Top 12 Banks Offering the Cheapest Gold Loans in India — Check Interest Rates and EMI on ₹1 Lakh

When an urgent need for cash arises, a gold loan can be one of the quickest and most reliable financial solutions. By pledging your gold ornaments as collateral, you can get immediate funds with minimal paperwork and at relatively low interest rates compared to personal loans or credit cards. Several Indian banks are currently offering highly competitive rates on gold loans, making it easier for customers to manage short-term financial needs.

Here’s a detailed comparison of 12 leading banks providing the most affordable gold loans in 2025, along with their interest rates and the approximate EMI on ₹1 lakh.

1. Punjab National Bank (PNB)

PNB is currently offering the lowest gold loan interest rate in the market. The loan starts at 8.35% per annum, making it a top choice for borrowers. For a loan of ₹1 lakh, the monthly EMI is approximately ₹8,715. Being a public sector bank, it also ensures strong trust and transparency in processing.

2. Indian Bank

Indian Bank offers gold loans at an attractive interest rate of 8.75% per annum. The monthly EMI on a ₹1 lakh loan stands at ₹8,734, making it a cost-effective and accessible option for middle-class borrowers.

3. ICICI Bank

Private sector lender ICICI Bank also provides gold loans at 8.75% per annum, matching Indian Bank’s offer. For a ₹1 lakh loan, the monthly EMI is around ₹8,734. The bank’s strong digital network ensures quick approval and easy repayment options.

4. Canara Bank

Canara Bank charges 8.95% interest on gold loans up to ₹1 lakh. The process is known to be straightforward and transparent, particularly suitable for government employees and rural borrowers.

5. Kotak Mahindra Bank

Kotak Mahindra Bank offers gold loans at a 9% interest rate, with an EMI of ₹8,745 per ₹1 lakh. The bank has built a reputation for its digital-first loan process, allowing customers to apply online and receive instant disbursement.

6. HDFC Bank

One of the largest private lenders, HDFC Bank begins its gold loan offerings at 9.30% interest per annum. The EMI for a ₹1 lakh loan is approximately ₹8,759. With an extensive branch network across India, the bank ensures a fast and hassle-free process.

7. Bank of Baroda (BoB)

The Bank of Baroda provides gold loans at 9.40% per annum, with a monthly EMI of ₹8,764 for ₹1 lakh. Being a government bank, BoB is known for its reliability and customer-friendly repayment options.

8. Bank of India (BOI)

Bank of India’s gold loan rates also start at 9.40% per annum, similar to BoB. The EMI on ₹1 lakh stands at ₹8,764, and the bank’s wide rural network ensures easy accessibility even in smaller towns.

9. Union Bank of India

Union Bank is offering loans starting at 9.65% interest, with a monthly EMI of ₹8,775 for ₹1 lakh. The bank frequently introduces special gold loan schemes for farmers and small business owners.

10. Axis Bank

Axis Bank’s gold loan rates begin at 9.75%, with an EMI of ₹8,780 per ₹1 lakh. The bank emphasizes fast, paperless processing, making it ideal for customers seeking quick disbursement.

11. State Bank of India (SBI)

India’s largest lender, SBI, provides gold loans at a 10% interest rate. The EMI on ₹1 lakh comes to around ₹8,795. SBI’s credibility and easy repayment plans make it a preferred choice among traditional borrowers.

12. IndusInd Bank

At the higher end of the list, IndusInd Bank charges 10.50% per annum, with an EMI of ₹8,815 on ₹1 lakh. However, the bank compensates with extremely fast processing and same-day disbursement, ideal for emergency cash needs.

Key Takeaways for Borrowers

• Interest Range: Most banks offer gold loans between 8.35% and 10.50% per annum.

• Loan Tenure: Typically ranges from 6 to 24 months, depending on the lender.

• Processing Time: Public sector banks may take slightly longer, while private banks like ICICI, Axis, and Kotak offer instant approval and digital verification.

• Eligibility: Applicants must be 18 years or older and provide KYC documents such as Aadhaar, PAN, and proof of gold ownership.

• Safety: The pledged gold remains secured in the bank’s vault and is fully insured until repayment.

Final Word

A gold loan can be a smart and secure way to manage short-term financial challenges. For borrowers seeking low interest rates and minimal paperwork, banks like PNB, Indian Bank, and ICICI Bank are currently offering the most affordable options. Before applying, always compare interest rates, processing fees, and tenure flexibility to ensure you get the best possible deal for your needs.