Gold Loan

Gold Loan @ 7%

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Gold Loan Key Features – Apply Now!

Gold Loan Interest Rate 7.10% per annum
Gold Loan Per Gram Rate Per Gram Today is ₹ 5,255
Gold Loan Amount Up to Rs. 1 Crore (With Income Proof)
Gold Loan Processing Fee 1.50% of the Principal Loan Amount
Gold Loan Prepayment Charges 2%+GST (Within 3 Months), 0 (After 3 months)
Gold Loan Repayment Tenure 3 Months to 24 Months
Gold Loan Repayment Scheme Bullet Payment Scheme, Overdraft Scheme


Gold is one of the maximum treasured and celebrated metals in India. Buying and gifting gold is an old tradition of our culture. However, the provider of Loan Against Gold has modified the state of affairs of ways humans use this metal. Nowadays, humans purchase gold to conquer financial issues in life.

HDFC Gold Loan Interest Rate

7.00% per annum

Processing Fee

1.50% of the Principal Loan Amount

Prepayment/Foreclosure Charges

2%+GST (Within 3 Months), 0 (After 3 months)

Valuation Fee

Rs 250 for a loan up to Rs 1.5 lacs and Rs 500 for a loan over and above Rs 1.5 lacs

Late Repayment Charges

2% p.a. + Applicable rate of interest.

Renewal Processing Fees

Rs 350 + GST

What is a Gold Loan?

Gold Loan is the quickest developing financial service in the banking industry. Most of the people have gold ornaments which are just kept in the bank lockers or at home. Thus, Loan against Gold allows the people to unleash the worth of this precious metal by availing a gold loan against it.

Also, Gold Loan Interest Rate is quite reasonable and lesser in contrast to other services like a personal loan or home loan. Moreover, the process is straightforward and hassle-free. The applicant has to place gold ornaments in the bank in exchange for the amount of loan. When the applicant repays the loan, the bank returns the gold ornaments to the customer in the same form. There is a lot of banking and non-banking companies wherein a customer can reach out for a Gold Loan.

* To get money at the comfort of your house, you need to fill in the above form and let us take your stress away of availing a Loan Against Gold.

India has approximately 10% of the total gold capital of the entire world. The reason is that the majority of Indians have gold ornaments. Loan given against Gold is a service that helps people to get money against their Gold Ornaments. The method of availing a Gold Loan is straightforward.

How does Gold Loan work?

  • The applicant has to guarantee gold jewellery to the lender in exchange for the loan amount. After you bring your jewellery to the bank, the in-house jewellery valuer examines your gold jewellery in terms of weight and purity.
  • Then, according to the worth of gold, the banks gives the loan seekers money equal to approximately 70%-75% of the value of the pledged gold.
  • Now, the bank has full possession of your gold jewellery until the full repayment of the loan amount.
  • Finally, when you do repay the whole amount of loan, the bank will return the gold in the same form to the customer.

This is the complete process of the service of Loan against Gold. Thus, the Documents needed are quite minimal as the bank is totally concerned about the quality and quantity of gold.

Gold Loan Features:

  • It is a totally secured loan which makes the rate of interest much lower as compared to other types of loans.
  • For agriculture purposes gold loans, the rate of interest can drop to as low as 8%.
  • The minimum documents needed to avail a gold loan are identity proofs and address proofs.
  • The loan gets disbursed approximately within a few hours. 

What is Gold Loan Interest Rate?

Loan Against Gold is a service that gives its customers money at the most reasonable rate of interest. If compared to other services like Personal Loan and Home Loan, Loan Against Gold Interest Rate is considerably less and reasonable. On average, it starts at 9.99% per annum and can reach up to 24% per annum. Different Banks and NBFC’s provides different interest rate to the customers.

*Read more about Gold Loan Interest Rate and compare them. 

How to Calculate Gold Loan Interest Rate?

The Rate of Interest is the amount which is priced on the amount of loan. The Gold Loan Interest Rate usually depends on the factors mentioned below:

  • Internal/External Customer: If the loan seekers have an account in the bank from where they wish to avail the loan, then such customers are known as internal customers. Internal customers are provided with a discount on the rate of interest priced by the applicant.
  • Amount of Loan: The amount of loan is the biggest factor that determines the rate of interest that will be imposed on the applicant. The Gold Loan Interest Rate is higher for loans with lesser amounts. Thus, the greater the amount of loan, the lesser is the Rate of Interest.
  • LTV Ratio (Loan to Value Ratio) – Moreover, lending organisations charge a higher rate of interest on the Loan against Gold with a high LTV ratio. Thus, the higher the LTV of the gold jewellery, the higher is the Rate of Interest charged by the applicant.

Gold Loan Interest Rate of Major Banks


 Interest Rates

HDFC Bank Gold Loan

7.10% – 14.50%

ICICI Gold Loan

7.10% – 16.10%
Muthoot Finance Gold Loan

7.10% – 24.00%

Axis Bank Gold Loan

7.10% – 17.10%
Manappuram Gold Loan

7.10% – 26.00%

Yes Bank Gold Loan

7.10% – 15.99%
Bank of India Gold Loan

7.10% – 26.00%

Federal Bank Gold Loan 

7.10% – 13.50%
IIFL Gold Loan

7.10% – 12.00%

Central Bank of India Gold Loan

7.10% – 14.65%

Canara Bank Gold Loan

7.10% – 12.65%

Allahabad Bank Gold Loan

7.10% – 10.45%

Induslnd Bank Gold Loan

7.10% – 15.75%
PNB Gold Loan

7.10% – 11.75%

Bajaj Finance Gold Loan

7.10% – 26%
SBI Gold Loan

7.10% – 15.99%

Indian Bank Gold Loan

7.10% – 15.99%
UCO Bank Gold Loan

7.10% – 26.00%

Kotak Mahindra Bank Gold Loan

7.10% – 13.50%
Syndicate Bank Gold Loan

7.10% – 12.00%


On What Factors does the Gold Loan Amount Depend?

The amount of loan dispensed depends on essentially two factors:

  • The Quantity of Gold: To start with, the weight of gold is one of the principal factors that decides the amount of loan paid to the customer. The weight is measured after subtracting the weight of the stones(if any) in the jewellery. Higher the quantity of gold greater is the amount that can be given to the customer.

*Note: Minimum 10 grams of gold is needed for loan approval. 

  • Quality of Gold: Another factor that determines the loan amount is the quality of gold. The purity should be between 18 Carat to 22 Carat. Consequently, the better is the purity of gold, the greater is the amount of loan that can be passed.

What are Different Gold Loan Schemes?

The banks provide different systems based on the purpose of availing a loan. The following are the projects that banks provide to the customers willing to avail a Loan Against Gold.

  • Non-Agricultural Loan against Gold: To start with, all the loan seekers who will not be utilising the amount for agricultural activities are qualified for this scheme. All people including Salaried, Housewives, Self Employed, Students, women who require to avail a Loan Against Gold fall below this category. There are different repayment alternatives provided to the customers like Term Loan, EMI Facility and Overdraft facility.
  • Agricultural Gold Loan: This is a kind of Loan against Gold that is given only to farmers who want to utilise the money for the agricultural exercises. This service is given to the farmers at a reduced rate of interest.

Also, the central idea of this system is to provide finance to consumers for managing crop production costs or to invest in allied agricultural projects. To avail an agricultural Gold Loan, one should have proof of farming in the form of proof of agricultural land.

*Read More: Everything about Agricultural Gold Loan 

What are the different Gold Loan Repayment Schemes? 

There are three given ways to repay the loan amount dispensed by the bank.

  • Bullet Repayment: Most of the people prefer this option when it comes to repayment of the Loan against Gold. In this type of service, the applicant has to pay the interest rate throughout the tenure of the loan. Therefore, the basic amount has to be given at the end of the loan tenure. But, this option is presented to the customers applying for short term loans. The interest rate is repaid monthly by EMI’s.
  • Overdraft Facility: Next, this is a kind of system that is recognised among the self-employed people. As people having a business have varying money requirements. Using this service, one can withdraw money according to their requirements. That is, the applicant can determine the amount from the total loan amount expended for which they need to pay interest. Thus, the interest is implemented to the amount that is removed by the customer. Finally, the customer also has a choice to renew the loan following the completion of the loan tenure.
  • EMI Facility: Moreover, this is a different scheme that customers can pick for the compensation of the Loan against Gold. In this particular option, a fixed amount is calculated, and the applicant has to pay that monthly. This value constitutes a part of the basic amount and the interest rate. This scheme is growing popular among people.

Read more: Know Everything About Gold Loan Repayment

Gold Loan Per Gram

When planning to avail of the service of Gold Loan, the initial thing that comes to the mind of a person is the amount of loan that will be expended on per gram of gold. Generally, lending organisations give 2450 Rupees to 2580 Rupees on per gram of gold. But, it again changes according to the purity of the gold.

Read More About Gold Loan Per Gram 

Who Can All Apply for a Gold Loan?

  • First and foremost, the gold must be in the name of the applicant or one of the family members.
  • Secondly, the applicant should be an Indian citizen.
  • Thirdly, the age should be in between 18 years to 70 years (at the time of loan maturity).
  • Lastly, the bank is not concerned about the employment status of the applicant. Therefore, salaried, self-employed, housewives, students, anyone can demand a Loan against Gold.

Gold Loan Eligibility Criteria:

Certain conditions are required to be satisfied to avail a loan against gold:

  • The applicant must have achieved at least 18 years of age.
  • The individual should have its own gold ornaments or jewellery that can be pledged.
  • The gold to be pledged must be 18 carats or above.
  • The applicant must have a decent CIBIL score.


18-70 years of age



Employment Status

Salaried, Self-Employed

Gold Quality

Minimum 18 Carats

What are the Documents Required for Gold Loan?


2 Passport Size

Identity Proof

Aadhar Card, Passport, PAN Card, etc. (Only 1 is required)

Residence Proof

Aadhar Card, Driving License, Ration Card, etc. In the case of Rented House then the rent agreement or water/electricity bills for the last three months can be considered. (Only 1 is required)

Does CIBIL Score Matter in Gold Loan?

No, the banks do not verify the CIBIL Score of an individual to approve of a gold loan. Loan Against Gold is a secured loan service; therefore, the bank is not concerned about the repayment account of a person. Because in case the applicant fails to repay the loan, the banks can satisfy the loan amount by the gold ornaments that they have in their possession.

Read More: What is CIBIL Score?

Why Should One Apply for a Gold Loan?

  • Great Availability: Firstly, Loan against gold is a secured loan provider. Consequently, the processing of this loan is brief because the financial institution is broadly concerned with the quality and weight of the gold.
  • Low Rate of Interest: In evaluation to offerings like personal loans, the Loan Against Gold has the minimum interest rate as banks hold safety in opposition to the loan.
  • Negligible foreclosures prices: Generally, banks do now no longer have any prepayment prices; however, a few banks can rate a penalty of simply 1%.
  • Safety of Ornaments: The jewellery is extra secure with the banks because of the strict safety In the banking establishments that are pretty much less at homes.
  • No qualification of Credit Score: As that is a secured loan, consequently, the applicant does now no longer should fear approximately terrible loan reimbursement history.
  • Income-evidence not required: The revenue of an applicant isn’t always a difficulty for availing a Loan Against Gold because it relies upon majorly at the weight and quality of gold to be had with the applicant.
  • No loan processing prices: Another benefit is that the applicant does now no longer should pay more for this provider because the approval entirely relies upon upon the asset saved as safety.
  • Flexible tenure: In addition to different advantages, the applicant can select the tenure of the loan consistent with their necessities and needs.
  • Only rate of interest: Lastly, the applicant has the choice to pay the primary quantity on the stop of the tenure and simplest the interest each month.

Gold Loan EMI Calculator:

It is essential to know the amount that one has to pay each month to the bank. Therefore, you have a choice to determine the EMI before availing a loan. You can do so very quickly and easily. Just click below and get to identify the amount of the EMI you will have to maintain monthly.

Use the EMI CALCULATOR to calculate your payable EMI Amounts in advance.

Rate of Interest
6 months
1 Yr
2 Yrs
3 Yrs
7.00% 17008 8652 4477 3088
8.00% 17058 8699 4523 3134
8.50% 17082 8722 4546 3157
9.00% 17107 8745 4568 3180
9.50% 17131 8678 4591 3203
10.00% 17156 8791 4614 3227
10.50% 17181 8815 4637 3250
11.00% 17205 8838 4661 3274
11.50% 17230 8861 4684 3298
12.00% 17254 8885 4707 3321
12.50% 17279 8908 4731 3345
13.00% 17304 8932 4754 3369
13.50% 17329 8955 4778 3393
14.00% 17354 8979 4801 3418
14.50% 17378 9002 4825 3442
15.00% 17403 9026 4845 3466


Why Gold Loan Instead of Personal Loan or Business Loan?

Now, anyone who needs immediate finance must be thinking why Loan Against Gold over Personal Loan? Various people in the country have a low credit score or lower repayment capability. Poor repayment capacity of a person may refer to the monthly wage of the person which may be weak from the bank.

That is, the bank may presume that the person will be unable to pay the loan on time. Lenders usually do not provide Personal Loan or Business Loan in such cases. This is the main reason why Loan Against Gold is the most suitable option for these people. All that the person requires to do is provide simple identity verification and the gold as collateral to the bank. Besides, Gold Loan Interest Rate is considerably less in contrast to other financial services.

Why Will Banks Provide a Loan To a Person With Poor Credit?

Banks grants loans against gold to the people with bad payment history. The reason is, in this service, gold is given as collateral to the bank. The women are emotionally connected to gold. This helps the borrower to compensate the loan as quickly as possible.

Hence, the bank is assured that the loan will be repaid on time. In case the customer ever fails to compensate the amount of loan, the bank is not at any loss as the ornaments are seized by the banks to recover the amount of loan.

FAQs for Gold Loan :

  • What is Gold Loan?

The gold loan, also known as ‘Loan Against Gold’ is a type of secured loan that a person can easily avail by retaining their gold ornaments as collateral security with the Bank. Unlike other types of secured loans, like car loans or home loans, a gold loan can be utilised for any objective.

  • How does Gold Loan work?

Loan Against Gold is straightforward to understand as well as simple to avail. The Bank presents you with money against your gold Jewelry. The amount depends upon the gold weight.

  • How much Gold Loan can I get per gram?

Depending on the purity of your Gold, banks allows gold loan between Rs. 1880 to Rs. 2700 on per gram of Gold.

  • How to pay Gold Loan Online?

You have a choice to pay a gold loan online through online repayment applications.

Read More: Best Methods of Repaying Gold Loan

  • Gold Loan is secured or not?

Yes, Loan Against Gold falls under the category of secured loan because the applicant has to place their gold jewellery into the Bank’s locker as security or as collateral.

  • How to calculate the Gold Loan interest rate formula?

The Gold loan interest rate formula depends on a variety of different factors which are; loan amount, loan tenure, quality of gold, terms with the lending bank, and loan to value ratio. Different types of banks calculate the rate of interest differently.

  • Which bank is best for Gold Loan?

HDFC Bank is currently offering the best gold loan services in India. Beginning with the low rates of interest, HDFC Bank offers several other conveniences like a personal locker for your gold ornaments, same day disbursement of the loan amount, and the highest LTV ratio to name a few.

  • What happens if Gold Loan is not paid?

Not paying your gold loan will end in a reduction in your credit score, making it tough to avail a loan in future and will also make you subject to face legal actions by your bank. These legal actions may involve prosecution under the law, extra charges and fines, confiscation and sale of your gold.

You must always repay the loan on time, and if in case you are unable to do so due to some reason, then you should notify your lender of the same and ask for relief.

  • How to repay the loan against gold?

A loan against gold can be easily repaid in the given ways. Regular EMI option in which the EMIs incorporates both the principal and interest amount. You can moreover repay only the interest amount as EMI of your loan, and then the principal amount can be compensated in full at the time of maturity.

Anyone can also make a partial payment of the interest and principal amount as and when they can. Another repayment selection that banks grant is bullet repayment; in this, you have to repay the whole amount, including both the principal and the interest at the end of the loan’s term.