HDFC Bank Gold Loan Interest Rates

Apply for HDFC Bank gold loan online against your gold ornaments and gold coins. HDFC Bank Gold Loan Interest Rate starts from just 8% - 16.5% p.a. and tenure can be up to 24 months.


Key Features of HDFC Gold Loan

The key features of HDFC Gold Loan are:

  • Nature of facility: Both Term Loan and Overdraft facility is available.
  • Purpose of the loan: The loan can be used for personal requirements or business requirements. There is no restriction on the end use. At any time, any financial emergency arises, Gold Loans can be availed to deal with the situation.
  • Quantum of loan: The loan amount will be equivalent to the weight of gold pledged with a minimum of 10,000 in rural areas and 25,000 in other areas. The maximum Gold Loan is defined as per the maximum gold that is pledged with them.
  • Timeline: The documentation requirement is minimal and the loan is disbursed in just 45 minutes.
  • Security: The Gold Loan is given against the security of gold jewellery and gold coins
  • Interest: Interest is charged at 8% - 16.5% p.a. The existing customers of the bank with a good track record can avail a Gold Loan at concessional interest ate as decided by the bank on a case to case basis.
  • Repayment: The loan can be repaid between 3 months to 24 months. The loan can be paid in a lump sum at the end of the tenure as in the case of bullet payment or by way of EMI.
  • Margin: The margin is set at 25%

Also Check: HDFC CIBIL Score

Benefits of Taking the HDFC Gold Loan

The benefits of HDFC Gold Loan are as given below:

  • Disbursal of the loan is very quick. The loan can be availed the same day across the counter
  • Both term loan and overdraft facilities are available
  • Competitive rate of interest. Existing customers with a good relationship will be offered concession in interest rates.
  • No hidden charges.
  • The quantum of the loan is based on the purity of the loan also. Rate per gram considered to arrive at the loan amount varies with the purity. 18 carats to 24 carats gold ornaments and gold coins are accepted as security
  • All their rates and charges will be communicated up front in writing, along with the quotation. There is a good level of transparency regarding their rates and charges and you need not feel sceptical about the rates and charges.
  • The safety of the gold ornaments and coins pledged with them is ensured by keeping them in a safety vault.
  • Women beneficiaries are offered a lower rate of interest.

Types of HDFC Gold Loan Schemes

There are various types of HDFC Gold Loan Schemes and they are detailed below:

Agricultural Gold Loans:

  • This loan is given to farmers and agriculturists for expenses incurred for crop production and other agricultural allied activities. For this loan the farmer has to produce:
  • Proof of owning agricultural lands and engaged in farming activities, by way of land records
  • Proof for having utilised the loan for the purpose it was availed also has to be produced

Non-Agricultural Gold Loan:

  • This loan can be obtained by salaried persons, self-employed individuals/professionals, businessmen, students, and retired persons. The only requirement is that they should have gold to offer as security for the loan.
  • The purpose of the loan is not restricted. It can be used for any purpose except for any speculative purpose. The loan can be used for medical emergencies, wedding expenses, education expenses, to plan a holiday, for renovation repairs of the existing property.

Gold Loan with EMI option:

  • Under the scheme, the loan can be repaid in easy instalments
  • Both the principal and interest component have to be paid a month on month and the repayment will start from the month subsequent to the month of disbursement of the loan.
  • This facility is offered for a loan with more than 3 months repayment period
  • It is generally offered in case of a pre-approved loan to existing customers of the bank with a good track record.
  • The loan-to-value (LTV) set for this scheme is 75%, i.e., the loan will be with a margin of 25%. The loan only up to 75% of the value of the gold will be released.

Gold Loan with Bullet Repayment option:

  • Under this scheme, the borrower can pay the principal in a lump sum at the end of the tenure of the loan.
  • Normally the tenure of the loan with this option will be 3, 6, 9 and 12 months. This option is mainly for short term Gold Loans.
  • Interest will be calculated on a monthly basis. Only the interest has to be paid as and when due.
  • The LTV fixed for this scheme is 65%. This loan will be with a margin of 35%. Loan up to 65% of the value of the gold as assessed will be sanctioned.

Gold Loan with overdraft facility:

  • The loan under this scheme is revolving in nature. It means the entire loan will not be disbursed at a single time.
  • A credit limit will be fixed on the loan account to the extent of the security offered
  • The funds can be withdrawn and deposited any number of times
  • Interest will be charged only to the extent of the funds utilised. The interest will be calculated on the daily balance.
  • If there are any deposits made into the account, the same will be available for utilisation
  • This scheme is appropriate for businessmen who require funds for day to day operations
  • The margin set for this scheme is 25%
  • The overdraft facility can be renewed by paying renewal processing fees

Also Check: Lowest Gold Loan Interest Rate

Eligibility for HDFC Gold Loan

The following are the eligibility criteria for Gold Loan in HDFC bank .

  • The applicant should be of 18 years of age or above
  • The applicant should have a regular source of income
  • Salaried persons, self-employed individuals, students, retired persons, and businessmen are eligible for the loan.

Documents Required for HDFC Gold Loan

The documents required for HDFC Gold Loan are:

  • Gold Loan application
  • Driving Licence
  • Passport
  • Aadhaar Card
  • Voter's ID
  • PAN Card or Form 60

Interest Rates and Fees for HDFC Gold Loan

The rates and fees for HDFC Gold Loan apart from the interest are as detailed below:

Type of chargeAmount
Processing chargesUpto 1% of the loan amount + applicable GST
Pre-payment charges
  • 2% of the outstanding loan amount + applicable GST if closed before 3 months
  • 1% of the outstanding loan amount + applicable GST if closed before 6 months
Valuation charges
  • 250 + applicable GST if the loan amount is up to 1.5 Lakhs
  • 500 + applicable GST if the loan amount is over 1.5 Lakhs
Late payment charges2% per annum over and above the applicable interest rate
Stamp duty & other statutory chargesAs per the applicable law of the State
Renewal processing fees350 + applicable GST

Important Points to Remember while Taking HDFC Gold Loan

The points to remember while availing HDFC Loan are:

  • For arriving at the weight of the gold ornament pledged, the gems and stones studded will be excluded from the weight.
  • The rate applied is based on the purity of the gold ornament pledged. A 24-carat gold ornament will fetch a better loan amount than an 18-carat gold ornament.
  • Both hallmarked and un-hallmarked gold ornaments are accepted as security
  • The Indian Bullion and Jewellers Association (IBJA) will quote the rate on a daily basis. The ornaments are valued at the average rate for 30 days as quoted by IBJA as per RBI guidelines. The rate per gram of gold stipulated for granting the loan is based on the average rate for 30 days quoted by IBJA from time to time. If the purity of gold is less than 24 carats, then the gold will be valued proportionately.
  • A credit score of an applicant does not really matter to avail a Gold Loan. An applicant with a low credit score is also eligible for the loan.

Also Check: SBI Gold Loan Interest Rate

Get Gold Loan with No EMI Option from Rupeek

Rupeek Gold Loans are instant secured loans with no EMI option at interest rate starting at 8.88% p.a. You can avail of emergency loan ranging from Rs 50000 to Rs 20 Lakhs against gold jewellery, coins & ornaments. With bullet repayment option you repay entire loan at the end of the tenure.

HDFC Bank Gold Loan Interest Rates FAQs

How to apply for HDFC Gold Loan?

  • You can apply for a Gold Loan with HDFC Bank directly by visiting the nearest branch
  • You can also apply through the official website of the bank by filling an online application form. On completion of the application form and submitting online, the representatives of the bank will get in touch with you and help you complete the process.
  • Alternatively, you can call the HDFC Customer care request for a call back or SMS. You will either get a call or SMS from the bank's representatives and they will take you further from there.

What are the components that decide the value of the security offered?


The purity and weight are the two components that decide the value of the security. The purity of the gold accepted as security is 18 carats to 24 carats. The higher the purity the better the rate per gram will be. Gold coins only up to a weight of 50 grams can be accepted as security for a Gold Loan as per the guidelines of RBI.

How is the EMI calculated for HDFC Bank Gold Loan?


The formula to calculate Gold Loan EMI is EMI = {P x R x (1+R)^N}/{(1+R)^N-1}

In this formula:

EMI is Equated Monthly Instalment

P is principal or the sanctioned loan amount

R is the Rate of Interest. Interest should be the monthly rate

N is the tenure

What happens when the gold rate falls during the tenure of the loan?


HDFC obtains an application form wherein a declaration will be given by the borrower that in the event of a fall in the gold rate during the tenure of the loan bank can, with 7 days' notice stipulate for additional collateral security to accommodate the LTV requirement.

In the absence of additional security, the borrower can pay the amount required to accommodate the LTV requirement.

If the borrower fails to do either of the two then the bank has the authority to auction the security and adjust the proceeds towards the outstanding balance.

What is the advantage of HDFC Gold Loan?


The advantage of HDFC Gold Loan is that it offers varied repayment options and the customer can choose the option that is convenient. Repayment can be either by way of EMI wherein a stipulated amount as per the affordability of the borrower can be paid. The other option is payment of interest as and when due and the principal to be paid in a lump sum at the end of the tenure.