Gold Loan Interest Rates, Eligibility, Documents & EMI Calculator
Explore Gold Loan options, compare indicative interest rates, understand eligibility and estimate repayments before applying. LoansBazaar India helps customers understand available lender options and application requirements.
Loan approval, amount, interest rate and terms depend on the selected lender's assessment and policies. No approval is guaranteed.
What Is a Gold Loan?
A Gold Loan is a secured loan in which eligible gold jewellery is pledged to a bank or NBFC as collateral. The lender assesses eligible gold content, purity, net weight and applicable valuation rules to determine the amount that may be offered.
Eligible customers may consider a Gold Loan for short-term personal expenses, education, medical costs, business working capital or other permitted needs. Since the loan is secured against gold, missed or unpaid repayments can put the pledged jewellery at risk.
Gold Loan Interest Rates Offered by Various Lenders
Interest rates differ by lender, scheme, repayment method, loan amount and applicant profile. The figures below are indicative reference figures supplied for this page and are not a live or independently verified rate quote.
| Bank / Lender | Indicative Interest Rate | What to Verify |
|---|---|---|
| Bank of India | 8.80% p.a. onwards | Current scheme rate, benchmark and fees |
| Canara Bank | 9.25% p.a. (supplied figure) | Scheme, tenure and repayment method |
| Bank of Maharashtra | Around 8.50% p.a. (supplied indicative figure) | Current rate and eligible scheme |
| Punjab National Bank | 9.25% p.a. onwards | Current scheme rate and applicable charges |
| Rupeek | 8.88% p.a. onwards | Current product offer and effective borrowing cost |
| State Bank of India (SBI) | 8.75% p.a. onwards (supplied figure; verify before publishing) | Scheme-specific rate and repayment type |
| ICICI Bank | 10.00% p.a. (supplied figure) | Current product rate, fees and tenure |
| IIFL Finance | 11.88%–27.00% p.a. (supplied range) | Product-specific pricing and total cost |
| Axis Bank | 17.00%–19.00% p.a. (supplied range) | Current scheme, customer eligibility and fees |
| India Gold | 0.77% per month (supplied figure) | Confirm monthly calculation, annualised cost and fees |
Before accepting a loan, review the Key Facts Statement (KFS), annual interest rate, all applicable charges, repayment schedule, overdue charges, prepayment/closure terms and conditions for releasing pledged gold.
Gold Loan LTV Ratio and Eligible Loan Amount
The Loan-to-Value (LTV) ratio indicates the permitted loan amount in relation to the lender-assessed eligible value of the pledged gold. Under the RBI's gold and silver collateral framework for eligible consumption loans, the maximum LTV limits are tiered by loan amount as follows. Confirm applicability with the lender and current RBI directions.
| Eligible Consumption Loan Amount | Maximum LTV Limit |
|---|---|
| Up to ₹2.5 lakh | Up to 85% |
| Above ₹2.5 lakh and up to ₹5 lakh | Up to 80% |
| Above ₹5 lakh | Up to 75% |
Gold value can be affected by purity, eligible net weight, stones or non-gold components, valuation methodology and the applicable reference price. The lender must perform its own assessment.
Gold Loan Amount, Tenure and Processing Fees
Minimum and maximum loan amounts, tenure and fees are product-specific. The ranges below are broad examples for customer guidance only—not a guarantee that every lender offers these terms.
| Parameter | General Reference | Important Note |
|---|---|---|
| Loan amount | May start around ₹10,000–₹20,000; higher limits vary substantially | Confirm the selected scheme's minimum and maximum |
| Tenure | Term loans may run from several months to a few years; some bullet products have shorter tenures | Confirm maturity date and full repayment obligation |
| Interest rate | Varies by lender, scheme and repayment structure | Compare the annual rate and effective total cost |
| Processing fee | May be a fixed fee or a percentage of the loan | Check taxes, valuation fees and any other charges |
| Early closure | Depends on the lender and product terms | Ask about any applicable prepayment or closure charges |
Gold Loan Eligibility Criteria
- Applicant must meet the lender's minimum age and other eligibility requirements.
- Applicant must provide valid KYC and identity verification documents.
- Gold jewellery must meet the lender's accepted purity, condition and valuation criteria.
- Applicant must agree to the loan agreement, repayment schedule and collateral terms.
- Additional assessment or documentation may be required depending on loan size and product.
Salaried individuals, self-employed professionals, business owners, traders, farmers, homemakers and pensioners may be eligible under certain schemes. Eligibility varies by lender; do not assume that income documents or credit checks are waived in every case.
Documents Required for a Gold Loan
- Identity and KYC documents accepted by the lender, such as Aadhaar or another permitted document.
- PAN or other applicable tax identification details, where required.
- Address proof, if requested by the lender.
- Recent passport-size photograph, where required.
- Gold jewellery for inspection and valuation.
- Bank account details for disbursement, where applicable.
- Additional documents requested under the selected scheme or applicable rules.
Gold Loan Repayment Options
Overdraft or other structures may also be available under selected products. Not every repayment option is offered by every lender. Failure to repay can lead to recovery action, including auction of pledged gold, subject to applicable law and the loan agreement.
Gold Loan EMI Calculator
Enter the loan amount, annual interest rate and tenure to estimate the monthly EMI for a standard reducing-balance loan. This is a calculator estimate, not a lender quotation.
Estimate excludes fees, taxes and other charges. Actual repayments vary by lender and product.
Formula: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is principal, r is monthly interest rate and n is the number of monthly instalments. At 0% interest, the principal is divided equally across the tenure.
This calculator applies to conventional EMI-based repayment only. Bullet, overdraft or interest-only products need a product-specific calculation; use the lender's official repayment schedule for final decisions.
Why Use LoansBazaar India for Gold Loan Assistance?
LoansBazaar India is a digital loan information and application-assistance platform, not a bank or NBFC. Any lender partnership, product availability or service coverage should be confirmed before it is represented as guaranteed.
How to Apply for a Gold Loan
- Submit an enquiry: Share your basic requirements through the website.
- Compare available options: Review eligible lenders, interest rates, fees and repayment terms.
- Complete KYC and valuation: The selected lender verifies documents and assesses the gold.
- Review the loan offer: Read the KFS, agreement, repayment schedule and all charges before accepting.
- Disbursement and repayment: If approved, funds are disbursed under lender procedures. Repay on time and follow the process to release pledged gold.
Frequently Asked Questions About Gold Loans
Can I get a Gold Loan without a salary slip?
Some lenders may not require a salary slip for certain Gold Loan products, because the loan is secured by eligible gold. KYC, valuation and other lender requirements still apply.
What is the minimum Gold Loan amount?
The minimum depends on the lender, scheme, location and valuation. Check the selected lender's current product terms.
Can self-employed applicants apply?
Eligible self-employed applicants and business owners may apply, subject to lender policies, KYC and gold valuation requirements.
Is a Gold Loan better than a Personal Loan?
It depends on the total cost, repayment ability, urgency and risk tolerance. A Gold Loan places pledged gold at risk if you do not repay, while a typical unsecured Personal Loan does not require gold collateral.
Can I close a Gold Loan early?
Early closure depends on the product terms. Confirm outstanding interest, any applicable charges and the process for release of pledged gold with the lender.
How is the Gold Loan interest rate determined?
The lender sets pricing based on the scheme, loan structure, amount, applicable benchmark and other relevant factors. Review the written offer and KFS for the applicable rate and fees.
Can I start a Gold Loan application online?
You may be able to start an enquiry online. Gold inspection, valuation, pledge formalities and verification depend on the lender's process.
What happens if I cannot repay?
Contact the lender promptly to discuss your situation. Non-payment may result in recovery action and auction of the pledged gold in accordance with applicable law and the loan agreement.
Need Gold Loan Assistance?
Contact LoansBazaar India to learn about the enquiry process and available loan information. Service availability and lender coverage may vary by location.
Website: https://loansbazaarindia.com/
Email: info@loansbazaarindia.com
Partner enquiries: partner@loansbazaarindia.com
Important Disclaimer
LoansBazaar India provides financial product information and loan application assistance. It is not a bank or NBFC. Interest rates, loan amount, eligibility, tenure, processing fees, taxes, repayment terms and other conditions are subject to the selected lender's policies and final approval. Rates shown in this article are indicative reference figures and must be verified with the lender before applying. No approval or disbursement is guaranteed.
Customers should check the lender's official terms, applicable RBI directions, Key Facts Statement (KFS), repayment obligations, charges and collateral-release conditions. A Gold Loan is secured against pledged gold. Failure to repay may result in recovery action, including auction of the pledged gold, in accordance with applicable law and the loan agreement.
What Is Gold Loan?
Key Features of a Gold Loan
- Quick Disbursal: High approval speed with minimal paperwork and no mandatory credit score check in most schemes.
- Repayment Options: Flexible structures including EMI , Bullet Repayment (lump sum principal + interest at end), or Overdraft (Liquid Gold Loan) .
- Gold Purity Requirement: Generally accepts gold jewelry ranging from 18K to 22K purity.
- Asset Safety: Pledged gold is stored in high-security vaults until full repayment.
- Loan Amount: ₹10,000 to ₹1 Crore (up to ₹2 Crore+ depending on collateral value and lender).
- Tenure: 3 months to 36 months (some banks allow up to 42–48 months; bullet repayment schemes are capped at 12 months).
- Interest Rate: 8.00% to 16.00% p.a. for public and private banks; NBFCs may charge up to 24% p.a.
- Processing Fees: 0.25% to 1.00% of the loan amount (plus GST); often waived or discounted during promotional drives.
- Other Charges: Appraiser/valuation charges (₹250–₹1,500) and nominal stamp duty.