Bank of India Gold Loan Interest Rate
Bank of India offers a gold loan up to 85% of the pledged gold’s value (maximum Rs. 30 Lakhs). Bank of India gold loan interest rate varies between 8.35% to 9.05% p.a., depending on the activity for which the loan is being availed of. The BOI gold loan interest rate starts from 9.05% p.a. for Agriculture, 8.35% p.a. for MSME/OPS, and 8.60% p.a. for Food & Agro and Consumption/Non-Priority sector. Apart from the interest rate, a processing fee of up to a maximum of Rs. 1,500 will be charged.
Current BOI Gold Loan Interest Rate (2025)
The details of the current Bank of India gold rate of interest are mentioned below:
| Type of Gold Loan Scheme | Spread | Applicable Interest Rate |
| Agriculture | 1 Year MCLR | 9.05% p.a. |
| Food & Agro | RBLR (8.35%) + BSP (0.25%) | 8.60% p.a. |
| MSME/ OPS | RBLR | 8.35% p.a. |
| Consumption/Non-Priority | RBLR (8.35%) + BSP (0.25%) | 8.60% p.a. |
Compare BOI Gold Loan Interest with Other Lenders
Below is the comparison of the Bank of India gold rate of interest with the gold loan interest rates of other lenders. You can check the interest rates of various lenders to see which lender offers the best gold loan interest rates in India:
| Bank | Rate of Interest (p.a.) | Processing Fee |
|---|---|---|
| Bank of India | 8.35% - 9.05% | Up to Rs. 1,500 |
| Bajaj Finserv | 9.50% - 24% | 0.15% of the loan amount (minimum Rs. 99 & maximum Rs. 600 |
| Bank of Baroda | 9.90% - 10% | Nil to applicable charges + GST |
| Canara Bank | 9.10% onwards | 0.15% to 0.30% of the loan amount (minimum Rs. 125 & maximum Rs. 3,000) |
| HDFC Bank | 9.30% - 17.88% | Up to 1% of the loan amount + applicable taxes |
| SBI | 9% - 10.25% | Up to 0.50% of the loan amount (maximum Rs. 10,000) + applicable GST. |
| Indian Bank | 8.75% - 10% | 0.56% of the loan amount |
| ICICI Bank | 9.25% - 18% | Up to 2% of the loan amount |
| Kotak Mahindra Bank | 9% - 24% | Up to 2% of the loan amount + GST |
| Axis Bank | 17% - 19% | Up to 0.50% of the loan amount + GST |
How BOI Calculates Gold Loan Interest Rate
Bank of India typically uses a simple interest calculation method to calculate gold loan interest. For the calculation of the gold loan interest rate BOI multiplies the principal amount by the interest rate and the repayment tenure.
The formula is:
Interest Payable = (Principal Amount x Interest Rate x Loan Tenure) / 100.
- Principal Amount is the loan amount you get.
- Interest Rate is the annual percentage of rate charged by the bank on the gold loan.
- Loan Tenure is the period for which the loan is taken (usually expressed in years/ months).
Factors Influencing BOI Gold Loan Interest Rate
Below are some critical factors that can have an impact on your BOI gold loan interest rate:
- Credit score: The borrower’s credit score shows their creditworthiness and repayment capability. A good credit score means that they have made timely repayments of past debts without any defaults. Lenders often grant lower gold loan interest rates to borrowers with higher CIBIL scores.
- Benchmarking: Benchmarking of gold loan rates can be of two types, i.e., MCLR-linked lending rate and Repo Rate Lending Rate. Bank of India uses MCLR for calculating the Bank of India agriculture gold loan interest rate and RBLR for other schemes.
- Principal loan amount: The loan amount sanctioned to you plays an important role in determining the interest rate on the loan. A higher loan amount often results in an increase in interest to be paid by the borrower.
- Gold’s market value: The interest rate may also fluctuate depending on the BOI gold loan rate per gram today.
- Monthly income: Lenders will review your monthly income before approving your loan application at the subsequent interest rate. Usually, a higher income improves your chances of getting a lower gold loan interest rate.
Tips to Get Lower BOI Gold Loan Interest Rate
Below are some useful tips to get lower gold loan BOI interest rates:
- Get the proper evaluation of your gold to be pledged before applying for the loan. A high-purity gold (22 - 24 karats) can help you get better interest rates.
- Make sure you apply for a gold loan with a credible lender to get the best interest rate deal.
- Compare the BOI jewel loan interest rate with gold loan interest rates offered by other lenders.
- Apply for a lesser loan amount.
- Maintain a good credit score.
- Check out the overdraft facility as well. Here, you will be given an overdraft facility against your gold. You will have to pay interest only on the amount used. This option is ideal for self-employed as well as salaried individuals.
- Display a stable income and employment history.
- Check for interest rates at your current bank.
FAQs
The Bank of India gold loan interest rate for 1 lakh loan ranges from 8.35% to 9.05% p.a., depending on the purpose of availing the loan.
BOI gold interest rate varies between 8.35% and 9.05% p.a., depending on the type of gold loan scheme you want to apply for.
The Bank of India’s current gold loan per gram rate of interest is between 8.35% and 9.05% p.a., depending on the loan type and tenure
The maximum loan amount for BOI gold loans is up to 85% of the pledged gold’s value, subject to a maximum of Rs. 30 Lakhs.
Yes, you can prepay your BOI gold loan without any penalty or additional charges because BOI gold loans typically do not have prepayment penalties.
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