Gold Loan Interest Rate 2025
A gold mortgage is a secured mortgage wherein people pledge their gold ornaments or cash as collateral to attain cash right away. Banks and NBFCs (Non-Banking Financial Companies) provide these loans for short-term or emergency economic necessities. The Gold Loan Interest Rate determines the overall reimbursement cost.
Below is the updated desk of Gold Loan Interest Rate for predominant banks and NBFCs in India (2025).
| Bank/NBFC | Interest Rate (Per Annum) | Loan Tenure | Processing Fee | Maximum Loan Amount |
|---|---|---|---|---|
| HDFC Bank | 7.50% – 16.00% | 3 months – 24 months | 1% of loan amount | Up to ₹25 lakh |
| State Bank of India (SBI) | 7.00% – 15.00% | 3 months – 36 months | 0.50% or ₹500 (whichever higher) | Up to ₹50 lakh |
| Axis Bank | 8.25% – 17.50% | 6 months – 36 months | 1% of loan amount | Up to ₹20 lakh |
| ICICI Bank | 8.00% – 16.50% | 3 months – 24 months | 1% of loan amount | Up to ₹15 lakh |
| Manappuram Finance | 6.90% – 24.00% | Up to 12 months | ₹10 to ₹500 | Based on gold value |
| Muthoot Finance | 7.00% – 24.00% | Up to 12 months | ₹10 to ₹500 | Based on gold purity |
| Federal Bank | 8.00% – 14.50% | Up to 12 months | 0.25% | ₹1,500 to ₹1 crore |
| Punjab National Bank (PNB) | 7.25% – 12.50% | Up to 24 months | 0.75% | Up to ₹25 lakh |
Note: Rates are difficult to change relying on loan amount, tenure, LTV ratio, and borrower’s profile.
The better the purity (22K or 24K), the higher the loan to price ratio (LTV), leading to a potentially lower interest charge.
As per RBI policies, the most LTV ratio is 75%, meaning creditors can provide a loan of up to 75% of your gold’s present day marketplace value. A decreased LTV ratio regularly results in a reduced gold mortgage hobby price.
Shorter tenures typically attract decreased interest quotes, at the same time as longer intervals include barely higher charges due to expanded risk.
When gold prices upward push, creditors can provide barely higher gold mortgage interest fees because the collateral value increases.
| Type | Description | Who Should Choose |
|---|---|---|
| Fixed Interest Rate | The rate remains constant throughout the loan tenure. | Borrowers who prefer predictable EMIs. |
| Floating Interest Rate | The rate changes with market conditions or RBI repo rate. | Borrowers expecting rates to fall in future. |
Tip: Choose a fixed price for short-time period wishes and floating price for long-time period flexibility.
To calculate the total hobby payable, use this easy method:
Interest = (Principal × Rate × Tenure) ÷ 100
Example:
If you borrow ₹1,00,000 at an interest rate of 8% for 365 days,
Interest = (1,00,000 × 8 × 1) ÷ 100 = ₹8,000
Total Repayment = ₹1,00,000 + ₹8,000 = ₹1,08,000
| Feature | Banks | NBFCs |
|---|---|---|
| Interest Rate | 7% – 14% | 12% – 24% |
| Loan Amount | Based on income and gold value | Based primarily on gold value |
| Processing Time | 1–2 days | Within hours |
| Documentation | More strict (KYC + income proof) | Minimal |
| Customer Segment | Salaried, business owners | Anyone with gold |
| Prepayment Charges | 0% – 2% | 0% – 5% |
Banks are best for low-interest, secured loans, while NBFCs are pleasant for urgent, small-price tag loans.
Use contrast structures or go to financial institution web sites to check actual-time gold mortgage hobby charges.
A CIBIL rating above seven-hundred can help negotiate decrease prices with banks.
Shorter loans (3–6 months) generally have decreased interest fees.
Banks frequently offer 0.25% to 0.50% lower costs for online gold mortgage programs.
If you have got present debts or profits debts with a bank, request preferential gold mortgage interest charges.
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Interest Rate | 7% – 24% | 10% – 25% |
| Collateral | Required (Gold) | Unsecured |
| Approval Time | Instant (within hours) | 1–3 days |
| Tenure | Up to 3 years | Up to 5 years |
| Processing Fee | 0.25% – 1% | 1% – 3% |
| Eligibility | Based on gold purity | Based on income/credit score |
Gold loans are cheaper and faster compared to personal loans, making them ideal for pressing needs.
When reviewing the gold loan hobby charge, usually take a look at for these hidden expenses:
| Charge Type | Description |
|---|---|
| Processing Fee | 0.25% – 2% of the loan amount |
| Prepayment Penalty | 0% – 5% (if paid early) |
| Late Payment Charges | 2% per month (on overdue EMI) |
| Valuation Fee | Charged by NBFCs for gold appraisal |
| Auction Fee | Applicable if the borrower defaults |
The gold loan interest price in 2025 varies extensively between 7% and 24%, relying on the lender, tenure, and purity of gold. By comparing distinct banks and NBFCs, retaining suitable credit, and choosing shorter phrases, borrowers can stabilize the lowest gold mortgage hobby price and maximize their savings.
The Gold Loan Interest Rate 2025 plays a critical function for borrowers trying to leverage their gold belongings for short financial needs. This manual covers up to date interest fees, evaluation among banks and NBFCs, EMI calculators, influencing factors, and approaches to get the bottom rates successfully.
Yes, due to the fact gold loan interest fees are usually lower, approval is quicker, and no earnings evidence is needed as compared to personal loans.
Yes, most lenders permit pre-closure anytime, however a small prepayment charge (0%–2%) can also apply relying on the lender.
Interest is calculated based on important quantity, hobby fee, and tenure, frequently using simple interest formulas.
While gold loans are secured, a desirable credit rating (above 700) can help negotiate decrease gold loan hobby charges with banks.
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