gold loan interest rate
When someone suddenly needs money, be it a medical emergency, children’s education, investment in business or home renovation, then gold loan becomes a great option. There is not much documentary hassle in this and you get the funds in a very short time.
Gold loan means that you pledge your gold jewelery or coins with a bank or NBFC (non-banking financial institution) and in return you get a loan of a fixed amount. This loan is for a period ranging from a few months to a year and you can repay it in easy installments or a lump sum.
Interest rates on gold loan in 2025
Now let’s talk about the real issue i.e. interest rates. The interest rates of different banks and financial institutions of the country till October 2025 are as follows:
Government Bank:
Private Bank:
NBFC (Non-Banking Institutions):
These rates are as of 07 October 2025 and are updated by Bank Bazaar.com. Rates may vary slightly depending on your credit history and purity of gold.
On which gold loan will one get gold loan?
For gold loan, you should have 18 to 22 carat gold jewellery. Apart from this, some banks also accept 24 carat coins, but their limit is up to 50 grams per person. Whereas gold idols, gold utensils, white gold, jewelery less than 18 carats and gold plated jewelery will not be accepted for gold loan. Along with this, some banks also do not accept Guinea and biscuits. Whereas if your jewelery has gems embedded in it, you can still get a loan but its value is reduced.
How much loan can one get against one gram of gold?
The loan amount depends on how much pure gold you have and what is its carat value. Generally banks offer “loan to value” (LTV) ratio of 75% to 90%. For example, if you have 20 grams of 22 carat jewellery, and the market price of gold is ₹5,500 per gram, then you can get a loan of around Rs 82,500 to Rs 99,000.