Synopsis: This article outlines the Indian banks that are offering the lowest gold loan interest rates in 2025. Compare top lenders to find the most affordable and reliable borrowing options.
Gold loan is considered one of the quickest and simplest methods of acquiring funds. You can acquire the cash you require without a time-consuming approval procedure with the aid of your gold jewelry or assets. But among all the available banks with various offers, how would you get the best interest rates on a gold loan?
What is a Gold Loan?
Consider it to be a loan of which you deposit your gold with a bank or lender. They in turn loan you out the amount of your gold. It is a safe and favourite option since the interest rate is usually cheaper than that of personal loan.
Best Banks to with Lowest Gold Loan Interest Rates
You will save yourself a lot of interest payments by finding the right lender. According to the most recent data, the following are some of the best banks to borrow a gold loan in India in order of their initial interest rates.
The following are the rates of a sample of ₹1 lakh loan with tenure of one year. Depending on your eligibility and policies of the bank, your end rate might differ.
| No. | Bank | Interest | EMI For ₹1 Lakh |
| 1 | Punjab National Bank | 8.35% | ₹8,715 |
| 2 | Indian Bank | 8.75% | ₹8,734 |
| 3 | ICICI Bank | 8.75% | ₹8,734 |
| 4 | Canara Bank | 8.95% | ₹8,743 |
| 5 | Kotak Mahindra Bank | 9.00% | ₹8,745 |
| 6 | HDFC Bank | 9.30% | ₹8,759 |
| 7 | Bank of Baroda | 9.40% | ₹8,764 |
| 8 | Bank of India | 9.40% | ₹8,764 |
| 9 | Union Bank of India | 9.65% | ₹8,775 |
| 10 | Axis Bank | 9.75% | ₹8,780 |
| 11 | State Bank of India (SBI) | 10.00% | ₹8,792 |
| 12 | IndusInd Bank | 10.50% | ₹8,815 |
Also read: Private vs Public Sector Banks: Which Banks Are Attracting More Foreign Investors in 2025
Did You Know?
The lender determines the value of your gold and the amount of loan you can obtain is a percentage of this value. This has been commonly known as the Loan to Value (LTV) ratio.
What to Keep in Mind
- Check Processing Fees: In addition to the interest rate, certain banks also impose a processing fee that may increase the total cost of the loan, on top of the interest charged on it.
- Loan-to-Value (LTV): Inquire on the LTV rate. An improved LTV implies that you will receive more money out of your gold.
- Repayment Alternatives: Find out the flexible repayment options that fits your financial scenario.
The Bottom Line
A gold loan is the way out when one requires urgent cash. Other banks such as the Punjab National Bank, Indian Bank and ICICI bank are the banks that are already providing the lowest interest rates in the market today. It is always good to call the banks and get the most precise and current information before you come to your final decision. Shop around and see what the best bargain is and have your gold do the work.
Written by Jayanth R Pai