High availability of household gold, relatively lower interest rates than unsecured loans like a personal loan, possibility of quick and hassle-free loan disbursal and lesser reliance on the borrower’s credit score make gold loans one of the most popular financing facilities in our country. These loans could help in the fulfilment of our critical life goals but also come to our rescue during a financial emergency. That being said, before applying for a gold loan, ensure the loan amount sanctioned would be enough to meet your financing requirements, compare your options across various lenders to find a deal with the best repayment terms and have a thorough repayment plan to avoid additional penalties and the potential loss of a precious asset.
So, if you’re planning to take a gold loan, you might want to check out our list of gold loan interest rates currently being offered by some of the leading banks and non-banking financial companies (NBFC) in our country. We have also provided indicative EMIs for Rs.5 lakh gold loans taken for a tenure of 3 years by each of the lenders mentioned in the table below. Do note, we have only considered the lowest advertised gold loan interest rates for each lender, have not included processing fee or any other charges for EMI calculation, and the interest rate applicable to you could be higher depending on your loan amount, income, LTV ratio, loan tenure or any other terms and conditions of your chosen lender.
Interest Rates and Indicative EMIs for Rs.5 lakh Gold Loans With 3-year Tenures
Lowest Advertised Interest Rate (in % p.a.)
Punjab & Sind Bank
Bank of India
State Bank of India
Punjab National Bank
Bank of Baroda
Indian Overseas Bank
Karur Vysya Bank
South Indian Bank
Disclaimer: Interest rates on gold loans for all listed (BSE) public and private banks and selected NBFCs have been considered for data compilation. Banks for which data is not available on their website are not considered. Data collected from respective bank’s website as on May 4, 2021. The lowest rate offered by the banks/NBFCs have been considered in the table. The EMI is calculated on the basis of interest rate mentioned in the table for Rs.5 lakh loan with tenure of 3 years (processing fee and other charges are assumed to be zero for EMI calculation). *IRR for Qtr January to March, 2021.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.