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Gold Loans Starting At 7% p.a.: Here Are The 10 Banks Offering The Lowest Rates

Team BankBazaar
·2-min read

High accessibility, competitive interest rates and quick loan disbursal process make gold loans an extremely popular financing facility in India. A gold loan could not just come to the urgent rescue of the cash-strapped but also help fulfil our critical life goals. They are also a good fit for those borrowers who have a poor credit score owing to which they might not qualify for an unsecured loan like a personal loan, and even if they do, the applicable interest rates are likely to be much higher than those offered to borrowers with credit scores over 750-800. Ever since the Reserve Bank of India directed lenders to increase the loan-to-value ratio threshold of gold loans from 75% to 90% in the wake of the Covid-19 pandemic, these loans have become an even more viable option for people struggling with cash-flow issues.

That said, before applying for a gold loan, check whether the loan amount you can get against your gold would be sufficient to meet your requirements, compare all the offers for the best repayment terms, get complete clarity about all the associated charges, and, most importantly, have a plan for timely loan repayment so that you do not lose a precious asset owing to default. And if you’re looking for a gold loan, here are the 10 banks currently offering the lowest gold loan interest rates in the country:

10 Banks Currently Offering the Lowest Interest Rates on Gold Loans

Bank Name

Lowest Advertised Interest Rate (in % p.a.)

Punjab & Sind Bank


Bank of India


State Bank of India


Canara Bank


Karnataka Bank


Indian Bank


UCO Bank


Federal Bank


Punjab National Bank


Union Bank


Disclaimer: Data collected from respective banks’ websites as on 19 Nov 2020. Lowest rate offered by the banks is considered in the table. Data compiled by Photo: is a neutral online marketplace for loans, credit cards and more.