Gold loan interest rates — compare + calculate before you borrow
Enter weight + karat — see how much loan you'll get at 60%, 70%, 75% LTV. Compare interest rates across every major bank + NBFC. Spot a fair rate from a rip-off.
Calculate my gold loan →How gold loans really work in India
A gold loan is the simplest, fastest form of secured credit in India — pledge your jewellery, walk out with cash the same day. But the interest rates vary wildly: public banks charge 8–12%, private banks 9–17%, NBFCs 12–26%. The same loan of ₹1 lakh for 12 months can cost you ₹9,000 or ₹22,000 in interest — depending on where you go.
Most borrowers don't compare — they walk into the nearest Muthoot because it's convenient, and pay 15% more than a public-sector bank would charge. The Varadhi Gold loan calculator shows you the loan amount, the interest cost, and how much you'd save by switching lenders — before you sign anything.
How much loan will you get?
RBI caps gold-loan LTV (loan-to-value) at 75%. Lenders offer different tiers:
On 10g of 22K gold at today's rate (~₹13,150/g = ₹1,31,500 market value): 60% = ₹78,900, 70% = ₹92,050, 75% = ₹98,625.
Gold loan interest rate — all bank comparison
Approximate current rates across major Indian lenders (updated periodically — always confirm with the lender):
| Lender | Type | Interest Rate (p.a.) |
|---|---|---|
| Union Bank of India | BANK | 8.65% – 9.90% |
| Canara Bank | BANK | 8.75% – 10.50% |
| SBI | BANK | 8.85% – 12.00% |
| Federal Bank | BANK | 8.99% – 15.99% |
| Indian Bank | BANK | 9.00% – 10.50% |
| HDFC Bank | BANK | 9.10% – 17.90% |
| Bank of Baroda | BANK | 9.15% – 10.50% |
| ICICI Bank | BANK | 9.25% – 18.00% |
| Axis Bank | BANK | 13.00% – 17.00% |
| Muthoot Finance | NBFC | 12.00% – 26.00% |
| Manappuram Finance | NBFC | 12.00% – 26.00% |
| IIFL Finance | NBFC | 11.88% – 27.00% |
Rates approximate as of 2026. Always confirm the latest headline rate + processing fee + prepayment charges with the lender before applying. Actual rate depends on loan size, tenure, LTV, and your credit profile.
How to get a fair gold loan
Five steps. Two minutes. Runs in your phone browser before you walk into a bank or NBFC branch.
Real example — 10g pledged for ₹1 lakh loan
Suppose you pledge 10g of 22K gold (worth ₹1,31,500 today) and borrow ₹1 lakh for 12 months. Compare total interest cost across lender types:
Union Bank / SBI (@ 9% p.a.): ~₹4,940 interest (EMI ₹8,745)
HDFC / ICICI (@ 12% p.a.): ~₹6,620 interest (EMI ₹8,885)
Muthoot / Manappuram (@ 18% p.a.): ~₹10,016 interest (EMI ₹9,168)
Manappuram premium scheme (@ 24% p.a.): ~₹13,540 interest (EMI ₹9,455)
SAVINGS Switching from an NBFC (18%) to a public bank (9%) saves you ~₹5,000 per year on the same loan. Worth 1–2 extra days of paperwork.
Frequently asked questions
What is the gold loan interest rate today in India?
Bank gold loan interest rates in India range from 8.65% to 12% per annum. SBI typically offers 8.85–12%, Canara Bank 8.75–10.50%, Bank of Baroda 9.15–10.50%, Union Bank 8.65–9.90%, HDFC 9.10–17.90%. NBFCs (Muthoot Finance, Manappuram) offer 12–26% — higher rates but faster approval. Rates fluctuate; always check with the lender before applying.
How much loan will I get on 10 grams of 22K gold?
On 10 grams of 22K gold at today's rate of ~₹13,150/g, the market value is ₹1,31,500. At 75% LTV (RBI max), loan = ₹98,625. At 70% LTV (common bank offer), loan = ₹92,050. At 60% LTV (conservative), loan = ₹78,900. The Varadhi Gold loan calculator shows all three tiers at today's live rate.
Which bank has the lowest gold loan interest rate?
Public-sector banks typically offer the lowest gold loan rates — Union Bank of India starts at 8.65%, Canara Bank at 8.75%, SBI at 8.85%. Private banks (HDFC, ICICI, Axis) offer 9–17% depending on your credit profile and loan size. NBFCs are always higher (12%+) but process faster. Lowest headline rate isn't always the cheapest overall — always compare processing fees + prepayment charges too.
What is the gold loan interest rate at Muthoot Finance / Manappuram?
Muthoot Finance and Manappuram Finance are NBFCs and charge 12% to 26% per annum, depending on the scheme (short-term vs long-term), loan size, and LTV. Their advantage is speed — many schemes disburse loan within 30 minutes with minimal paperwork. Their downside is that a 22–24% NBFC rate costs roughly double what a 9–10% public-sector bank rate would cost over 12 months on the same loan.
What is loan-to-value (LTV) on gold loans in India?
LTV is the percentage of your gold's market value that the lender will give as loan. RBI caps LTV at 75% for banks and NBFCs on gold loans. If your gold is worth ₹1 lakh, max loan = ₹75,000. Banks often offer 60–70% (more conservative); NBFCs often push to the 75% RBI cap. Higher LTV = more loan but also higher risk if gold price falls (lender may ask for top-up).
Should I take a gold loan from a bank or an NBFC?
Bank if: you have time (approval takes 1–3 days), you want lowest interest (8–12% vs NBFC 12–26%), you're borrowing a large amount. NBFC if: you need cash today (approval in 30 mins), you have limited paperwork, you're borrowing small amounts short-term. For most Indian gold-loan customers, bank is the cheaper choice — only go NBFC when speed matters more than the extra ₹10,000–20,000 in annual interest.
How is monthly EMI calculated on a gold loan?
Monthly EMI = [Loan × Rate × (1+Rate)^Tenure] / [(1+Rate)^Tenure − 1], where Rate is monthly (annual rate / 12) and Tenure is months. On a ₹1 lakh loan at 9% p.a. for 12 months, EMI ≈ ₹8,745, total repayment ₹1,04,940, interest ₹4,940. At 18% p.a. for the same loan, EMI ≈ ₹9,168, total ₹1,10,016, interest ₹10,016 — more than double. Many gold loans also offer "interest only, bullet principal" — you pay just interest monthly and repay the whole principal at maturity.
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