Gold loan market surges 122% in a year: Top banks with the lowest interest rates
The gold loan market surged 122% to Rs 2.94 lakh crore, driven by high gold prices and relaxed RBI regulations, with top banks offering interest rates starting at 8.35% per annum.
The gold loan market has witnessed a growth, with outstanding loans surging 122 percent year-on-year to Rs 2.94 lakh crore as of July 25, 2025, driven by high gold prices and relaxed regulations from the Reserve Bank of India (RBI). Gold loans, secured by physical gold, offer a reliable option for individuals to access quick funds for emergencies, business needs, or personal goals without permanently selling their gold assets.
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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 8.35 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 30, 2025. Interest rates offered may vary based on the lender's policies and eligibility criteria.
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Punjab National Bank provides gold loans at the lowest interest rate starting at 8.35 percent. A Rs 1 lakh gold loan with a one-year tenure translates to a monthly installment of Rs 8,715.
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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.
Indian Bank offers gold loans starting at 8.75 percent interest for a Rs 1 lakh loan over one-year, with a monthly EMI of Rs 8,734.
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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.
