Short answer: Kotak offers gold loans for up to 4 years at 9% to 20%, but has a lock-in of 5 to 12 months and a 2% prepayment charge, and its own page conflicts on the processing fee. Muthoot Finance starts at 9%, with no foreclosure charge and doorstep service.
Last verified: 12 October 2026 from each company’s official website and, where marked, its Google Play listing. Rates and fees change; the lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms. FundsTiger does not rank lenders.
Kotak Gold Loan vs Muthoot Finance at a glance
| Kotak Gold Loan | Muthoot Finance | |
|---|---|---|
| Type | Private sector bank | RBI-registered NBFC (gold loan specialist) |
| Loan amount | Not published | From ₹1,500; no fixed maximum (some schemes up to ₹5 crore) |
| Interest rate | 9% to 20% a year by loan type, amount and tenure; 0.88% a month above ₹8 lakh for over 12 months | From 9% a year if interest is paid monthly; compounded monthly; scheme rates not published |
| Loan-to-value (LTV) | As prescribed by RBI | Not stated on its pages; RBI caps it at 85% up to ₹2.5 lakh |
| Processing fee and charges | 2% + GST in the charges table (the FAQ on the same page says no processing fee); valuation ₹350 to ₹1,000 | No processing fee listed; 1% service charge on some 12-month loans (South), 0.15% security charge elsewhere (₹100 to ₹1,000) |
| Tenure | 6 months to 4 years | 12 months for the normal scheme |
| Repayment options | Interest monthly, quarterly or half-yearly; principal at maturity | Monthly EMI, bullet, part-payment |
| Gold accepted | 18 carat and above | 18 to 22 carat jewellery or coins |
| Closing early | Lock-in of 5 to 12 months by product, then 2% + taxes on the amount prepaid | No foreclosure charge; pay interest to date |
| Branches | Kotak gold loan branches | Branches across major states (count not stated) |
| Online and doorstep | Apply online; approval within 4 hours (claimed) | Gold Loan@Home (up to ₹500 charge); online top-ups via iMuthoot |
| Also worth knowing | Open to non-Kotak customers; Longer tenure (up to 4 years) | Same-day disbursal in branch; Several schemes priced by ticket size |
RBI limits apply to every regulated lender: from April 2026, a gold loan for personal use can be at most 85% of the gold’s value up to ₹2.5 lakh, 80% from ₹2.5 lakh to ₹5 lakh and 75% above, with interest due at maturity counted for bullet loans. Lenders can lend less. Check how much your gold can raise with our gold loan calculator.
What a ₹1 lakh gold loan for 12 months would cost
We costed the same loan on each lender’s published rates, assuming you pay interest every month and repay the principal at the end. Paying interest less often, or compounding, raises the cost.
| Lender | Scenario | Rate a year | Interest for the year | Fees | Total cost |
|---|---|---|---|---|---|
| Kotak Gold Loan | Low end of range, 2% fee | 9% | ₹9,000 | ₹2,773 | ₹11,773 |
| Kotak Gold Loan | High end of range | 20% | ₹20,000 | ₹2,773 | ₹22,773 |
| Muthoot Finance | Minimum rate, interest paid monthly | 9% | ₹9,000 | See charges above | ₹9,000 + any charges |
Key differences
- Tenure: Kotak 6 months to 4 years; Muthoot 12 months for the normal scheme.
- Closing early: Kotak lock-in, then 2% + taxes; Muthoot nil.
- Fee: Kotak 2% + GST (FAQ says nil); Muthoot no processing fee listed.
- Interest payment: Kotak monthly, quarterly or half-yearly; Muthoot cheapest when paid monthly.
Which should you choose?
Kotak Gold Loan may suit you if you want a long tenure with interest paid quarterly or half-yearly.
Muthoot Finance may suit you if you may close the loan early or need a small amount.
Whichever you pick, compare the APR in the KFS you are actually offered, not the advertised starting rate.
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.
Want to see offers from several RBI-regulated lenders in one place?
Frequently asked questions
Does Kotak charge a processing fee on gold loans?
Its charges table says 2% + GST, while an FAQ on the same page says there is no processing fee. Ask for the KFS before you pledge.
Can I prepay a Kotak gold loan?
After a lock-in of 5 to 12 months depending on the product, with a 2% + taxes charge on the amount prepaid (nil for small business loans up to ₹50 lakh).
Are these lenders RBI-regulated?
The loans described here are given by RBI-registered NBFCs or banks named in the table. Check the lender named in your loan agreement on RBI’s digital lending app list.
Where do these figures come from?
From each company’s official website and, where noted, its Google Play listing, checked on 12 October 2026. Where a company’s own pages disagree, we show both figures.
Sources
Read more: Gold loan rates of 10 lenders · Gold loan calculator · All loan app reviews · Lender directory
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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.