Gold has always been close to our hearts. Be it weddings, festivals, or a simple investment, it holds emotional and financial value. But what happens when you are in urgent need of money? That’s when gold loans come to the rescue.
A gold loan is one of the easiest and fastest ways to get funds in India. All you have to do is pledge your gold ornaments, and in return, you get cash. Simple, right? But here’s the real catch, how do you find the best gold loan company with the lowest interest rate?
In this blog, we will guide you step-by-step on how to make the smartest loan decision. We will also share the current gold loan interest rate, compare top lenders, and help you understand what affects the gold loan per gram value.
Let’s dive in!
What Is a Gold Loan and How Does It Work?
A gold loan is a secured loan where you give your gold jewellery to a lender, and they give you money in return. The lender keeps your gold as collateral until you repay the loan.
Sounds easy? That’s because it is!
Most banks and NBFCs (Non-Banking Financial Companies) offer gold loans. You can borrow up to 75% of the market value of your gold, depending on the current gold loan rate today and the gold interest rate.
Key Features:
- Quick disbursal, sometimes in just 30 minutes!
- No income proof required
- Flexible repayment options
- Loan amount usually ranges from ₹10,000 to ₹1 crore
Why Interest Rate Matters So Much
Interest rate decides how much extra you will pay on top of the loan amount. Even a small difference in the gold loan interest rate can make a big impact.
For example, a ₹1,00,000 gold loan for 12 months at 9% will cost you ₹9,000 in interest. But the same loan at 13%? That’s ₹13,000—₹4,000 more!
So, looking for a low interest gold loan is not just smart, it’s necessary.
Factors That Affect Gold Loan Interest Rate
Before we compare lenders, let’s understand what actually affects the gold loan interest you’ll be offered:
- Loan Amount – Higher amounts often get better rates.
- Loan-to-Value (LTV) Ratio – If you borrow less against your gold’s value, the rate can be lower.
- Tenure – Shorter durations usually have lower rates.
- Customer Profile – Your relationship with the bank can influence rates.
- Type of Lender – NBFCs might offer more flexibility but at higher rates than banks
Read More: Debt vs. Equity: Which Funding Option is Right for Your Business?
Gold Loan Interest Rate All Bank – A Comparison (2025 Data)
Here’s a quick comparison of gold loan interest rates from top Indian banks and NBFCs (as of May 2025):
| Lender | Gold Loan Interest Rate (p.a.) | Processing Fees | Max LTV |
| SBI | 8.50% – 9.75% | ₹500 + GST | 75% |
| HDFC Bank | 9.00% – 15.00% | 1% of loan amount | 75% |
| ICICI Bank | 10.00% – 16.00% | ₹999 flat | 75% |
| Axis Bank | 9.50% – 17.00% | 1% or ₹1000 minimum | 75% |
| Muthoot Finance | 12.00% – 24.00% | NIL to 1% | 75% |
| Manappuram Finance | 12.00% – 26.00% | NIL to 1% | 75% |
| Federal Bank | 8.90% – 11.50% | ₹500 – ₹1,000 | 75% |
| IIFL Finance | 11.00% – 18.00% | Up to 1% | 75% |
Tip: Always check the latest gold loan interest rate of all banks before applying.
Gold Loan Per Gram: What Is It and Why It Matters
The amount you get per gram of gold depends on two things:
- Gold price today
- Lender’s internal policy
For example, if gold is ₹6,000 per gram and the lender offers 75% LTV, you’ll get ₹4,500 per gram. But if another lender offers ₹4,700 per gram, that’s better for you!
So, don’t just look at the lowest gold loan interest rate, also check who’s giving the highest gold loan per gram.
How to Choose the Best Gold Loan Company
Here’s a checklist to find the best gold loan company for your needs:
- Compare Interest Rates: Always compare rates from at least 3–5 lenders. Use online tools or visit their websites. Look for terms like gold loan interest, low interest gold loan, or gold loan interest rate all banks.
- Check Gold Loan Rate Today: Gold prices change every day. Make sure the lender updates their gold loan per gram rate based on current market prices.
- Look at Charges: Watch out for processing fees, valuation charges, foreclosure penalties, etc. Some lenders offer zero processing fees for limited periods.
- Read the Fine Print: Go through repayment terms, penalties, and auction rules if you miss EMIs.
- Choose Trusted Names: Prefer well-known names like SBI, HDFC, Muthoot, or Manappuram. A reliable company means your gold is safe.
How to Apply Online for a Gold Loan
Applying for a gold loan online is easy these days. Here’s how:
Step-by-Step Process:
- Visit the lender’s official website.
- Fill out the gold loan form.
- Provide basic KYC (Aadhaar, PAN, etc.)
- Wait for a representative to call or visit.
- Your gold is valued and kept safely, and the amount is transferred to your bank account.
Many lenders now even provide doorstep gold loan services. Super convenient!
Real Talk: Bank vs NBFC – Which Is Better?
Both have pros and cons.
Banks:
- Lower interest rates
- Safer and more regulated
- Longer tenures available
NBFCs:
- Quick approvals
- Less paperwork
- Higher gold loans per gram sometimes
If you are looking for the lowest gold loan interest rate, banks are usually better. But if you want fast service and flexibility, NBFCs might suit you more.
Pro Tips to Get the Best Deal
Here are some insider tips to get the best gold loans with the lowest cost:
- Negotiate the interest rate if you have a good credit history.
- Borrow only what you need to keep interest low.
- Choose a shorter tenure if you can repay quickly.
- Look for special offers during festivals or salary account holders.
- Use an online gold loan EMI calculator before applying.
Final Thoughts
Gold loans are an excellent way to get instant funds without selling your beloved jewellery. But to make it truly worth it, you need to find the best gold loan company that gives you a good amount per gram, charges low fees, and most importantly, offers the lowest gold loans interest rate.
Don’t rush. Compare well, negotiate smartly, and pick a lender who values your gold as much as you do.
