Here are the top offerings on gold loan interest rates in 2021:
Bank/NBFC |
Loan Amount (in Rs.) |
Interest Rate |
Processing Fee |
Bank of India |
Up to Rs. 25 lakhs |
7.35% p.a. onwards |
None for Rs. 1 lakh and maximum can go up to Rs. 300 |
State Bank of India |
20,000 to 50 lakhs |
7.50% p.a. onwards |
None, if applied through the SBI YONO app; 0.25% of the loan amount |
Canara Bank |
5,000 to Rs. 20 lakhs |
7.65% p.a. onwards |
0.25% of the loan amount onwards |
Punjab National Bank |
25,000 to 10 lakhs |
8.75% p.a. onwards |
0.75% of loan amount |
IIFL Finance |
3,000 to Unlimited |
9.24% p.a. onwards |
Dependent on the scheme |
Rupeek |
No limit |
9.69% p.a. onwards |
Nil |
HDFC Bank |
25,000 to Unlimited |
9.90% p.a. onwards |
1.5% of the loan amount |
ICICI Bank |
10,000 to 1 crore |
11% p.a. onwards |
1% of loan amount |
Muthoot Finance |
1,500 to Unlimited |
12% p.a. onwards |
Shared at time of application |
Axis Bank |
25,001 to 25 lakhs |
12.50% p.a. onwards |
0.5% of the loan amount |
Fincare Small Finance Bank |
5,000 to 25 lakhs |
12.99% p.a. onwards |
Up to 0.5% of the loan amount |
A gold loan can be availed to meet urgent financial requirements by pledging gold, gold ornaments, gold jewellery, gold coins as collateral with the bank or lender. Banks and lenders charge interest on the loan borrowed and once the loan has been repaid in full, the gold items pledged by the borrower are returned. Although it is a secured loan, the interest rate on gold loans starts from 7.00% annually.