Top Banks for Gold Loan in India
Best gold loan options in India as of April 2026. Interest rates start from around 8.5%–9.5% p.a. in most banks, but the actual rate you get depends on your gold purity, loan amount, location, and bank relationship.
Top Banks for Gold Loan in India (2026)
| Bank | Interest Rate (p.a.) | Max Loan Amount | Processing Fee | Key Advantages | Best For |
|---|---|---|---|---|---|
| SBI | 8.65% – 9.95% onwards | ₹50 Lakh | 0.25% – 0.50% + GST | Lowest rates, long tenure (up to 36 months), wide branch network | Overall best for most people |
| Canara Bank | 8.75% – 9.25% | ₹35 Lakh | Up to ₹2,750 + GST | Competitive rates, good for mid-size loans | Low rates + reliability |
| Bank of India | 8.80% – 9.25% onwards | ₹30 Lakh | Low | Good rates, flexible for agriculture/business | Affordable public sector |
| PNB | 8.35% – 9.25% onwards | ₹25 Lakh | 0.30% + GST | Bullet/EMI/Overdraft options | Flexible repayment |
| HDFC Bank | 9.00% – 17.86% (starts ~9-11%) | Up to ₹1 Crore | Up to 1% + taxes | Very quick disbursal, overdraft facility, good service | Speed & convenience |
| ICICI Bank | 9.25% – 19.76% | Up to ₹1-2 Crore | ~1% | Fast processing, higher loan limits | Larger loans |
Note: Rates are indicative and can change. Private banks like HDFC and ICICI often have higher effective rates than public sector banks but offer faster service and better digital experience.
Which Bank is the Best?
- Best Overall: State Bank of India (SBI) — It consistently offers among the lowest interest rates, reasonable processing fees, higher loan tenure, and branches everywhere (including in Odisha). Most people in India prefer SBI for gold loans.
- Best for Quick Disbursal: HDFC Bank — Ideal if you need money the same day.
- Best Low Rates (Public Sector): Canara Bank, Bank of India, or PNB — Slightly better than SBI in some schemes.
- If you want doorstep service & faster process: Consider NBFCs like Muthoot Finance, Manappuram, or Rupeek (rates usually 9.5%–18%, but very quick and higher LTV possible).
Important Factors to Consider (2026)
- Loan-to-Value (LTV) Ratio (RBI rules effective April 2026):
- Up to ₹2.5 Lakh loan → Up to 85% of gold value
- ₹2.5–5 Lakh → Up to 80%
- Above ₹5 Lakh → Up to 75%
- Gold must be 18–22 carat jewellery (coins/bars have restrictions in some banks).
- Tenure: Usually 12 months (bullet repayment), up to 36 months in SBI.
- Processing time: Banks → 1–3 days | NBFCs → Few hours.