Gold loan interest rates: Check the latest rates offered by banks and NBFCs

Gold loans continue to be a preferred source of quick financing for many Indians, especially those looking for short-term credit with minimal paperwork. As of March 2025, the interest rates on gold loans vary significantly across banks and non-banking financial companies (NBFCs), with annual rates ranging from as low as 8.75% to as high as 27%. This variation depends on the lender’s risk assessment, the borrower’s repayment history, and the specific terms of the loan scheme.

Among public sector banks, Canara Bank currently offers one of the most attractive interest rates at 8.75% per annum, with processing fees ranging from ₹500 to ₹5,000. Bank of Baroda follows with a rate of 8.90%, although the final cost may vary depending on applicable charges and GST. State Bank of India offers gold loan interest rates between 9% and 10.25%, along with a processing fee of 0.50% plus GST.

Private banks maintain higher interest rate ranges
Private sector banks such as ICICI and HDFC offer gold loans with higher interest ranges. ICICI Bank charges between 9.25% and 18%, depending on the loan amount and tenure, while HDFC Bank’s gold loan interest rates range from 9.30% to 17.86%. The processing fee for both banks can be up to 2% of the disbursal amount. Axis Bank currently offers gold loans at a flat rate of 17%, with a processing fee of 0.5% plus GST.

NBFCs offer flexibility, but at a cost
NBFCs, which often serve borrowers who may not have access to traditional banking, offer more flexible schemes but at higher interest rates. IIFL Finance provides gold loans with rates starting at 11.88% and going up to 27%, depending on the product. Muthoot Finance, one of the biggest players in this segment, offers loans at 22% per annum, but also provides a 2% rebate under specific repayment conditions.