |
| Highest Gold Loan Interest Rate | 26%–27% p.a. (as of 2026, for higher risk profiles) |
| Loan Amount Range | ₹1,500 to ₹1.5 crore (as of June 2026) |
| Repayment Tenure Range | 3 months to 4 years (as of June 2026) |
| Loan-to-Value (LTV) Ratio (General) | Up to 70-75% of gold’s market value |
| Tiered LTV for Loans up to ₹2.5 lakh | Up to 85% (RBI framework, effective April 1, 2026) |
| Tiered LTV for Loans ₹2.5 lakh to ₹5 lakh | Up to 80% (RBI framework, effective April 1, 2026) |
| Tiered LTV for Loans above ₹5 lakh | Up to 75% (RBI framework, effective April 1, 2026) |
| Accepted Gold Purity for Collateral | 18 to 24 karat gold jewellery and coins (coins not exceeding 50 grams per borrower) |
| Prohibited Collateral | Gold bars, gold biscuits, gold ETFs, primary gold, 24-carat gold bars and biscuits |
| Valuation Method | Lower of (a) 30-day average closing price or (b) previous day’s closing price for specific purity, from IBJA or SEBI-regulated commodity exchange |
| Bullet Repayment Tenure CAP | 12 months (RBI mandate) |
| Gold Return Mandate Post-Repayment | Within 7 working days |
| Delayed Instalment Payment Charge (HDFC Bank) | 18% per annum along with applicable government taxes, on the overdue instalment amount (as of 2026) |
| Processing Fees (General) | Typically 0.25% to 1% of the loan amount; some schemes offer minimal or no fees |
| Processing Fees (SBI) | 0.25% of the loan amount plus applicable GST (as of 2026) |
| Pre-closure Charges (PNB) | ₹0 (as of 2026) |
| Appraiser Charges (Central Bank of India) | Waived up to September 30, 2026, for Personal Gold Loan scheme |
| Appraiser Charges (SBI) | Decided by SBI, borrower bears the cost (as of 2026) |
| Age Eligibility | Indian residents between 18 and 75 years (HDFC Bank); generally 21 to 60 years for most lenders |
| Credit Score Impact | Scores above 750 may receive interest discounts; technically possible to apply with zero credit score |
Key Gold Loan Parameters
The Reserve Bank of India’s tiered LTV framework, effective April 1, 2026, aims to enhance borrower protection and reduce systemic risk in the gold loan market. Borrowers can compare auto loan interest rates to understand the broader secured lending landscape.
Gold Loan Interest Rates: Bank vs NBFC
Gold loan interest rates in India range from 8.05% to 27% p.a. As of 2026, varying significantly between banks and NBFCs. Banks typically offer lower rates, often starting around 8.25% p.a., while NBFCs provide faster processing but may have higher rates, sometimes reaching 27% p.a. .
| Lender Type | Interest Rate Range (p.a.) | Key Feature |
|---|---|---|
| Public Sector Banks (e.g., SBI, PNB) | 8.25% – 9.95% (as of 2026) | Generally offer the lowest rates, stable pricing, longer processing times, EMI-based or bullet repayment options. |
| Private Sector Banks (e.g., HDFC Bank, ICICI Bank, Axis Bank) | 9.00% – 19.00% (HDFC Bank, Q4-FY’25-26) | Competitive rates, faster processing than public banks, flexible repayment, transparent appraisal. |
| NBFCs (e.g., Manappuram Finance, Shriram Finance, Muthoot Finance) | 9.90% – 27.00% (as of 2026) | Faster disbursal, ideal for urgent needs, more flexible repayment (e.g., bullet payments), broader rate ranges. |
| State Bank of India (SBI) | 8.35% – 9.95% (as of 2026) | Loan amounts up to ₹50 lakh, accepts 18-24 karat gold, processing fees 0.25% + GST. |
| HDFC Bank | 9.00% – 19.00% (as of Q4-FY’25-26) | Competitive rates, flexible repayment, online calculator, eligibility for Indian residents aged 18-75. |
| Punjab National Bank (PNB) | 8.50% p.a. (starting, as of 2026) | Offers competitive rates for gold jewellery, ornaments, or coins, zero pre-closure charges. |
| ICICI Bank | 9.25% – 19.75% (as of 2026) | Loan amounts up to ₹1 crore, walk-in application at branches, competitive rates. |
| Bank of India | 8.36% – 9.05% (as of 2026) | Offers competitive rates, transparent terms. |
| Indian Bank | ₹4,000 to ₹5,500 per gram (22-carat, as of 2026) | Jewel Loan scheme up to ₹50 lakhs, applicable jewel appraiser charges. |
| Manappuram Finance | Starting from 9.90% p.a. (May 2026) | Base rate starts from 24.00% p.a., known for quick processing. |
| Shriram Finance | Starts at 10% p.a. (as of 2026) | Offers competitive rates among NBFCs. |
| Muthoot Finance | Starting from 1% per month (as of 2026) | Popular NBFC for gold loans, offers various schemes. |
| Axis Bank | 9.75% p.a. (starting, as of June 2026) | Offers gold loans with competitive starting rates. |
Gold Loan Interest Rate Ranges by Lender Type
While banks generally offer lower interest rates, NBFCs often provide quicker disbursal and more flexible repayment options, making them suitable for urgent financial needs. Borrowers should compare the auto loan interest rates in India and other loan types to understand the broader credit landscape.
Top Gold Loan Interest Rates: June 2026
Gold loan interest rates in India start from about 8.25% p.a. As of June 2026, varying by lender, loan amount, and gold purity. Major banks typically offer rates between 8.75% and 9.30% p.a., while NBFCs may have higher starting rates.
| Lender | Starting Interest Rate (p.a.) | Max LTV | Tenure |
|---|---|---|---|
| Central Bank of India | 7.00% to 9.15% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Punjab National Bank (PNB) | 8.25%–8.75% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Bank of Maharashtra | 8.35% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| State Bank of India (SBI) | 8.75% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Indian Bank | 8.50% to 8.80% (as of April 21, 2026) | 75% of gold’s market value | Flexible (up to 36 months) |
| HDFC Bank | Starting at 8.75% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| ICICI Bank | 9.25% to 19.00% (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Axis Bank | 9.75% (starts at, as of June 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Bajaj Finance | 9.50% to 24% (as of May 2026) | Up to 75% (as per RBI norms) | Flexible (up to 24 months) |
| Shriram Finance | Starting at 10% p.a. (as of 2026) | Up to 75% (as per RBI norms) | Up to 36 months |
| Muthoot Finance | 12%–24% (as of 2026) | Up to 75% (as per RBI norms) | Up to 12 months |
| IIFL Finance | 11.88% to 24% (as of 2026) | Up to 75% of market value | Up to 12 months |
| Manappuram Finance | Starting from 9.90% (base rate 24.00%, as of May 2026) | Up to 75% (as per RBI norms) | Up to 12 months |
Starting Gold Loan Interest Rates by Lender
The tiered Loan-to-Value (LTV) ratio, effective April 1, 2026, allows up to 85% LTV for loans under ₹2.5 lakh, 80% for loans between ₹2.5 lakh and ₹5 lakh, and 75% for loans above ₹5 lakh, as per RBI guidelines. Borrowers can compare these rates and LTVs to find the most suitable option for their needs.
Factors Affecting Gold Loan Interest Rates
Gold loan interest rates in India, ranging from 8.05% to 27% p.a. As of 2026, are influenced by several key factors. Lenders assess these elements to determine the final rate offered to a borrower.
Understanding these factors helps borrowers secure the most favourable terms for their gold loan. The RBI’s tiered Loan-to-Value (LTV) framework, effective April 1, 2026, also plays a role in loan structuring.
- Loan-to-Value (LTV) Ratio: The RBI mandates a maximum LTV of 75% for gold loans, but a tiered structure applies from April 1, 2026. Loans up to ₹2.5 lakh can have an LTV of 85%, while those between ₹2.5 lakh and ₹5 lakh have an 80% LTV.
- Gold Purity and Weight: Lenders assess the purity (typically 18 to 24 karat) and net weight of the pledged gold. Higher purity and weight generally allow for a larger loan amount and potentially better rates.
- Lender Type: Public sector banks like SBI and PNB often offer lower starting rates, around 8.25%-8.75% p.a. As of 2026. NBFCs and fintech platforms may have higher rates, sometimes reaching 26%-27% p.a., but offer faster processing.
- Repayment Tenure and Type: Shorter tenures, such as 3-month bullet repayment options, can attract slightly lower rates (e.g., SBI offers around 8.65% for 3 months). EMI-based loans or longer tenures may have slightly higher rates.
- Borrower’s Credit Profile: While gold loans are secured, a strong CIBIL score (above 750) can still help borrowers negotiate better rates or qualify for special schemes. Some lenders offer interest rate rebates for regular interest payments.
- Market Gold Price: The daily market price of gold directly impacts the loan amount a borrower can receive. Lenders use the lower of the 30-day average or previous day’s closing price from IBJA for valuation.
- Processing Fees and Other Charges: Lenders may charge processing fees, typically 0.25% to 1% of the loan amount, plus GST. Some banks, like PNB, offer zero pre-closure charges, which can affect the overall cost.
- Relationship with Lender: Existing customers with a good banking history may receive preferential rates or quicker processing from their primary bank. For instance, HDFC Bank offers competitive rates and flexible options for its customers.
These factors collectively determine the interest rate and overall cost of a gold loan, making IT essential for borrowers to compare offers across different lenders in 2026.
RBI Gold Loan Rules 2026: LTV & Safety
The Reserve Bank of India (RBI) introduced a tiered Loan-to-Value (LTV) structure for gold loans, effective April 1, 2026. This framework aims to enhance borrower safety and reduce systemic risk in the gold loan market. IT also ensures transparent appraisal processes and standardized auction procedures for pledged gold.
- Tiered LTV Ratios: The RBI mandates different LTV caps based on the loan amount. For loans up to ₹2.5 lakh, the LTV is 85%.
- Mid-Range LTV: Loans between ₹2.5 lakh and ₹5 lakh are subject to an 80% LTV. This means a borrower can get up to ₹80,000 for ₹1 lakh worth of gold.
- Higher Loan LTV: For gold loans exceeding ₹5 lakh, the LTV is capped at 75%. This aligns with the earlier flat LTV rule for all gold loans.
- Permitted Collateral: Lenders can accept gold jewellery (18 to 24 karat) and gold coins, with an aggregate weight not exceeding 50 grams per borrower.
- Prohibited Collateral: Gold bars, gold biscuits, gold ETFs, and primary gold are not permitted as collateral for gold loans under RBI guidelines.
- Valuation Method: Gold valuation must use the lower of (a) the 30-day average closing price or (b) the previous day’s closing price for specific purity, sourced from IBJA or a SEBI-regulated commodity exchange.
- Bullet Repayment Tenure: Gold loans with bullet repayment options are capped at a maximum tenure of 12 months. Renewals are permitted only for standard-classified loans with accrued interest cleared.
This RBI framework, considered the most borrower-protective for gold loans in India, ensures greater transparency and stability in the sector. Borrowers should verify the latest interest rates and LTV ratios with their chosen lender as of 2026.
Gold Loan vs Personal Loan: Interest Comparison
Gold loans typically offer lower interest rates than personal loans, as they are secured by physical gold collateral. As of June 2026, gold loan rates start from about 8.05% p.a., while personal loan rates generally begin around 10% p.a. This difference reflects the reduced risk for lenders when gold is pledged.
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Loan Type | Secured Loan | Unsecured Loan |
| Interest Rates (as of June 2026) | 8.05% to 27% p.a. (general range); 8.55% p.a. Onwards (starting) | 10% to 24% p.a. Or more (general range); 12% to 36% p.a. (another source) |
| Approval Speed | Faster approval (due to collateral) | Slower (stricter eligibility) |
| Collateral Requirement | Gold jewellery or coins pledged as collateral | No collateral required |
| Credit Score Impact | Not a primary factor, lower credit score acceptable | Good credit history required for lower rates |
| Loan Amount (as of June 2026) | ₹1,500 to ₹1.5 crore (banks and financial institutions) | Higher amounts available |
| Repayment Tenure | 3 months to 4 years (banks and financial institutions); 7 days to 3 years (some lenders up to 5 years) | 1 to 5 years |
| Processing Fees | 0.25% to 1% of loan amount (typically low, some schemes offer minimal or no fees) | 0.50% to 2.5% of loan amount (varies by lender and profile) |
| Appraiser Charges | Applicable (e.g., Indian Bank); waived by Central Bank of India until Sep 30, 2026 | Not applicable |
| Pre-closure Charges | ₹0 (e.g., PNB); varies by lender | Typically 2% to 5% of outstanding principal |
| Risk to Borrower | Risk of losing gold if defaulted | No risk of losing assets like gold, property, or vehicle |
Gold Loan vs. Personal Loan Key Differences
While gold loans offer quicker access to funds and often lower rates, personal loans provide flexibility without pledging assets. Your choice depends on your immediate need for funds, access to gold, and credit profile.
How Gold Loan Interest is Calculated
Gold loan interest rates in India typically range from 8.05% to 27% per annum as of June 2026, depending on the lender and loan specifics. Lenders calculate interest based on several factors, including the benchmark rate and the borrower’s risk profile.
Understanding these components helps borrowers compare offers effectively and choose the lowest gold loan interest rate in India.
- Benchmark Rate: Most banks link gold loan interest to an internal benchmark like the MCLR (Marginal Cost of Funds-based Lending Rate). NBFCs often use their own prime lending rates.
- Loan-to-Value (LTV) Ratio: The RBI’s tiered LTV framework, effective April 1, 2026, influences rates. Loans up to ₹2.5 lakh can have an 85% LTV, while those above ₹5 lakh are capped at 75%.
- Gold Purity and Valuation: Interest rates consider the gold’s purity (typically 18 to 24 karat) and its market value. Valuation uses the lower of the 30-day average or previous day’s closing price from IBJA or SEBI-regulated exchanges.
- Repayment Structure: Loans with bullet repayment (principal and interest paid at maturity) often have different rates than EMI-based loans. SBI, for instance, offers rates starting from about 8.65% for 3-month bullet repayment, while EMI-based loans can go up to 9.95% per year (as of 2026).
- Borrower Profile: While gold loans are secured, a borrower’s credit history and repayment capacity can still influence the final interest rate. Some lenders offer rebates of 1% to 2% for regular interest payments.
The final interest rate is a combination of these factors, with banks generally offering more competitive rates than NBFCs for similar loan amounts and tenures.
Applying for a Gold Loan: Steps & Documents
Applying for a gold loan in 2026 involves a straightforward process, typically requiring minimal documentation due to the secured nature of the loan. Most lenders, including major banks like HDFC Bank and SBI, offer quick processing for eligible Indian residents aged 18 to 75 years.
To secure a gold loan, borrowers must follow these steps and prepare the necessary documents:
- Step 1: Gold Valuation and Eligibility Check. Visit a bank or NBFC branch with your gold jewellery or coins (18 to 24 karat purity). The lender’s authorized appraiser will assess the gold’s purity and weight to determine its market value. Concurrently, the lender will verify your age and residency (Indian resident, 18-75 years).
- Step 2: Loan Amount Calculation. Based on the gold’s valuation and the prevailing Loan-to-Value (LTV) ratio (up to 75% as per RBI norms, or higher for specific tiers as of April 1, 2026), the lender will calculate your eligible loan amount. For example, a loan up to ₹2.5 lakh may offer an 85% LTV.
- Step 3: Document Submission. Submit the required KYC documents, which typically include proof of identity (Aadhaar, PAN card) and proof of address. Some lenders like ICICI Bank allow you to walk into a branch with your jewellery for immediate processing.
- Step 4: Loan Agreement and Disbursal. Review the Key Fact Statement (KFS) and the loan agreement, ensuring all charges and interest components are clear. Once you accept the terms, the loan amount is disbursed, often within the same day.
- Step 5: Repayment. Choose a repayment option, such as EMI-based or bullet repayment (capped at 12 months for bullet repayment loans). Regular repayment can lead to interest rate rebates of 1% to 2% off the original rate.
- Step 6: Gold Retrieval. Upon full repayment of the principal and accrued interest, the pledged gold is returned to you within 7 working days, as mandated by RBI guidelines.
The application process for a gold loan is designed for speed and convenience, making IT a popular choice for urgent financial needs. Always compare gold loan interest rates and terms across lenders before applying.
Key Takeaways
- Gold loan interest rates in India for 2026 generally range from 8.05% to 27% p.a., influenced by the lender, loan amount, and gold purity.
- The RBI’s tiered LTV framework, effective April 1, 2026, allows up to 85% LTV for loans under ₹2.5 lakh, enhancing borrower access to funds.
- SBI offers gold loans starting from about 8.75% p.a. With a maximum loan limit of ₹50 lakh against 18 to 24 karat gold.
Compare current gold loan interest rates and verify specific eligibility criteria with your chosen lender before applying.
Frequently Asked Questions (FAQs)
What are the typical gold loan interest rates in India for 2026?
As of June 2026, gold loan interest rates in India generally range from 8.05% to 27% p.a. This rate depends on the lender, the loan amount, gold purity, and the chosen repayment tenure. Banks often offer lower rates compared to NBFCs for similar loan amounts.
Which banks offer the lowest gold loan interest rates in India in 2026?
Several public and private sector banks offer competitive gold loan rates in 2026. For example, some banks like SBI and Indian Bank offer rates starting from around 8.25% to 9.50% p.a. Borrowers should compare current rates directly with lenders like HDFC Bank, ICICI Bank, and Bank of Maharashtra.
What is the maximum loan amount I can get against gold in India?
The maximum gold loan amount in India can range from ₹1,500 up to ₹1.5 crore, depending on the lender and the value of your gold. Lenders typically offer a Loan-to-Value (LTV) ratio of 70-75% of your gold’s market value. The RBI sets guidelines for this LTV ratio.
What is the typical repayment tenure for a gold loan in India?
Gold loan repayment tenures in India generally range from 3 months to 4 years. Some lenders offer flexible repayment options, including bullet repayment or regular EMIs. Always confirm the specific tenure options with your chosen bank or NBFC.
Does a CIBIL score affect gold loan interest rates?
While gold loans are secured, a good CIBIL score (typically above 750) can help you secure slightly lower interest rates from some lenders. A strong credit history indicates repayment reliability, even for secured loans. However, the primary factor remains the gold’s value and purity.
What documents are required to apply for a gold loan in India?
To apply for a gold loan in India, you typically need identity proof (Aadhaar, PAN, Passport), address proof (Aadhaar, utility bills), and two passport-sized photographs. Some lenders may also request income proof, especially for higher loan amounts. The pledged gold ornaments or coins are also required for valuation.
Are there any processing fees or other charges on gold loans in India?
Yes, gold loans in India usually involve processing fees, which can range from 0.5% to 3% of the loan amount, plus GST. Some lenders may also charge valuation fees, late payment penalties, or foreclosure charges. Always check the detailed fee structure with the lender before availing the loan.
