BankCreds Research · Regulatory impact study
Gold Loan Rates and the Repo Rate: A 16-Lender Research Report
Only 4 of the 16 gold-loan lenders BankCreds Research checked link their rate to the repo rate, 2 use their MCLR, and 6 do not say on their gold-loan pages what the rate is linked to. After RBI raised the repo rate by 25 bps on 7 October 2026, the effect on a short gold loan was small: about ₹139 on ₹1 lakh over 12 months.
- Published
- 9 October 2026
- Last updated
- 25 October 2026
- Data period
- Snapshot of 8 October 2026
- Datasets
- lender sites v1.0 · 16 lenders + RBI v1.0 · 23 changes, 66 decisions
By BankCreds Research & Data Team · Reviewed by BankCreds Financial Experts · Fact-checked by BankCreds Content & SEO Team
Executive summary
When RBI changes the repo rate, home loans linked to it move within days. Gold loans are different. BankCreds Research read the gold-loan and rate pages of 16 lenders on 8 October 2026 and recorded what each says its rate is linked to. Most public sector banks link gold loans to the repo rate; NBFCs and most private banks set their own rates or do not say. Because gold loans are short, a 25 bps change adds little to their cost — but knowing your rate basis tells you whether your rate can change during the loan.
Key findings
Each finding is self-contained and may be quoted with attribution to BankCreds Research. Link a single finding with its anchor (#finding-1, #finding-2 …).
- 1
Only 4 of 16 gold-loan lenders checked by BankCreds Research link their rate to the repo rate: Punjab National Bank, Bank of Baroda, Canara Bank and Union Bank of India.
- 2
State Bank of India and Axis Bank price gold loans off their MCLR, the bank’s own lending benchmark, which also follows RBI but more slowly.
- 3
6 lenders — HDFC Bank, ICICI Bank, Kotak Mahindra Bank, CSB Bank, IIFL Finance and Bajaj Finance — do not say on their gold-loan pages what the rate is linked to.
- 4
3 lenders publish fixed or lender-set rates: Karur Vysya Bank, Muthoot Finance and Manappuram Finance. None of the 4 NBFCs checked links its gold-loan rate to the repo rate or MCLR.
- 5
4 of the 6 public sector banks checked are repo-linked.
- 6
After RBI raised the repo rate by 25 bps on 7 October 2026, Punjab National Bank and Union Bank of India had revised their benchmark by the next day; Bank of Baroda had partly updated its pages; State Bank of India and Canara Bank had not yet revised theirs.
- 7
For 8 lenders the effect could not be judged from their pages, because they name no benchmark or publish a past-quarter range.
- 8
The cost of a 25 bps change is small on a short loan: on ₹1 lakh over 12 months it adds about ₹139 in EMI interest, or ₹250 for a bullet loan.
Key statistics
- Repo-linked gold loans
- 4 of 16
- lenders checked 8 October 2026
- Rate basis not stated
- 6
- lenders
- Repo rate now
- 5.50%
- since 7 October 2026
- Extra interest on ₹1 lakh, 12 months
- ₹139
- for a 25 bps change
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Repo-linked, MCLR-linked or fixed: what it means for you
A repo-linked gold loan is priced as the bank’s repo-based benchmark plus a spread, so the rate can change during the loan when RBI moves. An MCLR-linked loan follows the bank’s own lending benchmark, which also responds to RBI but more slowly. A fixed or lender-set rate stays as agreed for the loan; NBFCs usually price this way, sometimes with a lower effective rate if you pay interest on time. If a lender does not say which applies, ask before you sign.
Why the repo change barely moves a gold loan
Gold loans are short and small compared with home loans. A 25 bps change on ₹1 lakh for a year is worth about ₹139 in EMI interest. On a 20-year home loan the same change adds up over many years. So for most gold-loan borrowers the rate type matters more as a question of certainty — will the rate change during my loan? — than of cost.
Questions to ask your lender
Is my gold-loan rate fixed or linked to a benchmark? If linked, which one, and how often is it reset? Will a change apply to my existing loan or only to new ones? Is the quoted rate an effective rate that depends on paying interest on time? The answers belong in the Key Facts Statement you receive before signing.
Data tables
What each gold loan rate is linked to, and the 7 October 2026 repo rise
| Lender | Type | Published rate | Rate linked to | After the repo rise |
|---|---|---|---|---|
| Bank of Baroda | PSU bank | 9% – 9.25% | Repo-linked | Partly revised |
| Canara Bank | PSU bank | 9.10% | Repo-linked | Not yet revised |
| Punjab National Bank | PSU bank | 9.20% – 9.25% | Repo-linked | Benchmark revised |
| Union Bank of India | PSU bank | 9.55% – 9.90% | Repo-linked | Benchmark revised |
| State Bank of India | PSU bank | 9.15% – 10.10% | MCLR-linked | Not yet revised |
| Axis Bank | Private bank | 9.75% – 17% | MCLR-linked | Cannot tell from the page |
| Muthoot Finance | NBFC | 9.60% – 24% | Fixed / lender-set | Fixed — not affected |
| Manappuram Finance | NBFC | 9.90% – 24% | Fixed / lender-set | Fixed — not affected |
| Karur Vysya Bank | Private bank | 14% | Fixed / lender-set | Fixed — not affected |
| Indian Bank | PSU bank | 8.50% – 9.10% | Floating, benchmark not named | Cannot tell from the page |
| HDFC Bank | Private bank | 9% – 19% | Not stated | Cannot tell from the page |
| ICICI Bank | Private bank | 9% – 16% | Not stated | Cannot tell from the page |
| Kotak Mahindra Bank | Private bank | 9% – 20% | Not stated | Cannot tell from the page |
| Bajaj Finance | NBFC | 9.50% – 24.25% | Not stated | Cannot tell from the page |
| IIFL Finance | NBFC | 9.72% – 27% | Not stated | Cannot tell from the page |
| CSB Bank | Private bank | 9.80% – 12.99% | Not stated | Cannot tell from the page |
As stated on each lender’s own gold-loan and rate pages on the snapshot date. “Cannot tell from the page” = the page names no benchmark or shows a past-quarter range.
Methodology
Data. Each lender’s gold-loan product, interest-rate and benchmark pages, read on 8 October 2026 (dataset version 1.0), and RBI’s repo-rate decisions (dataset version 1.0). Classification. The rate basis is what the lender’s own page states: repo-linked (EBLR, RLLR or BRLLR), MCLR-linked, fixed or lender-set, floating without a named benchmark, or not stated. The status after the repo change is read from the same pages on the day after RBI’s decision. Cost. Extra interest on equal monthly instalments, or simple interest for a bullet loan, at the median lowest published gold-loan rate.
Full standards: BankCreds research methodology.
Data sources
- Lenders’ own websites — gold-loan product, interest-rate and benchmark pages of each lender listed, read on 8 October 2026.
- Reserve Bank of India — Monetary Policy Statements and MPC resolutions.
Limitations
- Pages were read the day after RBI’s decision; lenders that revise later appear as not yet revised.
- A lender that does not state its rate basis may still link its rate to a benchmark internally.
- Agricultural and MSME gold-loan schemes can use a different benchmark from retail gold loans.
Download the report
The full report as a PDF — findings, charts, data tables, methodology and sources — updated 25 October 2026.
Download PDF reportFrequently asked questions
Does the repo rate affect gold loan interest rates?
Will my gold loan EMI go up after a repo rate rise?
Do NBFC gold loan rates change with the repo rate?
Cite this research
You may quote the findings and reuse the charts under CC BY 4.0. Please credit BankCreds Research and link to this page. More options: Use our data.
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Version history. Report v1.0 (2026-10-09): First publication (lender pages read 8 October 2026, the day after the repo change). · lender sites dataset v1.0 (2026-10-08): First release: 17 lenders (16 with rates), as of 2026-10-08. · RBI dataset v1.0 (2026-10-08): First release: 23 events 2016-04-05 → 2026-10-07.
This research describes historical data. It is not investment, borrowing or tax advice, does not forecast prices and does not guarantee any outcome. See our editorial policy, fact-checking policy and corrections policy.