Multiple banks. Different interest rates. Call it a "conflict of interest".

    Gold Loan (Loan against Gold)

    What is a Gold Loan?

    Gold loan is a method of availing finance/ loan against your gold ornaments or jewellery such as bangles, necklaces, bracelets, earrings, pendants, watches, gold coins, etc. This gold will act as the collateral against which you can avail the loan from a lender. The loan amount will depend on the rate of the gold pledged, per gram. This is an efficient method of mobilizing personal assets in order to finance various requirements quickly.

    Top Gold Loan Providers in India

    • Axis Bank: Axis Bank offers a gold loan scheme that assures immediate loan disbursement. The minimum loan amount that can be availed through this scheme is Rs. 25,001 and the maximum gold loan amount that can be availed is Rs. 20,00,000. Customers can also earn edge loyalty points on this transaction.
    • ICICI Bank: ICICI Bank gold loan scheme can be availed with minimal documentation and has an easy loan disbursement procedure. This scheme offers a high loan amount against each gram of gold pledged with the bank and also assures a maximum loan quantum worth up to Rs. 15, 00,000.
    • Muthoot Finance: Muthoot Finance offers loan against gold at a minimum rate of Rs. 1,500 and places no maximum limit of the loan amount disbursed. There are various gold loan schemes that are designed specifically to meet the various requirements of different types of customers in India.
    • HDFC Bank: HDFC Bank offers the Sampoorna Bharosa Gold Loan scheme at an attractive rate of interest and assures instant over-the-counter loan disbursement to the borrower. The minimum gold loan amount offered by HDFC Bank is Rs. 50,000.
    • Manappuram Finance Limited: Manappuram Finance Limited offers instant loan against gold at a lower rate of interest. There are various gold loan schemes that are designed specifically to meet the various requirements of different types of customers in India. All you have to submit as a part of documentation is one identification proof – Ration card, Voter’s ID, Passport or Driving License.
    • Kotak Mahindra Bank: Kotak Mahindra Bank offers quick loan disbursement with very little documentation. A higher loan amount is offered for the gold pledged by the customer so as to offer maximum value for the same.

    Features of Gold Loan


    You can avail a gold loan from any available lender in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, further investment and so on. The purpose for which you are availing the loan is not a factor that the lender looks into while offering the same.


    The gold that has been pledged with the Bank or the financial institution acts as the security or collateral against which the loan amount is provided.

    Tenure options

    The tenure options can range from a minimum of just 7 days to a maximum of 36 months.


    The other fees and charges that might be applicable on a gold loan are – processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.

    Repayment Options

    There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are:

    • Repayment in Equated Monthly Installments (EMI)
    • Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure.
    • Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure.


    Several lenders offer the option of discount on the prevailing interest rate on the loan against gold if the borrower repays the interest regularly. This rebate can be 1% - 2% off on the original rate of interest.

    Gold Loan Interest Rates

    Gold Loan interest rate varies from lender to lender. Some lenders offer various gold loan schemes which are specifically designed to meet the requirements of borrowers from different income groups. Based on this factor, the interest rate applied on the gold loan varies as well. Generally, the gold loan interest rate in India ranges from a minimum of 14% to a maximum of 23%. In order to know more, kindly get in touch with the lender of your choice.

    Documents required for Gold Loan

    Generally, the following documents have to be provided by the borrower in order to avail the gold loan:

    • Duly filled application form
    • Passport sized photographs
    • Identity proof
    • Address Proof
    • Signature Proof
    • Form 60 or PAN card
    • Proof of age
    • Post loan disbursement documents, if any.

    Gold Loan FAQs

    1. Who can avail a gold loan?

      Any Indian citizen can avail a gold loan from banks or Non-Banking Financial Institutions (NBFCs) and generally the age criteria ranges from a minimum of 18 years to a maximum of 75 years. This might vary from lender to lender.

    2. What are the modes for repayment of loan?

      You can either directly walk into a branch to make a cash payment or pay online using the company’s web portal. Debit card, credit card and demand draft payment of gold loan is a limited option. Kindly contact your lender for more information on the same.

    3. What factors affect the loan amount received against the gold ornaments pledged with the lender?

      Factors such as rate of gold on the particular date, purity of the gold used to make the jewellery, etc. affects the loan amount that you will receive against the gold ornaments pledged with the lender.

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