Gold Loans have become one of the most popular ways to arrange quick funds in India. Whether it’s for education, business, medical emergencies, or weddings, pledging gold jewelry is a simple and reliable way to get cash instantly. In 2025, most banks and NBFCs are offering attractive Gold Loan interest rates along with flexible repayment options.
This article will help you compare the latest Gold Loan interest rates across top Indian banks and NBFCs, so you can choose the best option for your financial needs.
Current Gold Loan Interest Rates in 2025
Interest rates on Gold Loans vary depending on the lender, customer profile, and repayment type. On average, banks and NBFCs are offering Gold Loans between 7% and 18% per annum in 2025.
Bank-wise Gold Loan Interest Rates 2025
| Bank/NBFC | Interest Rate (p.a.) | Loan Tenure | Processing Fee |
|---|---|---|---|
| HDFC Bank | 8.50% – 17.55% | Up to 36 months | 1% of loan amount |
| SBI (State Bank of India) | 8.75% – 17.00% | Up to 36 months | 0.50% – 1% |
| ICICI Bank | 9.00% – 17.20% | Up to 24 months | 1% of loan amount |
| Axis Bank | 8.75% – 17.00% | Up to 36 months | 1% of loan amount |
| Kotak Mahindra Bank | 9.00% – 17.50% | Up to 36 months | 1% of loan amount |
| Punjab National Bank (PNB) | 8.80% – 15.00% | Up to 24 months | 0.75% |
| Bank of Baroda | 9.00% – 15.50% | Up to 24 months | 1% of loan amount |
| Muthoot Finance | 7.99% – 18.00% | Up to 36 months | 1% – 2% |
| Manappuram Finance | 8.00% – 18.00% | Up to 36 months | 1% – 2% |
| Federal Bank | 9.00% – 16.50% | Up to 24 months | 1% of loan amount |
Note: The above interest rates are subject to change as per RBI guidelines and lender policies in 2025.
Factors Affecting Gold Loan Interest Rates
- Loan-to-Value (LTV) Ratio – RBI allows up to 75% of the gold value as loan.
- Loan Amount – Higher loan amounts may attract lower interest in some banks.
- Customer Profile – Existing customers with good repayment history often get lower rates.
- Repayment Option – Choosing bullet repayment or overdraft facility may change the rate.
- Bank vs NBFC – Banks generally offer slightly lower rates, while NBFCs offer faster disbursement.
How to Get the Lowest Gold Loan Interest Rate in 2025
- Compare offers from multiple banks and NBFCs before applying
- Check for festive offers and special schemes (common during Diwali, Akshaya Tritiya, etc.)
- Maintain a strong relationship with your bank for better terms
- Negotiate processing fees and hidden charges
- Choose shorter tenure loans if possible, as they attract lower interest
Why Gold Loan is Popular in 2025
- Instant disbursement within hours
- Lower interest compared to personal loans and credit cards
- Flexible repayment methods (EMI, bullet, overdraft)
- No need for income proof or credit score check
- Safety of pledged gold ensured by banks/NBFCs
Best Bank for Gold Loan in 2025
- For lowest interest rates: SBI, PNB, Bank of Baroda
- For fastest disbursement: Muthoot Finance, Manappuram Finance
- For digital gold loan services: HDFC Bank, ICICI Bank, Axis Bank
Conclusion
In 2025, Gold Loan continues to be one of the most affordable and convenient borrowing options in India. While NBFCs provide instant disbursement, banks usually offer lower interest rates. Before applying, compare interest rates, processing fees, and repayment options across lenders.
If you want a quick, low-interest loan without affecting your credit score, Gold Loan is one of the best choices available today.