Best Gold Loan Bank in India
Gold loans have become an increasingly popular financial solution in India, offering quick access to funds by leveraging gold assets. As of 2025, numerous banks and financial institutions provide competitive gold loan offerings tailored to diverse customer needs. This guide delves into the top gold loan providers in India, examining their interest rates, loan amounts, processing fees, and unique features to help you make an informed decision.
Overview of Gold Loans in India
Gold loans are a widely used financial solution in India, allowing individuals to access quick funds by pledging gold jewelry or ornaments as collateral. With gold prices rising and the need for instant liquidity growing, gold loans are an attractive option for personal or business financing. Unlike traditional loans, they require minimal documentation, offer faster processing, and are accessible to borrowers with varying credit profiles.
Many banks and non-banking financial companies (NBFCs) in India provide gold loans, but finding the best gold loan bank depends on factors like interest rates, loan-to-value (LTV) ratio, and repayment flexibility. This guide explores top banks offering gold loans in India for 2025, helping you determine which bank is best for gold loan based on your needs.
Whether you need funds for an emergency, education, or business expansion, understanding the features of the best bank for gold loan can ensure you get favorable terms. Let’s dive into the details.
Comparison of Top Gold Loan Banks
To help you choose the best gold loan bank in India, here’s a comparison of key features:
| Bank | Interest Rate (% p.a.) | LTV Ratio | Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|---|
| SBI | 7.5%–8.5% | Up to 75% | ₹20,000–₹50 lakh | 3–36 months | 0.5% + GST |
| HDFC Bank | 8.0%–9.0% | Up to 75% | ₹25,000–₹75 lakh | 3–48 months | 0.75% + GST |
| ICICI Bank | 8.5%–9.5% | Up to 70% | ₹10,000–₹1 crore | 6–36 months | 1% + GST |
| PNB | 7.8%–8.8% | Up to 75% | ₹25,000–₹25 lakh | 6–36 months | 0.7% + GST |
| Axis Bank | 8.5%–9.5% | Up to 70% | ₹25,000–₹50 lakh | 3–36 months | 0.5%–1% + GST |
Note: Interest rates and terms may vary. Contact the respective bank for the latest details.
Which Bank is Best for Gold Loan
Based on interest rates, customer feedback, and loan features, here are some of the leading banks offering gold loans in India:
1. State Bank of India (SBI)
Overview: SBI, a trusted public sector bank, is often regarded as a top choice for gold loans due to its competitive rates and extensive branch network. It offers schemes for both personal and agricultural purposes.
Key Features:
- Interest Rate: 7.5%–8.5% per annum
- LTV Ratio: Up to 75%
- Loan Amount: ₹20,000 to ₹50 lakh
- Tenure: 3 months to 36 months
- Processing Fee: 0.5% of loan amount + GST
- Special Schemes: Lower rates for agricultural loans
Why Choose SBI? Its reputation and affordable rates make it a strong contender for those seeking a reliable gold loan provider.
2. HDFC Bank
Overview: HDFC Bank, a leading private sector bank, offers quick gold loans with digital processing, making it a popular choice for borrowers.
Key Features:
- Interest Rate: 8.0%–9.0% per annum
- LTV Ratio: Up to 75%
- Loan Amount: ₹25,000 to ₹75 lakh
- Tenure: 3 months to 48 months
- Processing Fee: 0.75% of loan amount + GST
- Special Feature: Online application and approval
Why Choose HDFC? Fast processing and high loan amounts make it ideal for those needing quick funds.
3. ICICI Bank
Overview: ICICI Bank provides flexible gold loan schemes with a focus on transparency, catering to both individuals and businesses.
Key Features:
- Interest Rate: 8.5%–9.5% per annum
- LTV Ratio: Up to 70%
- Loan Amount: ₹10,000 to ₹1 crore
- Tenure: 6 months to 36 months
- Processing Fee: 1% of loan amount + GST
- Special Feature: Partial prepayment without penalty
Why Choose ICICI? Its high loan ceiling and flexible repayment options suit diverse borrower needs.
4. Punjab National Bank (PNB)
Overview: PNB offers affordable gold loans, particularly for rural and semi-urban customers, with competitive schemes for urban borrowers as well.
Key Features:
- Interest Rate: 7.8%–8.8% per annum
- LTV Ratio: Up to 75%
- Loan Amount: ₹25,000 to ₹25 lakh
- Tenure: 6 months to 36 months
- Processing Fee: 0.7% of loan amount + GST
- Special Feature: Tailored schemes for farmers
Why Choose PNB? Low interest rates and specialized agricultural loans make it a great option.
5. Axis Bank
Overview: Axis Bank provides quick gold loans with attractive rates, catering to salaried and self-employed individuals.
Key Features:
- Interest Rate: 8.5%–9.5% per annum
- LTV Ratio: Up to 70%
- Loan Amount: ₹25,000 to ₹50 lakh
- Tenure: 3 months to 36 months
- Processing Fee: 0.5%–1% of loan amount + GST
- Special Feature: Instant approval for existing customers
Why Choose Axis? Its seamless digital process and quick disbursal make it a convenient choice.
How to Choose the Right Gold Loan Bank
Selecting the best bank for a gold loan involves evaluating several factors to ensure you get the most suitable terms:
- Interest Rates: Lower rates reduce borrowing costs. Compare rates to find a bank that offers competitive terms.
- Loan-to-Value (LTV) Ratio: The LTV ratio determines how much loan you can get against your gold. Banks offering up to 75% LTV, as per RBI guidelines, provide higher loan amounts.
- Processing Fees & Charges: Look for low processing fees, valuation charges, and minimal prepayment penalties to keep costs down.
- Loan Tenure: Choose a bank with flexible repayment periods that align with your financial goals. Longer tenures reduce monthly EMIs but may increase total interest.
- Disbursal Time: For urgent needs, prioritize banks with quick loan disbursal, often within hours of gold valuation.
- Reputation & Customer Service: Opt for a bank with a strong reputation and reliable customer support for a smooth borrowing experience.
- Gold Safety: Ensure the bank has secure storage facilities and insurance for your pledged gold to protect against loss or theft.
Eligibility and Documents Required
Gold loans have lenient eligibility criteria, making them accessible to a wide range of borrowers. Here are the typical requirements:
Eligibility Criteria
- Age: 18–70 years
- Nationality: Indian resident
- Gold Ownership: Applicant must own the gold being pledged
- Gold Purity: 18–22 carat gold (varies by bank)
Documents Required
- Identity Proof: Aadhaar card, PAN card, passport, or voter ID
- Address Proof: Aadhaar card, utility bill, or rental agreement
- Gold Ownership Proof: Purchase receipt (optional)
- Photographs: Passport-sized photos (if required)
Note: Requirements may vary by bank. Check with the specific institution for details.
Benefits of Gold Loans
Gold loans from top banks offer several advantages, making them a preferred financing option:
- Quick Disbursal: Funds are often available within hours of gold valuation.
- Minimal Documentation: Requires only basic KYC documents.
- No Credit Score Needed: Ideal for borrowers with low or no credit history.
- Flexible Use: Funds can be used for any purpose, from medical emergencies to business investments.
- Lower Interest Rates: Secured loans typically have lower rates than personal loans.
- No Prepayment Penalties: Many banks allow early repayment without extra charges.
FAQs
As of 2025, SBI and PNB stand out due to their low interest rates, starting at 7.5% and 7.8% per annum, respectively, and flexible terms.
Reputable banks store pledged gold in secure vaults with insurance. Choose a trusted bank to ensure safety.
Jana Small Finance Bank offers up to ₹4,219 per gram for 22-carat gold, while Bank of Maharashtra provides up to ₹6,510 per gram or 75% of market value, among the highest rates.
Yes, gold loans are secured by gold collateral, so banks and NBFCs like SBI, HDFC, and Muthoot Finance don’t require a credit score.
The maximum loan depends on gold value and LTV (up to 75%). ICICI Bank offers up to ₹2 crore, Muthoot Finance up to ₹5 crore, and SBI up to ₹50 lakh.
If you default, the lender may auction your pledged gold to recover the loan amount, including interest and penalties. Some offer restructuring options.
NBFCs (e.g., Muthoot, Manappuram) offer faster disbursal and higher LTV (up to 90%), but banks (e.g., SBI) have lower rates (7.5%–8.8%). Choose based on speed vs. cost.
Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.
Abhijeet Singh has comprehensive experience in business writing, content management, SEO, social media and user analytics. Key areas of expertise include stock markets and personal finance.