10 Best Gold Loan Banks in India (2024)
In 2024, securing a gold loan in India is more accessible than ever, thanks to numerous banks offering competitive rates and flexible terms. Whether you need funds for personal emergencies or business ventures, choosing the right lender is crucial.
This guide presents the 10 best gold loan banks in India, highlighting their interest rates, loan-to-value ratios, and customer service. Discover how these banks can help you leverage your gold assets effectively while ensuring a hassle-free borrowing experience.
10 Best Gold Loan Banks Available In India
- Muthoot Finance
- Manappuram Finance
- Union Gold Loan
- SBI Gold Loan
- Kotak Mahindra Gold Loan
- ICICI Gold Loan
- HDFC Gold Loan
- AXIS Gold Loan
- Central Bank of India Gold Loan
- Federal Bank Gold Loan
10 Best Gold Loan Banks With Their Interest Rates and Tenure Period
Here’s a list of banks along with their interest rates for gold loans and their tenure periods:
| Bank Name | Interest Rate | Loan Amount | Tenure |
|---|---|---|---|
| Muthoot Finance | 11.99% p.a. onwards | Rs. 1,500 to Rs. 1 crore | 7 days to 36 months |
| Manappuram Finance | Up to 29% p.a. | Rs. 1,000 to Rs. 1.5 crore | 3 months to 12 months |
| Union Bank of India (Union Gold) | 7% p.a. onwards | Rs. 3,000 onwards | Up to 12 months |
| SBI (State Bank of India) | 7.50% p.a. onwards | Rs. 20,000 to Rs. 50 lakh | Up to 36 months |
| Kotak Mahindra | 10.50% to 24% p.a. | Rs. 20,000 to Rs. 50 lakh (up to Rs. 25 lakh for new customers) | 12 months to 4 years |
| ICICI Bank | 10% p.a. onwards | Rs. 10,000 to Rs. 1 crore | 3 months to 12 months |
| HDFC Bank | 9.90% onwards | Starting at Rs. 25,000 | 3 months to 24 months |
| Axis Bank | 13% p.a. onwards | Rs. 25,000 to Rs. 25 lakh | 3 months to 3 years |
| Central Bank of India | 9.05% p.a. onwards | Up to 50 grams of gold | Up to 12 months |
| Federal Bank | 8.50% p.a. onwards | Up to Rs. 1.5 crore | Flexible repayment terms |
10 Best Gold Loan Banks in India 2024
1. Muthoot Finance
Muthoot is one of India’s largest gold loan providers, known for its strong reputation in the industry. It boasts an extensive network of 4,265 branches across 21 states and four union territories, making it a trusted name in gold financing.
Customers can receive a loan of up to Rs. 1 crore against their jewelry in just 5 minutes. The loan application process it straightforward and involves minimal paperwork. Interest rates begin at 11.99%, with a maximum repayment period of 36 months, which can be extended with approval.
| Feature | Details |
|---|---|
| Interest Rate | 11.9% p.a. onwards |
| Lowest EMI / Lakh | Rs. 3,321 |
| Loan Amount | Minimum: Rs. 1,500; Maximum: No Limit |
| Loan Tenure | 7 days to 36 months |
| Collateral / Security | Any gold item of up to 50 g with purity of 18K-22K |
| Processing Fee | 0.25% to 1% of the loan amount |
2. Manappuram Finance
Manappuram Gold Loan is a well-known name in the banking sector boasting 3,200 branches across the country. It is recognized for its reliability and swift loan processing, authorizing and disbursing gold loans in just 5 minutes.
The company offers a variety of programs suitable for individuals across all income brackets, with a maximum loan amount of Rs. 1 crore. Although the standard repayment period is 12 months, it can be extended with approval. The interest rate stands at 12%.
| Feature | Details |
|---|---|
| Interest Rate | Up to 29% p.a. |
| Loan Amount | Rs.1,000 to Rs.1.5 crore |
| Tenure | 3 months to 12 months |
| Processing Fee | Rs. 10 at the time of loan settlement Additional Processing Fee on Repledge: 0.07% of New Pledge Value |
| Schemes | ‘High Loan to Value’ and ‘Low-Interest Rate’ |
3. Union Gold Loan
The Union Gold Loan, offered by the Union Bank of India, primarily targets impoverished farmers and individuals requiring urgent funds. Only gold jewellery and gold coins purchased from banks qualify for this loan.
Currently, Union Bank of India is lending 22-carat gold jewellery at a rate of Rs. 1800 per gram. Interest rates are determined by the MCLR, starting at MCLR + 2.65 percent. The maximum loan amount has been capped at Rs.20 lakh.
| Feature | Details |
|---|---|
| Interest Rate | 7% p.a. onwards |
| Loan Amount | Rs.3,000 onwards |
| Tenure | Up to 12 months |
| Loan Disbursal Time | 30 minutes |
| Schemes | Customised schemes to meet your requirements |
| Processing Charges | 1% of the loan amount |
4. SBI Gold Loan
The largest public sector bank, SBI, boasts an extensive branch network. Customers can secure loans from SBI with a repayment period of up to 36 months. Additionally, farmers in rural areas can benefit from SBI’s Golad Loan program.
The procedure for customers opening a new bank account is the same as for those applying for a Gold Loan. The maximum loan amount available through this service is Rs.50 lakh, with interest rates beginning at 7.50%.
| Feature | Details |
|---|---|
| Interest Rate | 7.50% p.a. onwards |
| Loan Amount | Rs. 20,000 to Rs. 50 lakh |
| Tenure | Up to 36 months |
| Eligibility Age | 18 years and above |
| Gold Items Accepted | Gold ornaments verified for quality and quantity |
| Processing Charges | 0.5% of the loan amount |
5. Kotak Mahindra Gold Loan
Kotak Mahindra offers an immediate Gold Loan for urgent financial needs, with an initial term of one year that can be extended based on circumstances. The collateral accepted for Gold Loans includes only wearing gold jewellery with a purity ranging from 18 to 22 Karats and bank-minted coins weighing up to 50 grams per customer.
New customers can obtain a minimum loan of Rs 20,000 and a maximum of Rs. 25 lakh, while existing customers can request loans of up to Rs.50 lakh. The interest rates on Kotak Gold Loan range from 10.50% to 24% per annum.
| Features | Details |
|---|---|
| Interest Rate | 12.5% p.a. onwards |
| Loan Amount | Rs. 20,000 to Rs. 50 Lakh |
| Tenure | 12 months to 4 years |
| Gold Items Accepted | Jewellery and gold coins sold by banks |
| Processing Charges | 2% of the loan amount |
| Eligibility | Savings account with satisfactory dealings or Credit-worthy new customers |
6. ICICI Gold Loan
ICICI Bank recently launched a Gold Loan program featuring attractive interest rates that begin at 10%. They promise a 30-minute approval process. Furthermore, this major financial institution offers Gold Loan up to Rs.15 lakhs, with a repayment period of up to 12 months. The bank also ensures that your gold is stored securely.
| Feature | Details |
|---|---|
| Interest Rate | 10% p.a. onwards |
| Loan Amount | Rs. 10,000 to Rs. 1 crore |
| Tenure | 3 months to 12 months |
| Processing Fee | 1% of the loan amount |
| Documentation Charges | Rs. 199 |
| Disbursal Time | 60 minutes |
7. HDFC Gold Loan
Recently, significant changes have been made to HDFC Bank’s Sampoorna Bharosa Gold Loan program. HDFC Gold Loans are ideal for emergencies as they require minimal paperwork and can be approved within 45 minutes.
The processing fee is 1.50% plus applicable taxes with interest rates starting at 9.90% per annum. The minimum amount for an HDFC Gold Loan is Rs. 50,000.
| Features | Details |
|---|---|
| Interest Rate | 9.90% onwards |
| Loan Tenure | 3 months to 24 months |
| Loan Amount | Starting at Rs.25,000 (Minimum Rs.10,000 in rural markets) |
| Gold Loan Scheme | Term Loan, OD, and Bullet Repayment |
| Processing Fee | 1.5% + GST |
| Custody | Stored under unique triple-layered security |
8. AXIS Gold Loan
Axis Bank is a private sector bank offering attractive and affordable gold loans with interest rates starting at 13% per annum for amounts of up to Rs.25 lakh. Customers can enjoy a repayment period of 36 months.
For specific needs, Axis Bank also provides gold loans with same-day disbursal. The bank ensures a commitment to quality, transparency, and an exceptional customer experience with its Gold Loan offering.
| Parameter | Details |
|---|---|
| Interest Rate | 13% p.a. onwards |
| Loan Amount | Rs. 25,000 to Rs. 25 lakh |
| Tenure | 3 months to 3 years |
| Age | 18 to 75 years |
| Gold Items Accepted | Jewellery and gold coins sold by banks |
| Processing Charges | 1% of the loan amount |
9. Central Bank of India Gold Loan
Customers can obtain a loan of up to 50 grams of gold through the Cent Personal Gold Loan program. The maximum amount for a Gold Loan is either Rs.1,750 per gram or 70% of the market rate for 22-carat gold. The interest rates for Central Bank Gold Loan begin with 9.05% per annum, with a repayment term of up to 12 months.
| Details | Description |
|---|---|
| Interest Rate | 9.05% p.a. onwards |
| Tenure | Up to 12 months |
| Age Eligibility | 18 to 70 years |
| Gold Items Accepted | Ornaments, jewellery & specially minted gold coins (Min. 18K) |
| Processing Charges | 0.5% of the loan amount |
10. Federal Bank Gold Loan
Federal Bank offers a convenient borrowing option with interest rates starting at 8.50%. Customers can secure an instant gold loan with flexible repayment terms and loan amounts up to Rs.1.50 crore. With no hidden charges, low processing fees, and assured affordability, it is a reliable choice for those seeking a Gold Loan.
| Parameter | Details |
|---|---|
| Interest Rate | 8.50% p.a. onwards |
| Loan Amount | Rs. 1,000 to Rs. 1.5 crore |
| Tenure | 6 months to 12 months |
| Repayment Options | Lump Sum, EMI |
| Gold Items Accepted | Gold ornaments verified for quality and quantity (22 karat gold ornaments) |
| Rate per Gram | Maximum amount per gram is up to 85% of the gold price |
Conclusion
Selecting the right bank for a gold loan in India is crucial for maximizing benefits. The top 10 banks of 2024 offer competitive interest rates, flexible repayment options, and excellent customer service. Carefully evaluating each option ensures borrowers make informed decisions for their financial needs.