Gold Loan Interest Rates in India: 16-Lender Research Report

Executive summary

BankCreds Research read the gold-loan rate, fee, loan-to-value and tenure pages of 17 lenders on 8 October 2026 — public sector banks, private banks and gold-loan NBFCs — and recorded each figure as published, with its source. Starting rates sat in a narrow band (median 9.35%), but upper limits diverged sharply: public sector banks published tight ranges, while private banks and NBFCs published ceilings of up to 20% and 27%. Several figures need careful reading: 3 lenders publish the range they actually charged in a past quarter rather than a current card rate, the lowest NBFC rates are effective rates after prompt-payment rebates, and 4 public sector banks publish only a benchmark plus a spread. Federal Bank and South Indian Bank could not be read and are not included in the statistics.

Why starting rates look alike but costs don’t

15 of the 16 lenders advertise a starting rate below 10%, from 8.50% upwards. What separates them is how high the range goes and who gets the low end. Public sector banks publish ranges only a fraction of a percentage point wide, so most borrowers pay close to the advertised figure. Private banks and NBFCs publish much wider ranges — up to 20% and 27% — and set the rate by scheme, loan size, loan-to-value and repayment choice. On ₹1,00,000 over a year, the spread between the lowest and highest published rates is worth about ₹10,557 in interest.

Three kinds of rate figure — read the flags

Not every lender publishes the same kind of number, and comparing them blindly misleads. Past-quarter disclosures (HDFC Bank, ICICI Bank and CSB Bank): the range of rates the lender actually charged in a recent quarter, published under RBI’s fair-practices rules — useful evidence, but not today’s offer. Rebate-effective rates (Muthoot Finance and Manappuram Finance): the advertised low end applies only if you pay interest on time; the base rate is higher. Benchmark plus spread (Punjab National Bank, Bank of Baroda, Canara Bank and Union Bank of India): the bank publishes its repo-linked benchmark and a spread, which we added together from the bank’s own figures. The table marks each case.

Loan-to-value: how much your gold can borrow

RBI’s directions limit a consumption gold loan to 85% of the gold’s value up to ₹2.5 lakh in total loans, 80% up to ₹5 lakh and 75% above, and the ratio must hold for the life of the loan. Lenders may lend less than these ceilings, and a fall in the gold price can push a loan over its limit — see our gold price volatility study. The gold loan eligibility calculator estimates the amount for your gold at today’s price.

Rates after the October 2026 repo rate rise

RBI raised the repo rate on 7 October 2026. Gold-loan rates linked to a repo-based benchmark move with it, but on 8 October 2026 some lenders’ pages already showed revised benchmarks while others still showed earlier figures; each figure here is exactly what the lender’s page showed on that date, with the page date in the table. Fixed-rate and MCLR-linked loans do not change automatically with the repo rate. Compare current offers on our gold loan rates page before you borrow.

Methodology

Data. On 8 October 2026 we read each lender’s own gold-loan product, interest-rate and charges pages (dataset version 1.0). Each value is recorded exactly as published with its URL and a short quote; where a lender publishes a benchmark and a spread, we add them using the benchmark shown on the same lender’s site and mark the result. Retail (personal) gold loans only — agricultural and MSME gold schemes are excluded from the ranges.

Statistics. Medians are taken across lenders within each type, using each lender’s lowest and highest published rate. Lenders whose rates could not be read are excluded, not estimated. The cost example is the total interest on a ₹1,00,000 loan repaid in 12 equal monthly instalments at the stated rate; it excludes fees, GST and any rebate conditions.

Full standards: BankCreds research methodology.