Best Gold Loan Banks

Below is the list of best loan against gold providers in India along with the features of their gold loan schemes:

1. Axis Bank

• Axis Bank offers a loan amount up to Rs. 25 Lakhs against gold ornaments and coins. 
• The loan can be repaid in a tenure of 6 to 36 months.
• Axis Bank gold loan eligibility is simple and easy to meet. 
• Axis Bank gold loan interest rate starts from just 17% p.a. 
• The processing fee is up to 0.50% of the loan amount.
• The loan can be foreclosed anytime after a lock-in period of 6 months without any prepayment charges. 
• You get a chance to earn 150 points on the disbursement of your gold loan.

2. Bajaj Finserv 

• You can obtain a loan amount of up to Rs. 2 Crores as a Bajaj Finserv gold loan.
• Bajaj gold loan interest rate varies between 9.50% to 28% per annum.
• The processing fee is just Rs. 99 (inclusive of applicable taxes).
• Bajaj Finserv is one of the best gold loan banks as there are no part-prepayment and foreclosure charges.
• The loan can be repaid within a tenure of 36 months.
• Bajaj Finserv offers a complementary gold insurance policy for securing pledged gold items against any theft or misplacement.   

3. Bank of Baroda

• Bank of Baroda gold loan is offered as a Demand Loan, Overdraft and EMI scheme.
• Maximum loan amount offered is up to Rs. 50 Lakhs per customer.
• The tenure is minimum of 12 months and maximum of 36 months for the EMI scheme.
• Bank of Baroda gold loan interest rate is 8.85% p.a. till 31.03.2023.
• The bank does not charge any processing fee for loans up to Rs. 3 Lakhs.      
• There are no preclosure and prepayment charges.

4. Bank of India

• Loan amount available up to 85% of pledged gold’s value.
• The Bank of India gold loan interest rate starts from just 8.45% p.a.
• A processing fee of up to Rs. 1000 is charged.   
• These loans are processed very quickly as they do not need any documentation. 
• Bank of India doesn’t require the borrower to have a CIBIL score or income proof.
• Bank of India gold loan is available to anybody aged above 18 years.

5. Canara Bank

• The Canara Bank gold loan can be availed of to meet medical expenses, any unforeseen commitment or contingencies, etc.
• Minimum loan amount available is Rs. 5,000 and maximum up to Rs. 35 Lakhs. 
• Currently, Canara Bank gold loan interest rate is 9.15% p.a.
• The loan can be availed of as a Single Transaction Limit or an Overdraft.
• The loan can be obtained against the pledge of gold ornaments/jewellery or specially minted gold coins sold by banks.
• Canara bank offers multiple types of gold loans, including Swarna, Swarna Express, and Overdraft Facility

6. Federal Bank

• Canara Bank gold loan can be availed for personal, business and agricultural purposes
• You can avail of a minimum loan amount of Rs. 1,000 and the maximum gold loan amount available is up to Rs. 1.5 Crores.
• Federal Bank gold loan interest rates start at 8.64% p.a.onwards.
• You will be required to pledge your 22-carat gold ornaments to avail of the loan.
• The processing fee is up to 0.80% of the sanctioned loan amount, depending on the scheme.
• You can partially prepay your gold loan or foreclose it completely with zero additional charges. 

7. ICICI Bank

• ICICI Bank gold loan is offered against the value of gold mortgaged by the borrower.
• The bank offers loan amounts between Rs. 50,000 to Rs. 1 Crore.
• Repayment tenure ranges from 6 months to 12 months, depending on the loan amount.
• ICICI gold loan interest rate ranges from 10% to 19.8% p.a. 
• Processing fee charged is 1% of the sanctioned loan amount.

8. IIFL Finance

• You can avail of a maximum loan amount of 75% to 90% of domestic physical gold’s carat value and the current market value.
• The repayment tenure of IIFL gold loans varies between 1 to 5 years.
• IIFL gold loan interest rate varies between 9.96% and 27% p.a. according to the loan amount and repayment frequency.
• The processing fee for IIFL gold loans ranges from 0% to 3% of the loan amount, depending on the scheme availed.
• The borrower also has to pay MTM charges of Rs. 500 for the evaluation of an asset to reflect its current market rate.

9. Indian Bank

• Indian Bank gold loan can be used for domestic needs, consumption, medical expenses,  family functions, or any bankable activity. 
• The loan can be repaid in Bullet Repayment or Monthly Repayment method.
• The loan amount available is up to 70% of the market value of the pledged jewels or per gram advance value of jewels, whichever is lower. The maximum loan amount offered is up to Rs.10 Lakhs per borrower
• Maximum tenure for repayment is up to 12 months for Bullet Repayment and 35 months for Monthly Repayment.
• Indian Bank gold loan interest rate starts from 8.25% p.a., and the processing fee is 0.50% on loan amount

10. Karnataka Bank

• Karnataka Bank offers loan amount of up to Rs. 25 Lakhs against the pledge of gold ornaments.
• Karnataka Bank gold loan interest rate starts from 9.33% p.a. for KBL-Agri Gold Loan, 9.63% to 9.95% p.a. for General Gold Loan, and 9.88% p.a. for KBL GOLD en CASH-OD.
• The tenure for repayment varies from 6 months to 12 months.
• No processing charges are levied for advances against gold up to Rs. 50,000 and for loans above that, a processing fee of 0.25% of the loan amount (minimum Rs. 250) + tax is applicable.
• It is among the best gold loan banks and offers multiple repayment options to choose from.

11. Muthoot Finance

• Muthoot Finance offers a minimum gold loan amount of Rs. 1,500, and there is no limit on the maximum loan amount. 
• Prepayment and part payment options are available.
• Muthoot Finance gold loan interest rate ranges from 12% to 27% p.a., depending on the scheme type, gold loan per gram, and other factors.
• Processing fee is 1% of the loan amount.
• Multiple schemes available, including Muthoot Ultimate Loan, Rural Gold Loan, Muthoot OnePercent Loan, Muthoot Delight Loan, Muthoot Highvalue Plus Loan, and so on.
• Online Gold Loan (OGL) facility is available.
• Repayment tenure varies between 7 days to 36 months.
• Free insurance facility available for pledged gold ornaments.

12. Punjab National Bank (PNB)

• These loans can be availed of as a Demand Loan or as an Overdraft Facility. 
• You can avail of a minimum of Rs. 25 000 and a maximum of Rs. 25 Lakhs.
• The PNB gold loan interest rate starts from 9% p.a.
• The margin requirement is 30% for Demand Loan - Bullet Repayment, 25% for Demand Loan - EMI Based, and 25% for Overdraft. 
• These loans can be availed of against the pledge of gold jewellery or ornaments.
• Repayment tenure is a maximum of up to 12 months.
• The processing fee is 0.30% of the loan amount + GST or Rs. 500 + taxes applicable, whichever is higher.

13. State Bank of India (SBI)

• SBI gold loan amount can be utilised for education, marriage, vacation, medical treatments, and other financial needs. 
• You can get a loan amount between Rs. 20,000 to Rs. 50 Lakhs from SBI as a gold loan. 
• The margin requirement for an SBI gold loan is 25% to 35%.
• SBI gold loan interest rates range from 8.55% to 8.65% p.a., depending on the sheme type.
• The processing fee for the SBI gold loan is nil till 31.01.2023..
• The repayment can be done within a tenure of 3 to 36 months, depending on the scheme and payment method chosen by the borrower. 
• SBI also provides the SBI Realty Gold Loan scheme to its existing as well as new housing loan borrowers. The features of this product are similar to the SBI Personal Gold Loan.

14. UCO Bank

• UCO Bank gold loan can be used for activities like agriculture, small business, retail trade, education, housing, MSME, etc.
• The maximum amount of UCO gold loan that can be sanctioned per gram standard gold is decided by the bank Head Office fortnightly and is then communicated to the zones/branches.
• The loan is offered against gold ornaments and coins. 
• Borrowers have to arrange a margin of 25% to 40% on the market price of the gold.
• UCO Bank offers the lowest gold loan interest rate varying between 7.40% to 7.90% p.a., depending on the scheme type, margin offered, and other factors.

15. Union Bank of India

• Union Bank of India gold loan is offered for agricultural needs, day-to-day working capital requirements of a business, petty trade, business equipment purchase, furnishing of business premises, furniture purchase, fixtures, or any unforeseen expenses. 
• You can avail of a maximum amount of Rs. 20 Lakhs for priority sector loans, including agriculture purposes and Rs. 25 Lakhs for non-priority sector loans.
• The Union Bank gold loan interest rate ranges from 8.25% and 10.15% per annum, depending on the loan type, amount, and other factors. 
• Rate of interest for gold below 22 Karat and up to 18 Karat will be applicable 0.25% higher.
• Union Bank of India charges a processing fee on the sanctioned loan limit as per the extant guidelines.
• Repayment tenure can be up to 3 years.

16. HDFC

• The bank offers a loan amount of up to Rs. 1 Crore. 
• HDFC offers one of the best gold loan interest rates ranging from 7.60% to 17.05% p.a.
• Processing Charges for HDFC gold loan is 1% of the disbursal amount.
• The loan can be repaid within 3 to 24 months tenure.

Below is the comparison between features offered by the best gold loan banks available in India.

If you are applying for a gold loan for the first time, make sure you consider the following important things:

• Borrow from a best gold loan bank or NBFC only.
• Choose a repayment tenure that you are comfortable with.
• Keep all the documents required for gold loan ready before visiting the bank branch. Look at the valuation of gold items to be pledged by you.
• Compare gold loan interest rates of all top banks and NBFCs.
• Use the gold loan calculator to know your gold loan amount eligibility.
• Check out multiple repayment options.