If you have gold jewellery and need money, a gold loan can be a good choice. It’s a secured loan, where you can borrow money from a bank or NBFC by pledging your gold jewellery or coins.
If you’re considering taking a gold loan, here’s a detailed look at the interest rates offered by different lenders.
Gold Loan Interest Rates in 2025
In 2025, gold loan interest rates in India start from around 8% and can go up to 29%, depending on the bank or NBFC.
The rate also varies based on the purity of your gold, the loan tenure, and your repayment capacity.
Gold Loan Rates at Government Banks
Government banks are offering gold loans at lower interest rates compared to private banks and NBFCs:
SBI (State Bank of India): 8.55% to 10.25%
Central Bank of India: 8.40% to 9.50%
Punjab National Bank (PNB): Up to 9.25%
Indian Bank: 8.65% to 10.40%
Gold Loan Rates at Private Banks
Private banks usually charge slightly higher interest:
HDFC Bank: 9.30% to 17.86%
Axis Bank: Starting from 17%
Kotak Mahindra Bank: 8% to 24%
IndusInd Bank: 9.60% to 16%
Bandhan Bank, Federal Bank, IDBI Bank: Rates vary as per internal policies
Gold Loan Rates at NBFCs
Non-Banking Financial Companies (NBFCs) offer gold loans with a wider range of interest rates:
Muthoot Finance: 12% to 27%
Manappuram Finance: 14% to 29%
Benefits of Taking a Gold Loan
Quick approval and minimal paperwork
Instant cash by pledging gold
Loan terms from 3 months to 3 years
Flexible repayment: EMI, bullet repayment, or partial payments
Credit score doesn’t matter much, but a good score may help get a lower rate
You get your gold back after full repayment
Documents Required for a Gold Loan
Duly filled application form
Passport size photograph
PAN card or Form 60
ID proof (Aadhaar, Voter ID, Driving Licence)
Address proof (electricity bill, rent agreement, passport)
Age proof
Signature proof
Processing Fees and Valuation Charges
Each bank or NBFC has different charges for processing the loan:
SBI: Rs 200 + GST for a 3-month loan; for 12 months, 0.50% of the loan (minimum Rs 500)
HDFC Bank: Up to 1% of the loan amount
Axis Bank: Rs 300 or 0.5% for higher amounts
PNB: 0.30% + GST or Rs 500
Kotak Mahindra & Federal Bank: 2% to 3% of loan amount
Indian Bank: No processing fees
IDBI & IndusInd Bank: Around 1%.
