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Gold Loan

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    Gold Loan Key Features – Apply Now!

    Gold Loan Interest Rate 7.11% per annum
    Gold Loan Per Gram Rate Per Gram Today is ₹ 5,032
    Gold Loan Amount Up to Rs. 1 Crore (With Income Proof)
    Gold Loan Processing Fee 1.50% of the Principal Loan Amount
    Gold Loan Prepayment Charges 2%+GST (Within 3 Months), 0 (After 3 months)
    Gold Loan Repayment Tenure 3 Months to 24 Months
    Gold Loan Repayment Scheme Bullet Payment Scheme, Overdraft Scheme


    Gold is one of India’s most treasured and celebrated metals. An ancient tradition of our society is buying and gifting gold. The Loan Against Gold provider, however, has changed the state of affairs of how humans use this metal. Nowadays, people buy gold to solve financial challenges in life.

    HDFC Gold Loan Interest Rate

    7.00% per annum

    Processing Fee

    1.50% of the Principal Loan Amount

    Prepayment/Foreclosure Charges

    2%+GST (Within 3 Months), 0 (After 3 months)

    Valuation Fee

    Rs 250 for a loan up to Rs 1.5 lacs and Rs 500 for a loan over and above Rs 1.5 lacs

    Late Repayment Charges

    2% p.a. + Applicable rate of interest.

    Renewal Processing Fees

    Rs 350 + GST

    What is a Gold Loan?

    In the banking industry, Gold Loan is the fastest growing financial service. Most people have gold ornaments that are actually kept at home or in bank lockers. Loan vs. Gold thus gives people the ability to unleash the value of this precious metal by making use of a gold loan against it.

    In comparison to other services like a personal loan or home loan, the Gold Loan Interest Rate is also very fair and lower. In addition, the procedure is very simple and hassle-free. In return for the sum of credit, the applicant simply has to put gold ornaments in the deposit. The bank returns the gold ornaments in the same form to the customer when the loan is repaid by the borrower. There are numerous banking and non-banking firms where a client can reach out for a gold loan.

    *You just have to fill in the above form to get cash at the comfort of your home and let us take your stress away from using a Loan Against Gold.

    India has approximately 10% of the entire world’s total gold capital. The explanation is that there are gold ornaments for the majority of Indians. Loan given against Gold is a service that enables individuals against their Gold Ornaments to get cash. It’s really quick to use the Gold Loan form.

    How does Gold Loan work?

    • In return for the loan sum, the borrower literally has to pledge gold jewellery to the lender. In terms of weight and purity, the in-house jewellery valuer tests your gold jewellery after you carry your jewellery to the bank.
    • Then the banks offer the loan seekers money equal to approximately 70 per cent-75 per cent of the value of the guaranteed gold, according to the gold value.
    • Now, the bank is in full ownership of your gold jewellery before the loan balance is fully repaid.
    • Finally, the bank will refund the gold in the same form to the customer when you repay the entire loan sum.

    This is the full Loan Against Gold service operation. Therefore, as the bank is totally concerned about the quality and quantity of gold, the documents necessary are very limited.

    Gold Loan Features:

    • It is a fully secured loan that, relative to other forms of loans, makes the rate of interest much lower.
    • The interest rate can decrease to as low as 8 per cent for gold loans for agricultural purposes.
    • Identity evidence and address evidence are the minimum documents necessary for a gold loan to be used.
    • The loan will be disbursed in approximately a few hours.

    What is Gold Loan Interest Rate?

    Loan Against Gold is a service at the fairest rate of interest that gives its customers money. Loan Against Gold Interest Rate is slightly lower and equal compared to other services such as Personal Loan and Home Loan. It begins at 9.99% per annum on average and can reach up to 24% per annum. Different banks and NBFCs provide clients with different interest rates.

    *Read more about Gold Loan Interest Rate and compare them. 

    How to Calculate Gold Loan Interest Rate?

    The interest rate is the amount attributable to the loan amount. The interest rate of the gold loan normally depends on the factors listed below:

    • Internal / External Customer: If the loan borrowers have a bank account from which they want the loan to be used, then these customers are known as internal customers. A discount on the interest rate priced by the borrower is given to internal customers.
    • Loan amount: The loan amount is the largest factor deciding the interest rate to be charged on the borrower. For loans with lower amounts, the Gold Loan Interest Rate is greater. Therefore, the larger the loan size, the lower the interest rate is.
    • LTV Ratio (Loan to Value Ratio) – In addition, lending organisations charge a higher interest rate with a high LTV ratio on loan against gold. Consequently, the higher the LTV of gold jewellery, the higher the interest rate paid by the borrower.

    Gold Loan Interest Rate of Major Banks


     Interest Rates

    HDFC Bank Gold Loan

    7.11% – 14.50%

    ICICI Gold Loan

    7.11% – 16.10%
    Muthoot Finance Gold Loan

    7.11% – 24.00%

    Axis Bank Gold Loan

    7.11% – 17.11%
    Manappuram Gold Loan

    7.11% – 26.00%

    Yes Bank Gold Loan

    7.11% – 15.99%
    Bank of India Gold Loan

    7.11% – 26.00%

    Federal Bank Gold Loan 

    7.11% – 13.50%
    IIFL Gold Loan

    7.11% – 12.00%

    Central Bank of India Gold Loan

    7.11% – 14.65%

    Canara Bank Gold Loan

    7.11% – 12.65%

    Allahabad Bank Gold Loan

    7.11% – 10.45%

    Induslnd Bank Gold Loan

    7.11% – 15.75%
    PNB Gold Loan

    7.11% – 11.75%

    Bajaj Finance Gold Loan

    7.11% – 26%
    SBI Gold Loan

    7.11% – 15.99%

    Indian Bank Gold Loan

    7.11% – 15.99%
    UCO Bank Gold Loan

    7.11% – 26.00%

    Kotak Mahindra Bank Gold Loan

    7.11% – 13.50%
    Syndicate Bank Gold Loan

    7.11% – 12.00%


    On What Factors does the Gold Loan Amount Depend?

    The amount of credit given is basically based on two factors:

    • The quantity of gold: The weight of gold is one of the key factors that determine the amount of credit paid to the customer, to begin with. After the weight of the stones(if any) in the jewellery is subtracted, the weight is determined. The greater the sum of gold, the greater the quantity that can be offered to the consumer.

    * Note: For loan approval, at least 10 grammes of gold is required.

    • Quality of Gold: The quality of gold is another factor that determines the loan volume. The purity should range from 18 to 22 carats. As a result, the greater the purity of gold, the greater the amount of credit that can be given.

    What are Different Gold Loan Schemes?

    On the basis of the purpose of the use of a loan, banks have various structures. The following are the projects offered by banks to clients willing to take advantage of a Loan Against Gold.

    • Non-Agricultural Gold Loan: To begin with, this scheme qualifies all loan seekers who will not use the amount for agricultural activities. All individuals fall below this category, including salaried, housewives, self-employed, students, women who need a Loan Against Gold to use. Customers are provided with various repayment solutions, such as Term Loan, EMI Service and Overdraft facility.
    • Agricultural Gold Loan: This is a kind of gold loan that is only issued to farmers who choose to use the cash for farming exercises. This service is provided at a reduced rate of interest to farmers.

    Also, the central idea of this system is to provide finance to consumers for managing crop production costs or to invest in allied agricultural projects. To avail an agricultural Gold Loan, one should have proof of farming in the form of proof of agricultural land.

    *Read More: Everything about Agricultural Gold Loan 

    What are the different Gold Loan Repayment Schemes? 

    The loan sum allocated by the bank is repaid in three forms.

    • Bullet Repayment: When it comes to repayment of the loan against gold, most individuals prefer this option. In this form of operation, during the tenure of the loan, the borrower simply has to pay the interest rate. The basic amount, therefore, has to be given at the end of the tenure of the loan. However, clients applying for short-term loans are faced with this option. The interest rate is repaid by EMIs on a monthly basis.
    • Overdraft Facility: Next, this is a form of system recognised by self-employed individuals. As individuals have a company, they have different criteria for capital. Using this service, according to their demands, one can withdraw money. In other terms, the borrower may calculate the percentage of the gross amount spent on the loan on which interest must be paid. The interest is then transferred to the quantity that is withdrawn by the buyer. Finally, the client also has the option of renewing the loan following the completion of the loan tenure.
    • EMI Facility: In addition, there is a separate device that can be chosen by customers to compensate for the gold loan. A fixed amount is determined for this particular option, and the applicant has to pay the monthly amount. This value is a portion of the basic sum and of the interest rate. Among individuals, this system is becoming popular.

    Read more: Know Everything About Gold Loan Repayment

    Gold Loan Per Gram

    When preparing to use the Gold Loan service, the initial thing that comes to an individual’s mind is the amount of loan that is going to be spent on every gramme of gold. Lending organisations typically offer 2450 rupees to 2580 rupees per gramme of gold. Yet, according to the purity of the gold, it shifts again.

    Read More About Gold Loan Per Gram 

    Who All Can Apply for a Gold Loan?

    • The gold must, first and foremost, be in the name of the claimant or one of the members of the family.
    • Second, an Indian citizen should be the applicant.
    • Thirdly, the age should range from 18 years to 70 years (at the time of maturity of the loan).
    • Finally, the bank is not concerned with an applicant’s job status. Therefore, salaried people, self-employed people, housewives, teachers, everyone can apply for a Gold Loan.

    Gold Loan Eligibility Criteria:

    To use a loan against gold, there are certain circumstances that must be met:

    • The applicant must have met the minimum age of 18 years.
    • The person should have gold ornaments or jewellery of their own that can be pledged.
    • The gold to be pledged must be at or above 18 carats.
    • The applicant must have a CIBIL score that is good.


    18-70 years of age



    Employment Status

    Salaried, Self-Employed

    Gold Quality

    Minimum 18 Carats

    What are the Documents Required for Gold Loan?


    2 Passport Size

    Identity Proof

    Aadhar Card, Passport, PAN Card, etc. (Only 1 is required)

    Residence Proof

    Aadhar Card, Driving License, Ration Card, etc. In the case of Rented House then the rent agreement or water/electricity bills for the last three months can be considered. (Only 1 is required)

    Does CIBIL Score Matter in Gold Loan?

    No, banks do not check a person’s CIBIL score to authorise a gold loan. Loan Against Gold is a secured loan programme, so a person’s repayment account does not concern the bank. In the situation that the applicant fails to compensate the loan, the banks will meet the sum of the loan with the gold ornaments in their possession.

    Read More: What is CIBIL Score?

    Why Should One Apply for a Gold Loan?

    • Great Availability: Firstly, Loan against gold is a secured loan provider. Consequently, the processing of this loan is brief because the financial institution is broadly concerned with the quality and weight of the gold.
    • Low Rate of Interest: In evaluation to offerings like personal loans, the Loan Against Gold has the minimum interest rate as banks hold safety in opposition to the loan.
    • Negligible foreclosures prices: Generally, banks do now no longer have any prepayment prices; however, a few banks can rate a penalty of simply 1%.
    • Safety of Ornaments: The jewellery is extra secure with the banks because of the strict safety In the banking establishments that are pretty much less at homes.
    • No qualification of Credit Score: As that is a secured loan, consequently, the applicant does now no longer should fear approximately terrible loan reimbursement history.
    • Income-evidence not required: The revenue of an applicant isn’t always a difficulty for availing a Loan Against Gold because it relies upon majorly at the weight and quality of gold to be had with the applicant.
    • No loan processing prices: Another benefit is that the applicant does now no longer should pay more for this provider because the approval entirely relies upon upon the asset saved as safety.
    • Flexible tenure: In addition to different advantages, the applicant can select the tenure of the loan consistent with their necessities and needs.
    • Only rate of interest: Lastly, the applicant has the choice to pay the primary quantity on the stop of the tenure and simplest the interest each month.

    Gold Loan EMI Calculator:

    It is very important to know the amount that one has to pay each month to the bank. Therefore, you have a choice to determine the EMI before availing a loan. You can do so very quickly and easily. Just click below and get to identify the amount of the EMI you will have to maintain monthly.

    Use the EMI CALCULATOR to calculate your payable EMI Amounts in advance.

    Rate of Interest
    6 months
    1 Yr
    2 Yrs
    3 Yrs
    7.00% 17008 8652 4477 3088
    8.00% 17058 8699 4523 3134
    8.50% 17082 8722 4546 3157
    9.00% 17107 8745 4568 3180
    9.50% 17131 8678 4591 3203
    10.00% 17156 8791 4614 3227
    10.50% 17181 8815 4637 3250
    11.00% 17205 8838 4661 3274
    11.50% 17230 8861 4684 3298
    12.00% 17254 8885 4707 3321
    12.50% 17279 8908 4731 3345
    13.00% 17304 8932 4754 3369
    13.50% 17329 8955 4778 3393
    14.00% 17354 8979 4801 3418
    14.50% 17378 9002 4825 3442
    15.00% 17403 9026 4845 3466


    Why Gold Loan Instead of Personal Loan or Business Loan?

    Now, anyone seeking immediate financing has to worry about why Loan Against Gold over Personal Loan? There are numerous individuals in the country who have a poor credit score or a lower capacity for repayment. A person’s poor repayment ability can apply to the individual’s monthly salary, which may be weak from the bank’s point of view.

    That is, the bank may presume that the person will be unable to pay the loan on time. Lenders usually do not provide Personal Loan or Business Loan in such cases. This is the main reason why Loan Against Gold is the most suitable option for these people. All that the person requires to do is provide simple identity verification and the gold as collateral to the bank. Besides, Gold Loan Interest Rate is considerably less in contrast to other financial services.

    Why Will Banks Provide a Loan To a Person With Poor Credit?

    Banks offer gold loans to people with a history of poor payments. The answer is, in this operation, gold is given to the bank as collateral. Women are related emotionally to gold. It allows the applicant to pay off the loan as soon as possible.

    The bank is guaranteed, therefore, that the loan will be repaid on time. In the event that the customer ever fails to pay for the loan amount, the bank is not at any disadvantage as the banks seize the ornaments to recover the loan amount.

    FAQs for Gold Loan :

    • What is Gold Loan?

    The gold loan, also known as ‘Loan Against Gold’ is a type of secured loan that can be easily used by an individual by keeping their gold ornaments with the bank as collateral protection. A gold loan may be used for any objective, unlike other forms of secured loans, such as car loans or home loans.

    • How does Gold Loan work?

    Loan Against Gold is very easy to understand as well as simple to avail. The Bank presents you with money against your gold Jewelry. The amount depends upon the gold weight.

    • How much Gold Loan can I get per gram?

    Depending on the purity of your Gold, banks allows gold loan between Rs. 1880 to Rs. 2700 on per gram of Gold.

    • How to pay Gold Loan Online?

    You have a choice to pay a gold loan online through online repayment applications.

    Read More: Best Methods of Repaying Gold Loan

    • Gold Loan is secured or not?

    Yes, Loan Against Gold falls under the category of secured loan because the applicant has to place their gold jewellery into the Bank’s locker as security or as collateral.

    • How to calculate the Gold Loan interest rate formula?

    The Gold loan interest rate formula depends on a variety of different factors which are; loan amount, loan tenure, quality of gold, terms with the lending bank, and loan to value ratio. Different types of banks calculate the rate of interest differently.

    • Which bank is best for Gold Loan?

    HDFC Bank is currently offering the best gold loan services in India. Beginning with the low rates of interest, HDFC Bank offers several other conveniences like a personal locker for your gold ornaments, same day disbursement of the loan amount, and the highest LTV ratio to name a few.

    • What happens if Gold Loan is not paid?

    Not paying your gold loan will end in a reduction in your credit score, making it tough to avail a loan in future and will also make you subject to face legal actions by your bank. These legal actions may involve prosecution under the law, extra charges and fines, confiscation and sale of your gold.

    You must always repay the loan on time, and if in case you are unable to do so due to some reason, then you should notify your lender of the same and ask for relief.

    • How to repay the loan against gold?

    In the ways given above, a loan against gold can be easily repaid. Standard EMI options in which both the principal and interest sum are included in the EMIs. In addition, only the interest rate of your loan can be forgiven as an EMI, and then the principal amount can be credited in full at the time of maturity.

    If and when they are willing to, everyone can also make a partial payment of the interest and principal sum. Another option of repayment that banks grant is bullet repayment; at the end of the loan’s term, you must repay the entire amount, including both the principal and the interest.