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Best Gold Loans

Gold loans are fast, need no credit score, and are cheap relative to unsecured credit — but they carry a risk no other retail loan does: default means your gold is auctioned.

Maximum loan-to-value on gold
75%

RBI cap against the value of the gold pledged. Check the current directions.

as of 2026-08-17· Reserve Bank of India directions on gold lendingverified

Borrow against gold for a short, defined need you are certain you can repay, not to plug a recurring shortfall.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

Banks are typically cheaper than gold loan NBFCs; NBFCs are faster and more accessible, and price accordingly. The comparison to run is per-gram lending value against the interest rate together: a lender offering a higher per-gram value at a higher rate may still be the better deal if it means pledging less jewellery, and the reverse is true if you can pledge more.

Read the auction clause before signing. It sets how much notice you get, how the reserve price is fixed, and how any surplus over the outstanding is returned to you. RBI conduct requirements exist here — including on notice and on returning surplus — and they are the part of the contract that matters most on the day it goes wrong.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.

View the full breakdown (20 rows) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

How much loan can I get on 10 grams of gold?

Up to 75% of the assessed value of the gold under the RBI loan-to-value cap. The rupee amount moves daily with the gold price, and lenders assess only the gold content — stones, and usually making charges, are excluded from the valuation.

Which is cheaper: a bank gold loan or an NBFC gold loan?

Banks generally price lower. NBFCs disburse faster, keep longer hours and have deeper branch networks in smaller towns, and their rates reflect that convenience. If you can wait a day, check a bank first.

What happens if I cannot repay a gold loan?

The lender can auction the pledged gold after giving notice as required. Any surplus over the outstanding must be returned to you. This is the reason a gold loan should never be used for a need you are not confident of repaying — the collateral is usually a household's most emotionally significant asset.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [2]Directions on lending against gold collateral — loan-to-value and auction conduct— Reserve Bank of IndiaPrimary
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.