Is Your Gold Loan
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Banks offer gold loans from 8.5% p.a. Many Indians pay far more. Check your rate in seconds — free, no login.
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🥇 Gold Loan Breakdown
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RBI-based benchmarks
Gold loan benchmarks sourced from RBI data and lender rate cards. Updated regularly.
Common questions about gold loan rates
What is a fair gold loan interest rate in 2026?
PSU banks like SBI and Canara Bank offer the cheapest gold loans, typically 8.5% to 9.5% per annum. Private banks run 9.5% to 13%. NBFCs like Muthoot Finance and Manappuram trade speed and convenience for a much higher rate — sometimes up to 24% — even though the loan is secured against the same gold either way.
How much can I borrow against my gold?
RBI rules cap the loan-to-value (LTV) ratio at 75% of your gold's market value for most loans, rising to 85% for smaller loans under ₹2.5 lakh. If a lender is offering you meaningfully less than that against the same gold, it's worth asking why, or comparing with another lender.
Why do banks offer lower gold loan rates than NBFCs?
Banks have a lower cost of funds and typically ask for more documentation and a slightly longer disbursal time. NBFCs like Muthoot are built for speed — often 30 to 60 minutes for disbursal — and that convenience premium is baked into the higher rate. If you're not in a rush, a PSU bank almost always beats an NBFC on rate for the same gold.
What happens if I can't repay a gold loan?
Unlike unsecured loans, the lender can auction your pledged gold to recover the outstanding amount if you default, after following the notice process required by RBI guidelines. This is exactly why the interest rate matters so much here — you're not just protecting your CIBIL score, you're protecting the actual gold.
Can I switch my gold loan to a cheaper lender?
Yes — gold loan balance transfers are common and relatively simple since the collateral (your gold) just moves custody from one lender to the new one. If you're on an NBFC rate above 18-20% and qualify for a PSU bank's documentation requirements, switching can be worth thousands in saved interest even on a modest loan amount.
Gold loan lender pages
Muthoot Finance is India's largest gold loan NBFC. Disbursal in 30–60 minutes at 5,000+ branches. Rates from 10.50%. See the full breakdown including charges and who it suits.