Short answer: SBI has the lowest published gold loan rate (9.15% for a 12-month bullet loan) and no foreclosure charge, but lends from ₹20,000, lends less per gram (about 65% to 74% of value) and may need income proof above ₹2.5 lakh. Muthoot lends from ₹1,500, closer to RBI’s maximum LTV, with 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.
SBI Gold Loan vs Muthoot Finance at a glance
| SBI Gold Loan | Muthoot Finance | |
|---|---|---|
| Type | Public sector bank | RBI-registered NBFC (gold loan specialist) |
| Loan amount | ₹20,000 to ₹50 lakh (one FAQ says up to ₹1 crore) | From ₹1,500; no fixed maximum (some schemes up to ₹5 crore) |
| Interest rate | 9.15% (12-month bullet) to 10.10% (EMI and overdraft), as on 16 June 2026 | From 9% a year if interest is paid monthly; compounded monthly; scheme rates not published |
| Loan-to-value (LTV) | Margin of 35% (bullet), 28% (EMI), 26% (overdraft), i.e. about 65% to 74% | Not stated on its pages; RBI caps it at 85% up to ₹2.5 lakh |
| Processing fee and charges | 0.25% to 0.50% (pages differ); 0.25% for ₹50,000 to ₹2 lakh, minimum ₹250 + GST | No processing fee listed; 1% service charge on some 12-month loans (South), 0.15% security charge elsewhere (₹100 to ₹1,000) |
| Tenure | 12 months (bullet); up to 36 months (EMI and overdraft) | 12 months for the normal scheme |
| Repayment options | EMI, 12-month bullet, overdraft (Liquid Gold Loan) | Monthly EMI, bullet, part-payment |
| Gold accepted | 22, 20 and 18 carat ornaments; bank-sold coins (no bars) | 18 to 22 carat jewellery or coins |
| Closing early | No prepayment or foreclosure charge | No foreclosure charge; pay interest to date |
| Branches | SBI branch network | Branches across major states (count not stated) |
| Online and doorstep | Apply online or via YONO; gold valued at the branch | Gold Loan@Home (up to ₹500 charge); online top-ups via iMuthoot |
| Also worth knowing | Lowest headline rate of the four; Income proof needed above ₹2.5 lakh (pages differ) | 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 |
|---|---|---|---|---|---|
| SBI Gold Loan | 12-month bullet rate | 9.15% | ₹9,150 | ₹295 | ₹9,445 |
| SBI Gold Loan | EMI rate | 10.1% | ₹10,100 | ₹295 | ₹10,395 |
| Muthoot Finance | Minimum rate, interest paid monthly | 9% | ₹9,000 | See charges above | ₹9,000 + any charges |
Key differences
- Rate: SBI 9.15% to 10.10%; Muthoot from 9% if interest is paid monthly.
- Amount per gram: SBI keeps a 26% to 35% margin; NBFCs can lend up to RBI’s 85% for loans up to ₹2.5 lakh.
- Smallest loan: SBI ₹20,000; Muthoot ₹1,500.
- Paperwork: SBI may ask for income proof on larger loans; Muthoot needs KYC only.
Which should you choose?
SBI Gold Loan may suit you if you want a predictable published rate and do not need the maximum amount per gram.
Muthoot Finance may suit you if you need a small or urgent loan, or the most money for your gold.
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
Is a bank gold loan cheaper than an NBFC gold loan?
SBI’s published rates (9.15% to 10.10%) are among the lowest. NBFC rates start close to that but rise by scheme and payment frequency.
Why does SBI lend less per gram?
SBI keeps a margin of 26% to 35% of the gold’s value depending on the loan type, which is more conservative than RBI’s maximum.
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.