is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Learn more.

Best Gold Loan Companies In India

July 28, 2022

Looking for a Best Gold Loan Companies In India?

Great! You have reached the right place; we are here to help you, make sure to read the article carefully to know the best gold loan bank.

Often, we find ourselves in situations where we need a large amount of money. Whether it is to start a new venture, a wedding, or a medical emergency,

It may not be ideal to spend all the money you have in the bank during these tough times. In these circumstances, a bank loan is the most widespread way of raising funds for these emergencies.

But the processing time and interest rates for these loans, especially unsecured loans may take a lot of time.

The best way to raise quick funds with less paperwork and low-interest rates is through gold loans.

Gold loans are loans received by pledging gold. These loans are slowly dominating the lending sector. People are increasingly realizing the potential to pledge their family heirlooms to fulfill their financial requirements.

This is due to many reasons. With gold rates skyrocketing, people can get maximum value for their pledged gold. Also, low-interest rates, quicker processing, and less paperwork have increased the market for gold loans, especially for short-term borrowing.

If you are looking for a short-term loan with a low-interest rate, you may want to consider getting a gold loan from a reputed financial institution.

Here are a few reasons why a gold loan may be the right choice for you.

Salient features of a gold loan

1. Low-interest rates

For anyone going through a financial crunch, paying huge interest may just be an added burden. To avoid this, You can opt for gold loans as they come with the lowest interest rates as compared to other unsecured loans such as personal loans. 

2. Minimum processing fee

Many financial institutions charge a high processing fee for secured and unsecured loans. But because gold loans come with secured collateral, these institutions charge very less processing fees.

Some banks do not charge processing fees for gold loans at all, reducing the burden on the borrower.

3. Faster processing

This can be a boon for anyone who is looking for a quick loan. Unlike other loans, financial institutions take less time processing a gold loan as it is completely secured.

In fact, when you are opting for a gold loan, the loan amount will be disbursed to you within hours, that too, with minimum documentation.

4. No credit history required

Since gold loans are secured loans, financial institutions do not delve into the credit history of the borrower before processing the loan application.

Therefore people who have a poor CIBIL score or credit history can still opt for a gold loan to avoid high-interest rates.

5. The unique option of paying only interest

Many financial institutions provide the borrower with the option of paying only interest on their gold loan. They have the flexibility of paying the principal amount anytime before or at the end of the tenure to release their pledged gold.

This feature can come in handy for people who cannot pay the loan amount immediately after receiving the loan. If these features seem attractive to you, you can opt for a gold loan to fulfill your short-term financial requirements

If so, you may find that many banks and NBFCs are offering gold loans at attractive interest rates. Choosing the right one is very important for you as you will be trusting them with your valuable ornaments.

Also, many financial institutions cheat people by levying hidden charges or increasing interest rates without informing them. To avoid this, you must opt for a reliable financial institution with a good history and customer feedback.

Top 10 Best Gold Loan Companies In India: Buying Guide (Updated 2022)

1. Manapurram Finance

Manapurram Finance

One of the gold finance company, Manapurram is a Kerala-based Non-Banking Financial Institution (NBFC) and a trusted name when it comes to gold loans.

They provide disbursement of the loan amount within minutes. They also provide flexible schemes for different income groups.

You can choose the one that suits your needs. The company also provides the option for an online gold loan, Where you secure your gold in any of their nearest branches.

You just have to register for the gold loan online through their application or  website and link your bank account. The amount will be credited to you within minutes.

  • Interest rates: start from 12% p.a.
  • Loan amount range: Rs 1,000 to 1 crore
  • Processing fee: Rs 10 to be paid at the time of settlement

2. PNB Gold Loan

PNB Gold Loan

Punjab national bank provides gold loans at attractive interest rates.

If you are applying for a loan for productive purposes like-Agriculture and related activities or non-productive purposes like education or medical emergencies, the chances of the bank approving your loan application will be high.

The bank also provides a gold loan against sovereign gold bonds and gold that is less than 22-carat purity.

Interest can be paid yearly or half-yearly based on the purpose of the loan. However, the bank caps the minimum loan amount at Rs 25,000 and the maximum amount at Rs 10 lakhs.

  • Interest rates: 7.25% to 7.5% p.a. on gold ornaments and 7.15% to 7.35% p.a on sovereign gold bonds.
  • Loan amount range: Rs 1000 to 1 crore

3. SBI

State Bank of India is another reliable bank for gold loans with one of the lowest interest rates.

The largest public sector bank offers gold loans with a tenure of 36 months.

With a widespread reach and branches in rural areas, it is the most preferred bank for farmers.

The bank provides cash approvals and no charges on pre-payment of the loan. You can also apply for a gold loan on an individual or joint basis with another person.

The bank also provides two types of gold loans: normal gold loans and realty gold loans for members who have a housing loan with the bank.

Flexible payment options such as monthly EMI-based or a liquid loan with overdraft facility make it easier for repayment.

  • Interest rates: 7% to 7.3% pa
  • Loan amount range: Rs 20,000 to 50 lakh
  • Processing fee: 0.2% of the loan amount + GST
  • Other charges/penalties: Gold appraisal charges, as applicable, to be borne by the borrower.

4. Kotak Mahindra Bank

Kotak Mahindra Bank

Kotak Mahindra Bank offers instant approvals on gold loans. The bank is known for its amazing customer service.

Various repayment options and flexible tenure makes it easier for loan repayment.

However, the bank only accepts 18 and 22-carat gold wearable ornaments and gold coins that weigh a maximum of 50 grams per person.

The tenure of the gold loan can range from 12 months to 24 months on further request.

 Interest can be paid quarterly, half-yearly, or yearly based, on the flexibility of the borrower.

  • Interest rates: 8% to 17% p.a.
  • Loan amount range: Rs 20,000 to 25 lakh for new customers and 50 lakh for existing customers.
  • Processing fee: 2% of the loan amount + GST
  • Other charges/penalties: Stamping charges will be paid by the applicant. Also, a 3% interest is charged on the overdue loan amount.

5. ICICI Bank


ICICI bank offers gold loans with instant approval and less documentation. It also offers gold loans to farmers with a lesser interest rate.

The bank does not charge for foreclosing the loan. It also gives you the option of part payment and an extended loan tenure for easy repayment.

Combined with a low-interest rate and longest tenure, ICICI Bank offers the lowest EMI per lakh on gold loans.

You can also apply for a gold loan via their website MyLoanCare. Checking the status of your application is also quite easy on the website. Once approved, the loan amount will be disbursed within 24 hours.

  • Interest rates: 10% to 19.76% p.a.
  • Loan amount range: Rs 10,000 to 10 lakh.
  • Processing fee: 1% of the loan amount + GST

6. HDFC Bank


HDFC Bank offers gold loans instantly for all your urgent requirements. With different gold loan options, such as overdraft, term loan, or bullet repayment,

You can choose the one that suits your requirements. The bank provides instant approval and disbursal with minimal processing and documentation.

No hidden charges are levied by the bank, this is why it is considered as the best gold loan in India

You also have the option to pay only interest every month and interest + principal after 1 year-

If you have opted for the bullet payment option.

  • Interest rates: start from 9.90% p.a.
  • Loan amount range: Rs 25,000 to 1 crore.
  • Processing fee: 1% of the loan amount + GST
  • Other charges/penalties: 1% foreclosure charges are to be paid by the borrower

7. Axis Bank

Axis Bank

Axis Bank is a private sector bank known for its customer-friendly approach. Its gold loans are also extremely customer-friendly.

They provide gold loans with low-interest rates and easy repayment options.

With same-day disbursal, their entire process is completely transparent. They also have separate interest rates for agricultural purposes.

Gold jewelry of 22 carats and gold coins issued by other banks is accepted as collateral.

The maximum repayment tenure is 36 months with options of monthly EMI or part payment on a half-yearly or yearly basis.

  • Interest rates start from 13% p.a.
  • Loan amount range: Rs 25,000 to 25 lakh
  • Processing fee: 0.5% of the loan amount + GST
  • Other charges/penalties: A 2% interest will be charged per month on the overdue amount.

8. Central Bank of India

Central Bank of India

Central Bank of India provides gold loans for different purposes, such as business gold loans, Personal gold loans, or agri gold loans for agriculture purposes.

Only gold coins minted by other banks and 22 or 24 carats of-Hallmarked gold jewelry are accepted as collateral.

The value of the gold loan provided is 70% of the gold's market value.

Also, the maximum loan tenure is capped at 12 months.

  • Interest rates: start from 9.05% p.a.
  • Loan amount range: Rs 10,000 to 40 lakh
  • Processing fee: 0.75% of the loan amount + GST

9. Federal Bank

Federal Bank

Federal Bank is another trusted institution for gold loans. They provide hassle-free processing and quick disbursal.

Low-interest rates and multiple repayment options give you the flexibility to pay the loan at your convenience.

Gold ornaments with 22-carat purity will be accepted as collateral. They also provide the maximum amount of loan per gram,

Which is 85% of the market price. The loan tenure starts from 6 months. The bank gives you an option of overdraft facility against your gold. You can withdraw up to 72% of the gold value under this scheme.

  • Interest rates start from 8.50% p.a.
  • Loan amount range: Rs 10,000 to 1.5 crore
  • Processing fee: 1% of the loan amount + GST

10. Canara Bank Gold Loan

Canara Bank Gold Loan

One of the biggest gold loan finance company, Canara Bank markets its gold loan as 'Swarna Loan'. It also provides gold loans under the 'Swarna Express Scheme'.

The Swarna overdraft facility is for a period of two years and gives you the freedom to withdraw funds at your convenience.

The maximum period for gold loans is capped at 12 months.

The bank also provides you with the option of paying only interest every month and the principal amount can be paid during the settlement.

  • Interest rates start from 7.65% p.a.
  • Loan amount range: Rs 5,000 to 35 lakh
  • Processing fee: 0.5 % of the loan amount + GST
  • Other charges/penalties: Jewellery appraising charges to be paid by the borrower as applicable

If you are facing any kind of a cash crunch, a gold loan is perfect for receiving funds for the short term at low-interest rates. You can choose from any of the above reputed financial institutions to pledge your gold.

Once you decide on this, you can follow the below steps to apply for a gold loan:

How to apply for a gold loan?

Step 1- Apply online or offline-

  • The first step will be to visit the selected lender's website and select the 'Apply now' option under gold loans.

  • The application form will prompt you to enter your details such as name, date of birth, address, age, PAN details, etc.

  • You can also check for other details such as the application process, documents required, eligibility, interest rates, tenure, other charges, etc.

  • After filling out the form, you will receive a call from the institution regarding your application status and the next step.

  • If you do not want to apply online, you can visit their nearest branch and enquire about applying for a gold loan. 

Step 2- Verification process.

  • Whether you have applied online or offline, the vendor will check your application and request you to visit the branch with the gold you want to pledge and the documents required to process the loan. 

Step 3- Testing the gold 

  • Once you visit their branch with all the documents and the gold, a check will be conducted on the ornaments to authenticate their purity.

  • Details of all the ornaments or coins you submit will be written in the form.

  • After all the documents are signed and submitted, you will be asked to wait a minimum of 24 hours to receive the loan amount.

  • Some lenders also provide instant disbursal at this stage as well.

Step 4- Loan amount disbursal

  • Depending on the lender you choose, your loan amount will be credited to your bank account within the agreed time frame. 

This is a standard procedure to apply for a gold loan. The process or steps may vary depending on the lender you choose.

Gold Loan Eligibility Requirements

All financial institutions have certain eligibility criteria that need to be fulfilled if you want to apply for a gold loan. You can check the lender's eligibility criteria beforehand on their website or enquire at their nearest branch for the same.

Here are a few standard criteria set by lenders to avail the gold loan:

  • The applicant has to be above 21 years of age to apply for a gold loan.

  • The applicant must have proof of ownership of the gold ornaments submitted as collateral in the form of an original receipt of the purchase.

  • The purity of the gold should be 18 carats and above. Some lenders accept a purity of 22 carats and above only.

  • The applicant should be an Indian national.

  • Some lenders may ask for an income certificate or the nature of employment to process the application.

Factors affecting gold loan interest rates

While you are researching different financial institutions to apply for a gold loan, you will find that they do not offer a fixed interest rate. The interest rate on the gold loan varies depending on several conditions.

Here are a few factors that will ultimately affect the interest rate offered to you by the vendor-

1. Loan amount

This is the foremost factor that affects your gold loan interest. Depending on the loan amount, your lender will charge you interest. Typically, if the loan amount is higher, the interest charged will be lower, as you will be pledging more gold.

Interest charges are high for less loan amount.

2. Loan tenure

Another important factor that will affect your gold loan's interest rate is your loan tenure. Lenders usually charge a high-interest rate for a short loan tenure and a lower interest rate for a longer tenure.

3. LTV ( Loan to value ratio)

Many lenders have a cap on the amount of loan issued per gram of gold, which is anywhere between 60-80% of the current market value of gold per gram.

A loan with a higher LTV will result in a higher interest rate due to the higher valuation of gold per gram. It increases the risk of loss to the lender. In the same way, low LTV will give you a lower interest rate.

4. Factors such as your CIBIL score and monthly income

Though it is not a prerequisite for a gold loan, there are higher chances of vendors providing you with a low-interest rate on your gold loan if you can prove your creditworthiness.

An income certificate or a good CIBIL score is a good way to reduce the interest charges on your gold loan. Also, some banks charge less interest to their existing customers, so you can use that to your advantage.

Documents required for gold loan

Though the documentation list and process vary across lenders, here is a standard list of documents that you may need to submit along with your gold loan application-

1. Your ID proof

  • This may include any 1 of the following documents:
  • PAN card
  • Aadhaar card
  • Voter's ID
  • Ration card
  • Driving license
  • Passport

2. Your proof of address

This may include any 1 of the following documents:

  • Aadhaar card
  • Ration card
  • Passport
  • Voter's ID
  • Electricity bill, water bill, or telephone bill ( not older than 3 months)

3.Proof of income or bank statement

4. Proof of the ownership of the gold to be pledged

Things to consider while taking a gold loan

Gold loans are the easiest way to raise funds during a financial crunch as they are easy to acquire with less documentation and instant disbursal.

However, you must look into the fine print before you sign the documents as negligence in such cases may cost you your precious gold. Here are a few things you need to keep in mind before finalizing a lender for your gold loan.

1. The lender's reputation

There are many lenders out there that provide gold loans with lower interest rates. However, you will be trusting them with your precious jewelry or heirloom.

So make sure to check their credibility before approaching them, especially if you have opted for a non-banking financial institution. You can look for government certifications or even feedback from people who have previously associated with them.

The application process should be completely transparent, and everything should be properly documented, especially your gold.

2. The LTV ratio

This is something that most of us miss out on while applying for a gold loan. The LTV is your Loan to Value ratio. In simple words, it is the amount of loan the lender is providing against per gram of your gold.

Usually, your loan amount should be anywhere between 70-80% of your gold value. Many lenders skimp on this for their vested interest. If your lender is providing you with anything less than that, look for other options.

3. Interest rates and other charges

Lenders typically do not have a fixed interest rate when it comes to gold loans so make sure to negotiate the best interest rate for yourself. This will also decide your repayment structure.

Communicating about these things beforehand will help you plan your finances in a better way and close the loan as soon as possible. Also, be sure to ask your lender about other hidden charges, such as foreclosure charges.

High foreclosure charges are levied to discourage the borrowers from closing the gold loan before the term as it results in a loss for the lender. If it is high, you can either negotiate or look for other options.

While opting for a financial institution for a gold loan, do look out for these red flags. It is important to read and understand all the terms and conditions beforehand to avoid any unpleasant experiences.

Frequently Asked Question

Q1. What is a gold loan?

A gold loan is a loan taken by providing gold ornaments or coins in the form of collateral to the vendor. You can pledge your gold ornaments such as necklaces, earrings, bangles, bracelets, pendants, or watches to acquire funds in case of a financial crisis.

You will get back the possession of all your pledged gold articles once you close the loan.

Q2. Who can avail of a gold loan?

Anyone who is 21 years of age and above can avail of a gold loan from any financial institution. However, proof of ownership of the gold ornaments in the form of an original buying receipt is required to pledge them.

Q3. Which is the best mobile trading app for commodity trading?

The loan amount that you receive will be based on the amount of gold you are willing to pledge and also the purity of your tournaments.

Also, the lender's LTV (loan to value) ratio will be the deciding factor that will ultimately affect the loan amount you receive against your ornaments.

Q4. How long will it take for me to receive the loan amount?

This depends on your lender. Typically, the disbursal time for gold loans is less compared to other loans. So you can expect your loan amount to be disbursed anytime between a few hours to even a day.

Q5. Can I prepay the loan amount?

Yes, absolutely. However, many lenders will charge you a fee if you repay your loan before the loan period. These are called foreclosure charges. You may check with your bank or lender for the same.

I hope you liked our article on Best Gold Loan Companies In India, and it must have solved your queries such as which bank is best for gold loan, gold finance companies in India, or best bank for gold loan in India

if you have any comments or suggestions do share them in the comments below.


Follow me here

About the Author

Currently working as an Editor in Chief with, he is managing all the ins and outs of the content management process and editorial operations. Having an experience of 8 years in the publishing/ e-solution industry, he manages a small freelancing team of fellow editors and has worked with several domains including academics, healthcare, lifestyle and technical writings. He is a stickler for accuracy and loves to read noir-fiction and binge-watch anthologies.

You may also like

Lakshmi Ji Ki Aarti

Lakshmi Ji Ki Aarti

Hdfc Refer and Earn

Hdfc Refer and Earn

Best Forex Cards

Best Forex Cards

Business Ideas In Hyderabad

Business Ideas In Hyderabad

Attitude Status In English

Attitude Status In English

Love Quotes

Love Quotes
{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
Success message!
Warning message!
Error message!