5 Best Banks and NBFCs For Gold Loans in India

Best banks for gold loan

A short-term money crisis can be a nightmare, and in such times of emergency, a gold loan acts as a saviour. While loans are difficult to repay, such types of loans provide flexible repayment choices, making them easy to pay back. Also, they are easy to get and ensure instant money disbursement. This makes the gold loan a popular choice among borrowers. 

Since numerous banks and financial organisations like NBFCs have entered the market and started offering gold loans at a competitive interest rate and with an easy application process, it becomes difficult to find the best option.

If you are looking for the best lender in the market to get a loan against your gold, read this article. Here is a list of the best banks and NBFs for gold loans in India. 

What Is a Gold Loan?

Gold Loan, also known as a loan against gold, is a secured loan that is obtained by the borrower by surrendering the gold they are holding. The gold can be in any form like coins, jewellery, or bars and is required to be kept as collateral to a leading bank or financial institution.

In simpler words, it is a type of loan where gold is kept as a mortgage with the lending agency, and a loan is taken against that. 

Factors Affecting the Interest Rate of Gold Loan

There are different factors that are considered by the lender for approving the loan and finding the loan amount you are eligible for. These factors determine the per gram rate of your gold loan. 

  • Loan Amount

The principal loan amount has a major influence on the interest rate and depends on the value of the gold that you are ready to pledge. Some banks or NBFCs provide lesser interest rates on a higher amount, while others provide higher rates on a higher amount. 

  • Credit Score

The credit score or CIBIL score is an important parameter that defines the credit worthiness of an individual. A higher score indicates good repayment history and makes an individual eligible for a loan at a lower interest rate. 

  • Gold Price

The interest rates vary according to the price of the gold in the market. A higher price implies a higher value of the pledged gold which means lower associated risk and lower interest rate. 

List of 5 Best Banks for Gold Loan

Gold Loan ProvidersInterest RateLoan AmountTenureProcessing Fee
HDFC Bank   9.90% onwardsRs 25,000 onwards(Rs 10,000 for rural area)3 months to 24 months1% of disbursal amount
ICICI Bank 10% to 19.8%Rs 50,000 to Rs 10,000,0006 months to 12 months1% of the loan amount
Axis Bank14.5%Rs 25,001 to Rs 25,00,0006 months to 36 months0.50%
Punjab National Bank7.5% to 9.05%Rs 25,000 to Rs 10,00,000Up to 18 months0.75% of the loan amount
State Bank of India7.70%Rs 20,000 to Rs 50 lacsUp to 36 months0.25% of the loan amount

1. HDFC Bank 

HDFC Bank Logo
HDFC Bank 

You can make the most of your idle gold with HDFC bank’s gold loan. It is an attractive solution to meet your imperative financial needs.

You can avail of the loan at any time with flexible tenure and repayment options. It is one of the best banks you can trust for your valuable gold. Looking for the top private banks in india? Here is our ultimate guide for you.


  • Quick disbursement within 45 minutes
  • Transparent process with no hidden charges
  • All Indian residents between 21 and 60 years are eligible
  • Term Loan, OD, and Bullet repayment facility available
  • Collateral is kept secure under a 3-tier sealing system

2. ICICI Bank

ICICI Bank Logo

With minimal documentation, attractive interest rates, and complete security, ICICI bank is a perfect choice for a gold loan.

You can easily get the loan by walking into the nearest branch and submitting the required documents, which takes a few hours to get the amount credited to your account. 


  • Pledged gold is sealed and kept safe in Vault Safe
  • Anyone from 18 to 70 years can avail of a loan
  • Multiple payment options like cash, cheque, DD or through funds transfer
  • The loan can be availed just by submitting your KYC documents
  • There is no stress in paying EMIs; you can pay the entire amount at the end

3. Axis Bank

Axis Bank Logo
Axis Bank

Axis Bank’s gold loan is an outstanding choice for dealing with the urgent need for cash. You can get high-value gold loans instantly by keeping your assets safe with the bank.

As per the requirement and valuation of gold and your repayment capacity, the bank will decide the amount you can get for fulfilling your financial needs. 


  • You can get a loan against gold ornaments as well as gold coins
  • There are no charges on part-prepayment of the loan 
  • The loan gets disbursed on the same day as the approval
  • Earn reward points on loan disbursement or any transaction
  • The collateral is kept in the bank vaults for safety 

4. Punjab National Bank

Punjab National Bank Logo
Punjab National Bank

PNB provides its customers with a loan against gold ornaments, jewellery, and coins. You can get the loan at a lesser interest rate and later can use the amount for any purpose.

Depending on the purpose and the quality of your collateral, the bank decides the amount and helps you in times of crisis. We have also compiled a list of digital banks in india so you can shortlist the ones for you.


  • The gold loan can be taken for both productive or non-productive purposes
  • The loan can be availed by anyone over 18 years of age 
  • Multiple repayment methods like bullet payment, regular EMI, partial payment, etc.
  • 22-carat gold is considered eligible for the loan, and in the case of lesser carats, the value of it is converted into 22 carats for sanction
  • No charges on pre-payment of the gold loan

5. State Bank of India

State Bank of India Logo
State Bank of India

SBI Personal Gold Loan and SBI Realty Gold Loan are the two products that the bank has for its customers.

Both of these loans can be availed by pledging gold ornaments or coins. The process of loan application to approval to disbursal is quite seamless and takes less time to get completed.In case you want to know about best bank for home loan with low interest, we have a curated list for you.


  • Any professional of 18 years or above can avail of a gold loan from SBI
  • A low-interest rate on the gold loan as compared to other banks 
  • There is no processing fee if you apply through YONO
  • The loan is easy to avail with minimum documentation and quick disbursal 
  • Pledged gold is duly verified for quantity and quality and is kept with utmost security with the bank 

List of 5 Best NBFCs for Gold Loan

Gold Loan ProvidersInterest Rate
Loan AmountTenureProcessing Fee
Muthoot Finance   12% onwardsRs 1,500 to No limit7 days to 36 months0.25% to 1% of the loan amount
IIFL Finance9.96% – 27%Rs 3,000 to No limitUp to 24 monthsRs 0 onwards
Manappuram Finance14%Rs 1,000 to Rs 1.5 Crore3 monthsRs 10
Bajaj Finserv10% to 28%Up to Rs 2 Crore12 monthsZero Processing Fee
Shriram City Finance11.5% onwardsRs 10,000 to Rs 20 Lakh12 months to 36 months0.1% onwards

1. Muthoot Finance

Muthoot Finance Logo
Muthoot Finance

In lieu of gold ornaments, you can avail loan from Muthoot Finance. It is one of the largest NBFCs that provides the easiest way of fulfilling all your financial needs.

They have the best gold loan portfolio in the country and ensure complete customer satisfaction. 


  • No requirement for good credit history for availing loan
  • Strong storage rooms with round-the-clock surveillance using CCTV cameras
  • Any Indian citizen of 18 years or above is eligible for a gold loan
  • Free insurance for gold ornaments that are kept as security 
  • Quick and seamless paperwork with an in-house evaluation of gold 

2. IIFL Finance


IIFL is one of the fastest and most affordable gold loan lenders that provides the easiest and quick way of getting the funds.

It is partnered with eJohri, DialaBank, and Fino Payment Bank, which ensures its credibility and makes it the right choice for getting a gold loan. It is also committed to solving all your queries and ensuring complete satisfaction. 


  • 5 minutes approval of the gold loan and distribution in 30 minutes
  • Easy EMI payment and quick track of loans via a mobile application
  • Customised schemes for meeting everyone’s requirements 
  • Minimum documentation for instant approval of the loan 
  • You can win attractive offers or gifts on referring IIFL gold loan

3. Manappuram Finance

Manappuram Finance Logo
Manappuram Finance

An Indian non-banking financial company, Manappuram Finance is the first listed gold loan company that provides the highest-rated loan against gold.

It takes just a few minutes to disburse the loan and ensures you get the right scheme for fulfilling your financial needs. 


  • Any major individual with the gold of carat 18 to 24 can avail loan
  • Gold pledged by customers is stored in safe rooms with strong built and electronic surveillance technology
  • Different loan schemes are available for fulfilling the needs of different individuals
  • The interest of the loan is calculated on the daily product making it easy for partial or pre-payment of the loan
  • A guarantor, introducer, or a bank account is not required availing the loan 

4. Bajaj Finserv

Bajaj Finserv Logo
Bajaj Finserv

Any applicant between 21 to 70 years is eligible for a gold loan at Bajaj Finserv. It is one of the best organisations that offer instant loans by providing a handful of documents.

There are zero end-usage restrictions on using the funds, and they come with flexible repayment tenure and lesser interest rates for an outstanding experience.  


  • Collateral is stored in top-of-the-line vaults in motor-detector rooms 
  • You will get complimentary gold insurance to protect your asset against misplacement or theft
  • Hassle-free application process with minimum documentation that can be done via the website or nearest branch
  • Zero charges on part-prepay or foreclosure of gold loan
  • The gold collateral is evaluated as per the industry-grade carat meter 

5. Shriram City Finance

Shriram City Logo
Shriram City

A loan against gold from Shriram City is an easy option for funding your urgent needs. This NBFC is known for providing a seamless and hassle-free experience with ample benefits. Reaching out to Shriram City for the loan, you don’t need a credit history and can guarantee the complete safety of your mortgage. 


  • The loan can be availed up to 75% of the total gold value available as collateral.
  • Simple documentation and quick processing within a few minutes 
  • The disbursed loan comes with a life insurance cover and gets paid off in case of the applicant’s death 
  • Any individual between the age of 18 to 60 years can apply for a loan
  • No income or credit history proof is required for availing gold loan

Final Word

Gold loans are a great source of support when you are in urgent need of capital. It keeps you away from the botheration of lengthy procedures or paperwork and offers you the capital instantly at a lower interest rate and flexible payment tenure.

SBI and IIFL are our top picks from all the banks and NBFs because of their lower interest rates and quick disbursal. However, you must check all the mentioned lenders on this list and see which one suits you the best. 


Which bank is best for a gold loan in India?

All the above-mentioned banks are the top players in the market for offering the gold loan.

However, the PNB and Axis are known to be the best because of the higher loan amount, flexible repayment tenure, and better offerings. In the case of NBFCs, Bajaj Finserv and IIFL top the list. 

Which bank gives the highest value for the gold loan?

PNB is the bank that offers a maximum LTV (loan-to-value) for gold loans. It accounts for up to 75% of gold’s market value.

Which bank has the lowest interest rate on the gold loan?

PNB (Punjab National Bank) offers the lowest interest rate on the gold loan starting at just 7.70%.

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