Which bank offers the lowest gold loan interest rate in India? This is a common question among borrowers considering a gold loan. While a lower interest rate can reduce borrowing costs, the final rate offered may vary based on the bank, loan scheme, amount, tenure, borrower profile and purpose.
Other factors, such as processing fees, valuation charges and repayment terms, can also affect the overall cost of a gold loan.
Gold Loan Interest Rates: Quick Table
Rates and loan amounts can vary by scheme, borrower profile and date. Always check the latest official rate from banks before applying.
1. Federal Bank
- Federal Bank is one of the best banks Offering Low Gold Loan Interest Rates in India.
- Offers gold loans for personal, business and agricultural purposes.
- Funds can be used for education, agriculture, MSME, business, personal and emergency needs.
- Loan amounts range from ₹3,000 to ₹1.5 crore against eligible 22-carat gold ornaments.
- Q4 FY26 published credit pricing shows an interest rate range of 8.50% to 22.90% p.a.
- The reported mean rate was 10.82%, with an APR range of 9.58% to 23.08%.
- Offers lump-sum and EMI repayment options, depending on the product.
- Provides a Digi Gold Overdraft facility for customers who need funds as required.
- A Gold Loan Interest Rate and EMI Calculator helps customers estimate repayments.
- The minimum published rate of 8.50% p.a. makes Federal Bank a competitive option, although the actual rate depends on the applicable product and borrower profile.
2. State Bank of India
- SBI is one of India's largest banks and has an extensive branch network.
- Personal gold loan rates currently start at 9.15% p.a. for its 12-month bullet repayment product.
- EMI and overdraft gold loan options are listed at 10.10%.
- Offers demand loan, bullet repayment and overdraft facilities.
- Its branch network may be useful for borrowers who prefer in-person banking.
3. Canara Bank
- Offers gold loans through various Swarna and agricultural gold loan schemes.
- Swarna Loan rates are linked to the bank's RLLR.
- The published Swarna Loan rate is RLLR + 0.95% from August 2026.
- Agricultural gold loans are offered at 1-year MCLR + 0.10%, subject to the applicable scheme.
- Also offers Swarna overdraft and agriculture-focused gold loans.
- Can be considered for both personal and agricultural funding requirements.
4. HDFC Bank
- Offers gold loans through its private banking and digital channels.
- Q4 FY26 published data shows a gold loan IRR range of 9.00% to 19.00%.
- The average IRR for the period was 10.86%.
- Offers flexible repayment options.
- Applicable interest rates and charges depend on the loan product and borrower eligibility.
5. ICICI Bank
- Offers gold loans with digital services and multiple loan options.
- For Q1 FY26, the reported interest rate range was 9.00% to 16.00%, with a mean rate of 10.96%.
- Gold loans can be available up to ₹2 crore.
- Provides online tools and a gold loan calculator.
- Processing, valuation and foreclosure charges depend on the applicable loan terms.
6. Axis Bank
- Offers gold loans for personal and other eligible requirements.
- Interest rates range from 9.75% to 17.00% p.a.
- Loan amounts range from ₹50,001 to ₹40 lakh.
- Tenure ranges from 6 to 36 months.
- Repayment options include EMI, monthly interest and payment at the end of the tenure.
- Suitable for borrowers who prefer private banking and multiple repayment options.
7. Indian Bank
- Offers jewel loan products, including facilities for MSME borrowers.
- Published MSME jewel loan rates include 8.45% for loans up to ₹10 lakh and 8.75% for loans above ₹10 lakh, under the stated pricing structure.
- Funds can be used for working capital and other eligible business requirements.
- Borrowers should compare the applicable MSME product with general-purpose gold loan options.
8. Union Bank of India
- Offers gold loan products for retail customers, farmers and MSMEs.
- Union Krishi Kamdhenu Gold Loan Scheme is available up to ₹25 lakh.
- Union Swarna Shakti and Union MSME Gold Loan Plus are available up to ₹50 lakh.
- Rates are linked to MCLR or EBLR, depending on the product.
- Certain schemes provide special pricing for eligible women borrowers.
- Offers options for agriculture and MSME-related financing.
9. CSB Bank
- Offers multiple gold-backed loan products.
- For loans disbursed between April and June 2026, the reported interest rate range was 9.80% to 12.99%, with a mean rate of 12.51%.
- General gold loan products can offer loans up to ₹1 crore.
- Provides specific schemes for women, salaried employees and agriculturists.
- Repayment options include quarterly, half-yearly, annual and bullet repayment.
10. South Indian Bank
- Offers gold loans for personal, agricultural and business requirements.
- Selected personal gold loan products offer amounts from ₹5,000 up to ₹10 crore.
- Accepts eligible 22-carat gold jewellery as security.
- Repayment options include monthly interest servicing and EMI, depending on the product.
- Business gold loan products may also provide overdraft and bullet repayment options.
Which Bank Offers the Lowest Gold Loan Interest Rate?
There is no single lowest rate applicable to every borrower. Gold loan rates can vary based on the loan scheme, borrower category, amount, tenure and purpose.
Among the banks compared here, Federal Bank's provide a rate of 8.50% p.a. makes it a competitive option for borrowers looking for a lower gold loan interest rate. However, borrowers should compare the specific schemes for which they are eligible before making a decision.
Factors to Check Before Choosing a Low-Interest Gold Loan
A low interest rate is important, but borrowers should also consider:
- Interest rate: Check the actual rate offered rather than only the starting rate.
- Processing fees: Consider processing, valuation, documentation and other charges.
- Loan amount: Check the amount available against the weight and purity of the gold.
- Repayment options: Compare EMI, bullet, monthly interest and overdraft options.
- Tenure: Select a tenure that suits the repayment capacity.
- Foreclosure charges: Check whether charges apply when closing the loan early.
- Gold valuation: Understand how the bank determines the value of the pledged gold.
Final Thoughts
The lowest advertised interest rate does not necessarily mean the lowest overall borrowing cost. Borrowers should compare the interest rate, loan amount, processing fees, valuation charges, repayment options, tenure and foreclosure terms.
Since gold loan rates and charges can change, borrowers should verify the latest details directly with the respective bank before applying.
Tags : Low Gold Loan Interest Rates
