Short answer: Published gold loan rates start at about 8.5% to 9% a year at banks (Federal Bank, HDFC Bank, ICICI Bank, SBI) and NBFCs (Muthoot Finance, Manappuram). NBFC rates rise if you pay interest less often. Banks usually charge early-closure fees in the first months and may lend less per gram; NBFCs often have no foreclosure fee and lend from ₹1,500.
Last verified: 12 October 2026 from each lender’s official website and, where marked, its Google Play listing. FundsTiger does not rank lenders; tables are sorted by the figure in question, and the right choice is the one with the lowest APR you are actually offered.
Rates and charges at a glance
| Lender | Type | Interest rate | Fees | Loan amount | Closing early |
|---|---|---|---|---|---|
| Muthoot Finance | RBI-registered NBFC | From 9% a year if interest is paid monthly; compounded monthly; scheme rates not published | No processing fee listed; 1% service charge on some 12-month loans (South), 0.15% security charge elsewhere (₹100 to ₹1,000) | From ₹1,500; no fixed maximum (some schemes up to ₹5 crore) | No foreclosure charge; pay interest to date |
| Manappuram Finance | RBI-registered NBFC | 9.90% to 24% a year by scheme and how often you pay interest; annualised 26.82% | ₹30 including tax, one-time at settlement | From ₹10,000 to ₹5 crore | No foreclosure fee |
| IIFL Gold Loan | RBI-registered NBFC | From 9.72% a year (fee table: 11.88% to 27%) | From ₹0, varies by scheme | From ₹3,000; no fixed maximum | Allowed any time; no foreclosure fee stated |
| SBI Gold Loan | Public sector bank | 9.15% (12-month bullet) to 10.10% (EMI and overdraft), as on 16 June 2026 | 0.25% to 0.50% (pages differ); 0.25% for ₹50,000 to ₹2 lakh, minimum ₹250 + GST | ₹20,000 to ₹50 lakh (one FAQ says up to ₹1 crore) | No prepayment or foreclosure charge |
| Rupeek | Gold loan platform | Set by the partner lender; no rate table published (site mentions rates “as low as 0.89%”, period not stated) | Site says zero processing fee in places and “among the lowest” in others; no figure published | ₹30,000 to ₹1.5 crore | No lock-in; close any time |
| Muthoot FinCorp | RBI-registered NBFC | From 11.99% to 12% a year (pages differ); scheme rates not published | From ₹20, depending on scheme | From ₹1,000; no fixed maximum | Not published |
| HDFC Bank Gold Loan | Private sector bank | 9% to 19% a year actually charged in Jan to Mar 2026 (average 10.86%); APR 9.01% to 19.08% | Up to 1% + tax; valuation ₹350 + tax up to ₹2 lakh | ₹25,000 to ₹3.5 crore (older product page) | 2% within 30 days, 1% from 31 to 180 days, nil after 180 days |
| ICICI Bank Gold Loan | Private sector bank | 9% to 16% a year charged in Apr to Jun 2026 (average 10.96%) | Up to 2% + taxes; valuation ₹500 up to ₹3 lakh | From ₹2 lakh (₹3 lakh for new customers in metros) to ₹2 to ₹3 crore (pages differ) | 2% within 30 days, 1% within 90, 0.5% within 180, nil after 180 days |
| Federal Bank Gold Loan | Private sector bank | 8.50% to 22.90% a year (Q1 2026-27 credit pricing; average 10.87%); APR 9.68% to 26.03% | 0.39% (minimum ₹500) + GST on general gold loans; ₹750 on EMI gold loans | ₹3,000 to ₹1.5 crore | Allowed; no charge published |
| Kotak Gold Loan | Private sector bank | 9% to 20% a year by loan type, amount and tenure; 0.88% a month above ₹8 lakh for over 12 months | 2% + GST in the charges table (the FAQ on the same page says no processing fee); valuation ₹350 to ₹1,000 | Not published | Lock-in of 5 to 12 months by product, then 2% + taxes on the amount prepaid |
Interest on ₹1 lakh for 12 months at each lowest published rate
| Lender | Rate | Interest | Fees | Total |
|---|---|---|---|---|
| Muthoot Finance | 9% | ₹9,000 | See charges | ₹9,000 + charges |
| Federal Bank Gold Loan | 8.5% | ₹8,500 | ₹590 | ₹9,090 |
| SBI Gold Loan | 9.15% | ₹9,150 | ₹295 | ₹9,445 |
| IIFL Gold Loan | 9.72% | ₹9,720 | See charges | ₹9,720 + charges |
| Manappuram Finance | 9.9% | ₹9,900 | ₹30 | ₹9,930 |
| HDFC Bank Gold Loan | 9% | ₹9,000 | ₹1,593 | ₹10,593 |
| Kotak Gold Loan | 9% | ₹9,000 | ₹2,773 | ₹11,773 |
| Muthoot FinCorp | 11.99% | ₹11,990 | See charges | ₹11,990 + charges |
| ICICI Bank Gold Loan | 9% | ₹9,000 | ₹7,670 | ₹16,670 |
Assumes interest paid monthly and principal at the end. Rupeek publishes no rate.
How gold loan pricing works
- Payment frequency: at Manappuram the same scheme costs 9.90% if you pay interest monthly and 22% if you pay quarterly.
- LTV: RBI caps personal-use gold loans at 85% of value up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above. Banks such as SBI keep bigger margins.
- Bank vs NBFC vs platform: banks often have the lowest card rates; NBFCs are faster and lend small amounts; platforms such as Rupeek arrange bank loans at your doorstep.
- Valuation: lenders value gold at the lower of the previous day’s price or the 30-day average, counting only the gold content.
Gold loan comparisons
Muthoot Finance vs Manappuram Finance · Muthoot Finance vs IIFL Gold Loan · Manappuram Finance vs IIFL Gold Loan · SBI Gold Loan vs Muthoot Finance · Rupeek vs Muthoot Finance · Rupeek vs Manappuram Finance · Muthoot FinCorp vs Muthoot Finance · HDFC Bank Gold Loan vs SBI Gold Loan · HDFC Bank Gold Loan vs Muthoot Finance · ICICI Bank Gold Loan vs Manappuram Finance · Federal Bank Gold Loan vs SBI Gold Loan · Kotak Gold Loan vs Muthoot Finance
Tools: Gold loan calculator · Which gold loan app?
Before you apply
- Ask for the rate for your exact scheme and how often you must pay interest. Paying monthly is usually cheapest.
- Read the Key Fact Statement (KFS): it must show the APR, every charge and the total you will repay.
- Check the weight and purity recorded on your pledge receipt, and keep it safe.
- Know the auction rules: RBI requires notice before any auction, and the lender must return any surplus.
- Use our gold loan calculator to see the most you can borrow under RBI limits.
Need funds against gold or another option?
Frequently asked questions
Which bank has the lowest gold loan interest rate?
Among published figures, Federal Bank’s range starts at 8.50% and SBI’s card rates are 9.15% to 10.10%. HDFC Bank and ICICI Bank publish ranges starting at 9%.
Which NBFC has the lowest gold loan rate?
Muthoot Finance publishes a 9% minimum and Manappuram 9.90%, both for interest paid monthly.
Is gold loan interest calculated monthly?
Usually yes. Some lenders compound monthly if interest is unpaid, which raises the cost. Pay interest on time.
Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.