Lowest Gold Loan Interest Rates: Bank and NBFC Rates Before Dussehra

The lowest published gold loan interest rates in September 2026 start at 8.50% a year at Bank of Maharashtra and 8.75% at Indian Bank and ICICI Bank. Most other large banks start between 8.95% and 9.15%. If you need a gold loan around Dussehra (20 October 2026), a bank’s published card rate is usually cheaper than an NBFC’s headline rate, which often depends on paying interest every month.

Key facts

Lowest gold loan interest rates at major lenders

The table lists rates from each lender’s own website, with the date shown there. It is sorted by the lowest published rate, not by overall value.

Your own rate depends on the loan amount, the scheme and the repayment type. Check the lender’s page on the day you apply; rates tied to a bank’s RLLR move when the repo rate moves.

Why a low headline rate can cost more

NBFC gold loan rates often come with a payment condition. Manappuram’s table shows 9.90% only if interest is paid monthly on its ₹5 lakh-plus scheme. The same scheme charges 17% with bi-monthly payment and 22% with quarterly payment, against a base rate of 24% and an annualised rate of 26.82%.

On a ₹1 lakh loan held for a year, simple interest is roughly:

• ₹8,500 at 8.50%.
• ₹9,150 at 9.15%.
• ₹9,900 at 9.90%, if every monthly payment is on time.
• ₹24,000 at 24%, if the concessional rate is lost.

Read the scheme’s rate slabs, not just the “starting from” figure. Ask the lender in writing what rate applies if you miss a monthly interest payment.

How much you can borrow per gram

RBI’s gold lending directions cap the loan-to-value ratio for consumption loans at 85% up to ₹2.5 lakh, 80% above ₹2.5 lakh up to ₹5 lakh, and 75% above ₹5 lakh. At the IBJA 22K price of ₹13,956 a gram (16 September 2026), 85% works out to about ₹11,863 a gram. Lenders value gold at the lower of the 30-day average and the previous day’s closing price, so the actual figure is usually lower.

Banks also apply their own margins, which can be stricter than RBI’s cap. For per-gram figures by lender, see our guide to the gold loan rate per gram today, and check the day’s price on the gold rate today page.

How to get a low-interest gold loan before Dussehra

1. Decide the amount and tenure. Bullet loans must be repaid within 12 months; EMI loans can run longer.
2. Compare the published rate for that amount and repayment type at two or three lenders.
3. Check the processing fee. Bank of Maharashtra charges nil up to ₹3 lakh; other lenders charge a percentage.
4. Ask about foreclosure charges. ICICI Bank, for example, charges up to 2% for closure in the first months, and the fee falls to nil later.
5. Visit the branch with your gold, PAN and Aadhaar or other KYC documents; the lender weighs and tests the gold at the branch.
6. Read the sanction letter and Key Facts Statement for the rate, fees and auction terms before you sign.
7. Apply a week or two before the festival, so valuation and disbursal are not squeezed by holiday closures.

Festive discounts on gold loans, where offered, are announced by lenders at short notice. Confirm any offer in writing, with its end date, rather than relying on an advertisement.

Gold loan vs personal loan

Personal loan rates at the eight lenders we track start at 9.99% to 10.99% for the best profiles and run up to 33%. A gold loan at a bank’s card rate is often cheaper and needs less paperwork, because the gold secures it. The trade-off is that your jewellery can be auctioned if you default. Under RBI’s rules the lender must give notice before an auction and refund any surplus within seven working days.

Your rights when you repay

Once the loan is fully repaid, the lender must return your gold, at the latest within seven working days. For delays caused by the lender, it must pay you ₹5,000 for each day. If a complaint is not resolved within 30 days, you can go to the RBI Ombudsman within 90 days under the Integrated Ombudsman Scheme, 2026. Our gold loan LTV and rules guide covers the rest of the RBI framework.

Frequently asked questions

Which bank gives the lowest interest gold loan this Dussehra?

Among the lenders checked, Bank of Maharashtra publishes the lowest rate at 8.50%, followed by Indian Bank and ICICI Bank from 8.75%. Rates can change before 20 October, so check on the day you apply.

What is the lowest gold loan interest rate in 2026?

The lowest published bank rate we found is 8.50% a year (Bank of Maharashtra, updated 1 August 2026). Other loan slabs at the same bank carry up to 9.25%.

Are NBFC gold loans cheaper than bank gold loans?

Not usually. Manappuram’s 9.90% needs a ₹5 lakh-plus loan and monthly interest payment; its smaller schemes start at 11.50% and 12%, and less frequent payment raises rates to between 17% and 24%.

How much gold loan can I get per gram today?

At most about ₹11,863 per gram of 22K gold for a loan up to ₹2.5 lakh, at 85% of the 16 September 2026 IBJA price. Lenders’ own valuation and margins usually give less.

Will gold loan rates fall after the October RBI meeting?

Rates linked to a bank’s RLLR move if the RBI changes the repo rate, now 5.25%. Fixed-rate schemes and NBFC rates are set by the lender.

Can I prepay a gold loan?

Yes. Some lenders charge a foreclosure fee within an initial period; at ICICI Bank the fee falls to nil after at most 180 days.

Sources

• Retail interest rates — Bank of Maharashtra (checked 17 Sep 2026)
• Gold loan — Bank of Maharashtra (checked 17 Sep 2026)
• Interest rates on personal segment loans — Indian Bank (checked 17 Sep 2026)
• Gold loan interest rate and charges — ICICI Bank (checked 17 Sep 2026)
• Loans interest rates — Canara Bank (checked 17 Sep 2026)
• Personal gold loans — State Bank of India (checked 17 Sep 2026)
• Retail loans interest rates — Bank of Baroda (checked 17 Sep 2026)
• Interest rate on advances — Punjab National Bank (checked 17 Sep 2026)
• Gold loan interest rates and charges — HDFC Bank (checked 17 Sep 2026)
• Gold loan interest rates — Manappuram Finance (checked 17 Sep 2026)
• Lending Against Gold and Silver Collateral Directions, 2025 — Reserve Bank of India (checked 17 Sep 2026)
• Integrated Ombudsman Scheme, 2026 FAQs — Reserve Bank of India (checked 17 Sep 2026)
• Gold rates — India Bullion and Jewellers Association (checked 17 Sep 2026)
• Monetary policy statement, August 2026 — Reserve Bank of India (checked 17 Sep 2026)