Gold loans, backed by the security of physical gold, have become a trusted solution for individuals seeking immediate funds for emergencies, business ventures, or personal aspirations. These loans provide a practical way to unlock the value of this precious metal without parting with it permanently.
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Borrowers have a wide range of competitive gold loan options to choose from — with leading banks and NBFCs now offering interest rates starting as low as 8 percent per annum. Here are the top banks offering the lowest interest rate on gold loans, as per data compiled by Bankbazaar.com as on September 1, 2025. Interest rates offered may vary based on the lender's policies and eligibility criteria.
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Indian Bank provides gold loans at the lowest interest rate starting at 8 percent. A Rs 1 lakh gold loan with a one-year tenure translates to a monthly installment of Rs 8,699.
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Punjab National Bank offers gold loans starting at 8.35 percent interest for a Rs 1 lakh loan over one-year, with a monthly EMI of Rs 8,715.
Bank of India offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate starting at 8.6 percent, resulting in a monthly EMI of Rs 8,727.
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Canara Bank offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate starting at 8.90 percent, resulting in a monthly EMI of Rs 8,741.
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Kotak Mahindra Bank offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate of 9 percent onwards. This results in a monthly EMI of Rs 8,745.
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ICICI Bank offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate of 9.15 percent onwards. This results in a monthly EMI of Rs 8,752.
HDFC Bank offers an interest rate starting at 9.30 percent on gold loans of Rs 1 lakh with a one-year tenure. This results in a monthly EMI of Rs 8,759.
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Bank of Baroda offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate starting at 9.40 percent, resulting in a monthly EMI of Rs 8,764.
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Union Bank of India offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate starting at 9.65 percent, resulting in a monthly EMI of Rs 8,775.
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Axis Bank offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate of 9.75 percent onwards. This results in a monthly EMI of Rs 8,780.
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State Bank of India, the country's largest public sector bank, offers a gold loan with interest rate starting at 10 percent on gold loans of Rs 1 lakh with a one-year tenure. This translates to a monthly EMI of Rs 8,792.
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IndusInd Bank offers gold loans of Rs 1 lakh with a one-year tenure at an interest rate starting at 10.50 percent, resulting in a monthly EMI of Rs 8,815.
