A gold loan is a type of secured loan where individuals pledge their gold jewellery or coins to a bank or financial institution in exchange for money. It is one of the fastest and most convenient ways to get funds as the value of the loan depends on the gold deposited. Borrowers then repay the amount along with an interest charge known as the gold loan interest rate which in India generally ranges between 8 per cent and 27 per cent annually. Repayment options are flexible with some banks allowing monthly instalments while others permit a lump-sum payment at the end of the loan term. Gold loan interest rates by top banks in India (2025) Interest rates loan tenure and processing fees vary from bank to bank. Interest rates range from 8.05% to 17.86% p.a. depending on the bank loan amount purity of gold and loan tenure. Some banks have the lowest rates starting around 8%–8.50% especially in public sector banks. Higher rates (up to  17.86%) tend to apply to loans with longer tenures or smaller gold quantities or from private banks. Below is a comparison of gold loan interest rates in 2025 along with details on tenure processing charges and loan limits offered by leading banks: Bank Interest Rate (p.a.) Loan Tenure Processing Fee Loan Limit SBI 8.75% onwards Up to 36 months 0.25% of loan amount Rs. 20000 – Rs. 50 Lakhs Canara Bank 8.75% onwards Up to 12 months Up to ₹2750 + GST Up to Rs. 5 Lakhs Union Bank of India 9.10% – 9.35% Up to 12 months 0.50% of loan amount + GST Up to Rs. 50 Lakhs Indian Overseas Bank 8.20% – 11.60% Up to 12 months Varies by loan amount Rs. 25000 – Rs. 50 Lakhs PNB 8.35% onwards 12 months 0.30% of loan amount + GST Rs. 25000 – Rs. 25 Lakhs Karnataka Bank 10.03% – 10.48% Up to 12 months NIL Up to Rs. 50 Lakhs Bank of Baroda 9.00% onwards Up to 36 months Applicable charges + GST Up to ₹50 Lakhs HDFC Bank 9.30% – 17.86% 6 to 42 months Up to 1% of disbursal amount + Taxes Rs. 25000 – Rs. 1 Crore Federal Bank 9.99% onwards Up to 12 months NIL Rs. 3000 – Rs. 1.5 Crore Central Bank of India 8.05% – 8.35% Up to 12 months 0.25% of loan amount + GST Rs. 10000 – Rs. 40 Lakhs Bank of India 8.60% – 8.75% Up to 12 months Up to Rs. 1500 Rs. 20000 – Rs. 30 Lakhs ICICI Bank 9.15% – 16.75% Up to 12 months Up to 2%* of loan amount Up to Rs. 2 Crores Axis Bank 9.75% – 17.00% 6 to 36 months 0.5% of loan amount + GST Rs. 25001 – Rs. 40 Lakhs Gold Loan Interest Rates provided by top 5 non-banking institutions in India NBFC Interest Rate (p.a.) Loan Tenure Processing / Other Fees Muthoot Finance ~ 12% to ~ 22% Up to 36 months ₹100 to ₹1000 depending on loan size Manappuram Finance ~ 9.90% to ~ 21.67% Roughly 3 to 12 months Small flat fee or minimal charge plus taxes IIFL Finance ~ 11.5% to ~ 27% Up to 24 months Up to ~ 2% of loan amount for processing Bajaj Finserv ~ 9.50% onwards Up to 12 months ~ 0.15% of loan amount (sometimes more depending on region / gold purity etc.) Other NBFCs (smaller / newer) ~ 10-24% depending on NBFC & risk Typically shorter tenures (3-12 months) Varies (flat amount or % of loan) Eligibility for a Gold Loan The exact eligibility criteria for a gold loan may differ from one lender to another so it’s always best to check the lender’s official website before applying. However most banks and NBFCs in India follow some common requirements: The applicant must be at least 18 years old.  The borrower must pledge gold ornaments or articles as collateral. The pledged gold should typically be of at least 18 carats or higher. Some lenders may also consider factors like income stability or repayment capacity but these are usually secondary since the loan is fully secured against gold.