Gold Loan Lowest Interest Rate Banks in India

A gold loan in India is a secured loan which is offered against collateral of gold | gold ornaments. Under such loan, the borrower has to pledge his/her gold | gold ornaments with the bank who lends the funds as gold loan. Gold loans can be a good source of short term cash in case of emergency. Gold Loan is available at lower interest rate than personal loan. The gold loan interest rates offered by banks is around 12% to 15% as on 29 Sep 2022 whereas the personal loan rates are in the range from 15% to 24% as on 29 Sep 2022

Gold Loan at lower Interest Rate 29 Sep 2022

BankInterest RateTenure
Uco Bank10.05% to 10.30%Maximum Tenure 60 months
South Indian Bank10.25% to 14.15%Tenure max. upto 48 Months
Kotak Mahindra Bank Limited10.25% to 24%Maximum Tenure 60 months
Bank Of India10.35% to 12.35%Maximum Tenure 60 months
Idfc Bank Limited10.49% onwardsMaximum Tenure 60 months
Axis Bank10.49% to 17.25%12 to 60 Months
Federal Bank10.49% to 17.99%Maximum Tenure of 48 Months
Indusind Bank10.49% to 31.50%Maximum Tenure 60 months
Icici Bank Limited10.5% to 19%Maximum Tenure 60 months
Bank Of Baroda10.50% to 12.50%Maximum Tenure of 48 Months
Dena Bank10.50% to 12.50%Maximum Tenure 36 months
Vijaya Bank10.50% to 12.50%Maximum Tenure 60 months
Hdfc Bank10.50% to 21.00%The loan is repayable up to 60 months
Yes Bank10.70% - 19.99%Maximum Tenure 60 months
Indian Overseas Bank10.80%Maximum Tenure 60 months
Andhra Bank10.90% to 13%Contact Bank Branch
Corporation Bank10.90% to 13%Maximum Tenure 60 months
Union Bank Of India10.90% to 13%Maximum Tenure 60 months
The Nainital Bank Limited10% to 10.50%Maximum Tenure 60 months
Catholic Syrian Bank Limited12.00% to 19.00%Maximum Tenure 60 months
Canara Bank12.40% to 13.90%Maximum Tenure of 48 Months
Syndicate Bank12.40% to 13.90%Maximum Tenure of 48 Months
Karnataka Bank Limited12.45%Tenure max. upto 24 Months
Dhanalakshmi Bank12.7% to 15.70%Max. Tenure 60 months
Tamilnad Mercantile Bank Limited14.05%Maximum Tenure 60 months

A Gold loan in India is offered by several banks at a lower interest rate starting at 12% to 15% as on 29 Sep 2022 These loans allow you to repay them in maximum of 1 Years. Banks offer the best Home loan schemes and you can repay the loan through easy EMIs.

While opting for gold loan check the interest rates in various banks and select the best offered rate out of them.

Benefit of Gold Loan

  1. You need not submit any income proof for taking gold loan as it is given against physical security of your gold | gold ornaments. Most of the banks do not ask you any income proof, still some banks may need some documentary income proof.
  2. Minimal documentation is required, in most of the cases, only identity proof and address proof is enough.
  3. Gold Loan is available at lower interest rate than personal loan. The gold loan interest rates offered by banks is around 10.5% as on 29 Sep 2022 whereas the personal loan rates are in the range from 10.5% to 14.75% as on 29 Sep 2022
  4. Fast processing and approval. Whole process does not take more than 15 minutes in many banks. You have to just deposit gold, sign required documents and receive your loan amount.
  5. Processing fee is nil or very negligible. Even if there is some processing fee, if you negotiate, it can be waived off easily.
  6. You can repay the loan and close your loan account anytime.
  7. Guarantor is not required.