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Banks and NBFCs offering the cheapest gold loans right now – Check interest rates & EMIs

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Lenders usually sanction a loan amount not more than 75% of the pledged gold’s current market value.

High accessibility of loan collateral, usually lower interest rates than secured financing facilities like personal loans, possibility of quick and hassle-free loan disbursal, and lesser reliance on the borrower’s credit score make gold loans one of the most popular loan products in our country. These loans, often taken against household gold ornaments, could not just help in achieving our financial goals but also come to our rescue during financial emergencies.

Most banks and non-banking financing companies (NBFCs) offer gold loans with multiple repayment tenure options. So, you’ll be well-advised to carefully compare your options to find the lender that offers the best repayment terms.

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However, before applying for a gold loan, ensure the value of your pledged gold would be enough to meet your financing requirement. Do note, the value of 24-carat gold has started sliding soon after peaking to more than Rs 56,000 in August last for 10 grams. Gold prices have started crawling upwards in April after bottoming to around Rs 44,000 (10 grams of 24-carat gold) in March. Also, lenders usually sanction a loan amount not more than 75% of the pledged gold’s current market value, according to BankBazaar.

You’ll be well-advised to consider all these factors while determining your loan amount and choosing a lender. Lastly, ensure you have a thorough repayment plan to avoid any penalties and a potential loss of a precious asset.

To help you make informed decisions, we have compiled a list of gold loan interest rates currently being offered by some of the leading banks and NBFCs in our country. We have also provided the indicative EMIs for Rs 5 lakh gold loans taken for 3-year tenure by each of the lenders mentioned in the table below.

Do note, we have only considered the lowest advertised gold loan interest rates for each of the lenders, have not included processing fee or any other charges for EMI calculation, and the rates applicable to you could be different depending on your loan amount, LTV ratio, loan tenure or any other terms and conditions of your chosen lender.

Interest Rates and Indicative EMIs for Rs 5 lakh Gold Loans With 3-year Tenures

Disclaimer: Interest rates on gold loans for all listed (BSE) public and private banks and selected NBFCs have been considered for data compilation. Banks for which data is not available on their website are not considered. Data collected from the respective websites on April 13, 2021. The lowest rate offered by the banks/NBFCs has been considered in the table. The EMI is calculated on the basis of the interest rate mentioned in the table for Rs 5 lakh loan with a tenure of 3 years (processing fee and other charges are assumed to be zero for EMI calculation). *IRR for Qtr January to March 2021. Data compiled by, an online marketplace for loans, credit cards and more.

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