List of top gold loan firms in India with lowest interest rates

In India, gold loans are provided by large banks and NBFCs, and their interest rates usually range from 8% to 27% p.a., which depends on certain criteria, such as the length of the loan, purity of the gold, loan-to-value (LTV) (75% maximum), and borrower type. Public sector banks generally have the lowest rates, as there is less risk to their operations, and usually they have government backing. The list below is a curated list of the top 10 providers of gold loans based on their current lowest starting interest rates, taken from reputable comparison sites. Keep in mind that these rates are usually starting rates, and these rates may differ from the final product or vary from lender to lender so be sure to check with the lender to get the current rate for your specific loan.

Central Bank of India:

The Central Bank of India is a leading provider of gold loans with some of the lowest interest rates in the industry. Its gold loan schemes offer competitive rates and target affordability for personal, business, and agricultural needs .

Its gold loan interest is among the most competitive in the market, with rates starting from as low as 7.00% per annum for agricultural loans and rates of 8.05% to 9.15% per annum generally granted on gold loans of other types .

Punjab National Bank (PNB):

Punjab National Bank (PNB) is one of the top providers for gold loans. The bank is regularly known for offering very low-interest rates compared to other banks.

While PNB typically charges a standard interest rate of 8.35% per annum for retail gold loans, this is considered low among the top banks. PNB has a unique gold loan for farmers, called ‘PNB Swarnim’, and offers interest rates starting at 8.75% per annum. You can loan anywhere from ₹25,000 to ₹25 lakh by using your gold jewellery as collateral, with a maximum repayment schedule of 36 months.

Indian Bank:

Indian Bank is a serious contender among the top gold loan lenders with the lowest interest rates on the market.

For personal and business purposes, Indian Bank gold loans with starting interest rates of 8.75 % per annum. Another benefit is that Indian Bank is offering no processing fee on their gold loans. Farmers can receive processing fees for agricultural gold loans with special rates of 7.00% per annum.

Bank of Maharashtra:

The Bank of Maharashtra is a distinguished public sector bank in India, which offers attractive gold loans at very competitive interest rates and, therefore, can be a good option if you are seeking a reasonably priced loan against your gold ornaments.

The loan amount can vary from ₹20,000 up to ₹1 crore, with a maximum of 75% of the value of the gold based on current market value. For personal and business purposes, Bank of Maharashtra gold loans with starting interest rates of 8.60% per annum. The repayment will be for a maximum period of up to 2 years, either based on EMI or bullet repayment (in full at the end of the loan tenure). The advantage of the loan arrangement is that there are no specific charging for pre-payment or part-payment of the loan amount.

Bank of India:

The Bank of India (BOI) is a leading public sector bank that has some of the lowest rates available in the loan market for gold loans, thus being a solid choice when deciding on a top gold loan lender.

BOI gold loans have interest rates starting from 8.35% per annum, which ranks them prominently among the public sector banks with the lowest gold loan interest rates. The loan amount can range from ₹20,000 to ₹30 lakh, by using your gold jewellery or coins.

Canara Bank:

Canara Bank is an important government-backed bank in India and offers some of the cheapest gold loans, beginning at 8.75% per annum. The bank can provide you with speedy loans by pledging your gold jewellery or coins. Canara Bank is a reputable choice for something you need money for immediately.

Union Bank of India:

Union Bank of India is a leading public sector bank offering competitive gold loans, making it a strong choice if you want a loan against your gold. Its interest rates are in the more affordable zone within the public sector banking space.

The bank offers a range of gold loan schemes, but its most competitive beginning interest rate is a low 8.85% per annum for its ‘Swarna Shakti’ retail scheme for women borrowers pledging 22-karat gold . The rates for women are generally lower than non-women borrowers and equally, the higher the purity of the gold pledged the lower the rates.

Kotak Mahindra Bank:

Kotak Mahindra Bank ranks as one of the largest gold lenders in India, with an interest rate beginning at 9.00% per annum, which is quite reasonable, especially in comparison to other private banks.

The bank has a special scheme called the “Gold Loan Smart Choice Loan” with an interest rate of 0.88% per month (10.56% per annum) for amounts of ₹6 lakh and above payable at the end of a 12-month period. You can receive loan amounts from ₹20,000 to ₹1.5 crore secured by gold jewelry and/or gold coins.

State Bank of India (SBI):

State Bank of India (SBI) provides an excellent option for a gold loan, as its interest rates are among the best in the sector. Rates start from as low as 8.75% per annum, making it a very cost-effective option for those who need money fast. The process is very simple and easy and requires very little documentation.

The amounts that you can borrow can vary from ₹20,000 up to ₹50 lakh, after you pledge either your gold jewellery or coins. SBI also has flexible repayment periods from 3 months to 36 months, so you can pick one which suits your budget. One of the key advantages of a SBI gold loan is that there are no charges for prepayment, and you can pay off the loan prior to the close of the agreed term.

Manappuram Finance (NBFC):

Manappuram Finance is a large gold loan lender in India, but you will not often think of Manappuram as having “the lowest interest rates.” They are one of the larger Non-Banking Financial Companies (NBFCs) fast, quick, and easy loans against gold, with a very high loan value to take out on a very quick and easy basis.

All of Manappuram’s gold loan schemes provide a varied range of gold loan schemes, with interest rates determined by plans and loan amounts. For higher plans, plans start from 9.90% per annum.*

Conclusion

To sum up, if you want the lowest interest rate for your gold loan in India, choose from government banks like the Central Bank of India, Punjab National Bank, or Indian Bank, interest starts at only 8 percent per year, these loans are safe, cheap, and get quickly approved, up to ₹50 lakh, with little paperwork involved. The private banks (Kotak, SBI) charge a bit higher (9-10 percent), and the NBFCs (like Manappuram) start around 10-12 percent interest. Please verify the latest rates with your chosen bank when you apply, and to be safe, please also keep the gold in clean condition, you need a minimum of 18K for the loan. Also, only take the loan amount you need. A gold loan is a great way to borrow money at a low interest rate to get cash in your hand quickly, without selling your gold.

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