Gold at Rs 13,400+ per gram — highest ever! Borrow more than before at lowest rates. SBI gold loan from 8.25% · Muthoot from 12% · HDFC from 9.0% · New RBI LTV rules give 85% loan on gold for amounts up to Rs 2.5 lakh · Interactive gold loan calculator · Complete comparison of banks vs NBFCs.
🥇 Why gold loans are booming in 2026: Gold price has crossed Rs 13,400 per gram — an all-time high. This means the same jewellery that got you Rs 75,000 last year now gets you Rs 95,000+! Gold loans are the cheapest way to borrow in India — rates start at just 8.25% vs 11-18% for personal loans. Plus no credit score required, instant approval and you get your gold back on repayment.
Enter your gold weight and purity to calculate the maximum loan amount you can get today:
Banks offer the lowest gold loan interest rates in India. Processing is slightly slower than NBFCs but you save significantly on interest. All banks follow RBI LTV norms strictly.
| Bank | Interest Rate | Max Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| SBI Lowest Rate | 8.25% - 8.70% | Up to Rs 50L | Up to 3 years | Nil up to Rs 3L |
| Punjab National Bank | 8.75% - 9.00% | Up to Rs 25L | Up to 2 years | 0.70% + GST |
| Canara Bank | 9.00% - 9.25% | Up to Rs 35L | Up to 2 years | 0.50% |
| Union Bank of India | 9.00% - 10.40% | Up to Rs 20L | Up to 2 years | 0.50% |
| Bank of Baroda | 9.15% - 9.50% | Up to Rs 25L | Up to 2 years | 0.50% |
| ICICI Bank Best Private | 10.00% - 11.00% | Up to Rs 1 Cr | 6 months - 1 year | 1% |
| HDFC Bank | 9.00% - 16.00% | Up to Rs 75L | 6 months - 4 years | 1% |
| Axis Bank | 13.50% - 16.95% | Up to Rs 20L | 6 months - 3 years | 1% |
| Federal Bank | 8.99% - 11.00% | Up to Rs 1.5 Cr | Up to 2 years | 0.50% |
| Karnataka Bank | 9.62% onwards | Up to Rs 1 Cr | Up to 2 years | 0.50% |
NBFCs charge higher interest than banks but offer unmatched speed — money in minutes! They have more branches in smaller cities and rural areas. Best for urgent cash needs.
| NBFC | Interest Rate | Max Amount | Tenure | Disbursal Time |
|---|---|---|---|---|
| Muthoot Finance Fastest | 12% - 24% | No limit | Up to 1 year | Minutes |
| Manappuram Finance | 12% - 26% | No limit | Up to 1 year | Minutes |
| IIFL Finance | 9.24% - 24% | Up to Rs 50L | Up to 3 years | 30 minutes |
| Bajaj Finance | 8.25% - 16% | Up to Rs 2 Cr | Up to 2 years | Same day |
| Rupeek | 8.88% onwards | Up to Rs 1.5 Cr | Up to 1 year | Doorstep |
| HDFC Credila | 11% - 16% | Up to Rs 50L | Up to 2 years | 1-2 days |
RBI introduced a new tiered LTV structure in 2026 — small borrowers now get a higher loan percentage on their gold value:
Tip: Gold price in May 2026 is Rs 13,400+ per gram for 24K. For 22K jewellery multiply by 91.6%. Example — 20 grams of 22K gold = 20 x 13,400 x 0.916 = Rs 2,45,488 value. At 85% LTV you get Rs 2,08,665 loan. Compare this with last year when same gold would have gotten only Rs 1.5-1.6 lakh!
| Factor | Bank | NBFC |
|---|---|---|
| Interest Rate | 8.25% - 11% | 12% - 26% |
| Disbursal Speed | 30 min - 2 hours | Minutes! |
| Branch Network | Good in cities | Excellent — rural areas too |
| Documentation | Moderate | Minimal — just ID proof |
| CIBIL Score Needed | Not required | Not required |
| Max LTV (small loans) | 85% | 75% |
| Bullet Repayment | Available at some | Widely available |
| Choose if | Cost is priority | Speed is priority |
Collect your gold jewellery or ornaments. Most lenders accept 18K, 22K and 24K gold. Coins and bars accepted by some lenders. Gold should be your own property — no borrowed jewellery.
You need only: Aadhaar card, PAN card, one passport photo. No income proof, no salary slip, no ITR — gold is your collateral. This is what makes gold loan so easy!
For banks — visit nearest branch or apply online (SBI, HDFC, ICICI all have online gold loan). For Muthoot/Manappuram — walk into any branch. For Rupeek — apply online and agent comes home!
Lender's appraiser tests your gold purity using a stone test or XRF machine (non-destructive). They calculate value at current market rate and offer you the loan amount based on LTV ratio. Negotiation is possible!
Once you sign the agreement, money is transferred to your bank account (or cash for small amounts). Your gold is kept in the lender's secure vault. On full repayment, get your gold back in the same condition.
Important: Always get a receipt for the gold you pledge. Note the exact weight and purity mentioned in the receipt. Check the lender's vault security and insurance before handing over your gold. Never pledge ancestral jewellery you cannot afford to lose in case of default.
Our banking experts will help you get the lowest gold loan rate from the right lender for your needs — completely free.
Get Free Gold Loan Advice Personal Loan RatesDisclaimer: Gold loan interest rates shown are as of May 2026 and are subject to change without notice. Gold price of Rs 13,400/gram used for calculations is approximate and may vary daily. LTV ratios are as per RBI guidelines. Actual loan amount depends on lender's gold valuation at time of application. FinMandi is not a lending intermediary. Please verify all rates directly with the lender before applying. This article is for educational purposes only.