Gold Loan: What is the interest rate on gold loans? Here's a list of public and private banks..

When someone needs money suddenly, whether it's for a medical emergency, a child's education, a business investment, or home renovations, a gold loan is an excellent option. It's hassle-free and provides access to funds in a short time.

A gold loan involves pledging your gold jewelry or coins to a bank or NBFC (non-banking financial institution) and receiving a fixed loan amount in return. This loan is for a period ranging from a few months to a year, and you can repay it in easy installments or a lump sum.

Interest Rates on Gold Loans in 2025
Now let's talk about the real issue: interest rates. The interest rates of various banks and financial institutions in the country as of October 2025 are as follows:

Public Sector Banks:

Punjab National Bank (PNB) 8.35%
Indian Bank 8.75%
Canara Bank 8.90%
Bank of India/Baroda 9.40%
Union Bank 9.65%
State Bank of India 10.00%

Private Banks:

ICICI Bank 9.15%
HDFC Bank 9.30%
Kotak Mahindra Bank 9.00%
Axis Bank 9.75%
IndusInd Bank 10.50%

NBFCs (Non-Banking Institutions):

Bajaj Finserv 9.50%
IIFL 11.88%
Manappuram Finance 15.00%
Muthoot Finance 22.00%

These rates are as of October 7, 2025. Updated by Bazaar.com. Rates may vary slightly depending on your credit history and the purity of the gold.

What gold is eligible for a gold loan?
To qualify for a gold loan, you must have 18-22 carat gold jewelry. Some banks also accept 24-carat coins, but the limit is 50 grams per person. Gold statues, gold utensils, white gold, jewelry less than 18 carats, and gold-plated jewelry will not be accepted for gold loans. Some banks also do not accept guineas and biscuits. Even if your jewelry is studded with gemstones, you may still be eligible for a loan, but its value will be reduced.

How much loan can you get per gram of gold?
The loan amount depends on the purity of your gold and its carat value. Banks typically offer a loan-to-value (LTV) ratio of 75% to 90%. For example, if you have 20 grams of 22-carat jewellery, and the market price of gold is ₹5,500 per gram, you can get a loan of around ₹82,500 to ₹99,000.

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