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Gold Loan Interest Rates

Gold loan rates span roughly 9% at banks to the high teens at NBFCs, and the rate alone is not the cost.

Typical gold loan rate range
9 – 18% p.a.

Banks at the lower end, gold loan NBFCs at the upper.

as of 2026-08-15· Lender rate cardsreported

Per-gram lending value, processing fee, valuation charge and the repayment structure — bullet, EMI or interest-only — together decide what you actually pay.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026

Beyond the table

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.

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

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.

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
  2. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
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.