A gold loan is a loan secured by gold. You pledge gold jewelry or coins for funds. These funds can be for personal or business needs. In 2025, Indian gold loan rates are between 7.75% and 29% annually. Rates depend on the lender. Loan amount, gold purity, and term also matter. Banks or NBFCs influence the rate. Public banks like Bank of Baroda offer low rates. Private banks like HDFC offer flexibility. NBFCs like Muthoot Finance provide quick cash. They often have higher rates for short terms.
This guide shows 2025 gold loan rates. It also covers who can get one. You will see required papers and how to repay. A comparison of banks and NBFCs is included.
What is a Gold Loan Interest Rate? A gold loan interest rate is a fee. Banks charge this fee for lending money. You use gold as security for the loan. In India, these rates typically range from 8% to 26% yearly. You can pay interest monthly or all at once. This depends on the lender’s terms.
2025 Gold Loan Interest Rate Highlights The table shows 2025 gold loan rates. It compares rates, loan terms, and fees. This is for top Indian banks and lenders.
Bank Name Interest Rate Range (p.a.) Loan Tenure Processing Fee
SBI 8.55% – 10.25% Up to 36 months 0.50% of loan amount
Canara Bank 9.25% Up to 12 months ₹500 to ₹1000 approx.
Union Bank of India 8.70% – 9.40% Up to 12 months 0.50% of loan amount + GST
Indian Overseas Bank 9.30% – 10.25% Up to 12 months ₹500 approx.
PNB 8.35% – 9.75% 12 to 24 months 0.75% of loan amount + GST
Bank of Baroda 7.75% – 9.95% Up to 12 months ₹500 + GST
HDFC Bank 9.30% – 17.86% 3 to 24 months ₹250 to ₹5,000 + GST
Federal Bank 9.99% – 11.90% Up to 12 months 0.25% of loan amount + GST
Central Bank of India 7.90% – 8.90% Up to 12 months 0.50% of loan amount + GST
Bank of India 8.35% – 9.05% Up to 12 months 0.50% + GST
ICICI Bank 9.15% – 16.75% Up to 12 months ₹199 to ₹4999
Axis Bank 9.75% – 19.00% 6 to 36 months 1% of loan amount + GST
Gold Loan Features Gold loans are a good option for quick cash. You use gold assets as security.
It’s a secured loan using gold. Get funds fast with little paperwork. Repayment terms are usually short. They range from 3 months to 3 years. Pay interest monthly or in a lump sum. You can also make partial payments. Your credit score doesn’t always affect approval. It might affect the interest rate. Interest rates are often lower than personal loans. Your gold is returned after you pay the loan.
Gold Loan Eligibility Gold loan requirements differ by lender. Check the lender’s website first.
You must be at least 18 years old. You must pledge gold as security. The gold must be 18 carats or higher.
Gold Loan Documents Needed Required documents vary by lender. Here’s a general list.
A filled and signed loan application. Recent passport-size photos. Your PAN card or Form 60. Proof of identity (like Aadhaar or Voter ID). Proof of address (like a passport or utility bill). Proof of age (like a birth certificate).