Short answer: Muthoot starts at 9% a year for monthly interest payments and lends from ₹1,500; IIFL starts at 9.72% (its fee table shows 11.88% to 27%) and lends from ₹3,000 for up to 24 months. Neither states a foreclosure fee.
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.
Muthoot Finance vs IIFL Gold Loan at a glance
| Muthoot Finance | IIFL Gold Loan | |
|---|---|---|
| Type | RBI-registered NBFC (gold loan specialist) | RBI-registered NBFC (IIFL Finance) |
| Loan amount | From ₹1,500; no fixed maximum (some schemes up to ₹5 crore) | From ₹3,000; no fixed maximum |
| Interest rate | From 9% a year if interest is paid monthly; compounded monthly; scheme rates not published | From 9.72% a year (fee table: 11.88% to 27%) |
| Loan-to-value (LTV) | Not stated on its pages; RBI caps it at 85% up to ₹2.5 lakh | Up to 75% of market value (as stated on its page) |
| Processing fee and charges | No processing fee listed; 1% service charge on some 12-month loans (South), 0.15% security charge elsewhere (₹100 to ₹1,000) | From ₹0, varies by scheme |
| Tenure | 12 months for the normal scheme | Up to 24 months |
| Repayment options | Monthly EMI, bullet, part-payment | Interest-only, EMI, bullet, part-payment |
| Gold accepted | 18 to 22 carat jewellery or coins | 18 to 22 carat |
| Closing early | No foreclosure charge; pay interest to date | Allowed any time; no foreclosure fee stated |
| Branches | Branches across major states (count not stated) | 2,800+ branches in 1,500+ cities |
| Online and doorstep | Gold Loan@Home (up to ₹500 charge); online top-ups via iMuthoot | Apply online and book a branch slot; one branch visit to value the gold |
| Also worth knowing | Same-day disbursal in branch; Several schemes priced by ticket size | Top-up without closing the loan; Aadhaar and PAN only; no income proof |
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 |
|---|---|---|---|---|---|
| Muthoot Finance | Minimum rate, interest paid monthly | 9% | ₹9,000 | See charges above | ₹9,000 + any charges |
| IIFL Gold Loan | Lowest advertised rate | 9.72% | ₹9,720 | See charges above | ₹9,720 + any charges |
| IIFL Gold Loan | Highest rate in fee table | 27% | ₹27,000 | See charges above | ₹27,000 + any charges |
Key differences
- Rates: Muthoot from 9%; IIFL from 9.72% (11.88% to 27% in its fee table).
- Tenure: Muthoot 12 months for the normal scheme; IIFL up to 24 months.
- Reach: IIFL states 2,800+ branches; Muthoot does not publish a count.
- Doorstep: Muthoot offers Gold Loan@Home; IIFL needs one branch visit.
Which should you choose?
Muthoot Finance may suit you if you want a doorstep loan or a very small amount.
IIFL Gold Loan may suit you if you want a tenure longer than 12 months or a top-up without closing the loan.
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 IIFL charge a processing fee on gold loans?
IIFL says fees start from ₹0 and vary by scheme. Ask for the fee and APR in the KFS.
How much can I borrow against my gold?
RBI caps gold loans for consumption at 85% of the gold’s value up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above. Try our gold loan calculator.
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: IIFL Gold Loan app review · IIFL Gold Loan lender profile · 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.