Synopsis: Gold loans are increasing in India by both volume and value, driven by rising gold prices. This upward movement of gold is positioning gold as a major retail product.
The Credit market Indicator (CMI) for supply rose to 45% in volume in the December quarter. One of the important factors of the surge in gold loans is the sharp rise in underlying asset values, which have doubled since March 2023, as per reports. Gold Loans represent the second largest retail product. This article highlights 5 best gold loan providers in India:
1. Muthoot Finance
One of the most known gold loan providers in India, they offer a variety of schemes such as Muthoot Delight loan, Muthoot Murda loan, Muthoot High Value loan, etc. They offer gold loans starting from ₹1,500 and for most schemes the maximum loan amount is ₹5 Crores, some schemes do not have maximum gold limit like Muthoot high value loan. The interest for these schemes range from 11.50% to 24%. The tenure of the loan typically goes up to 12 months. As per the RBI guidelines the loan offered on the asset value is up to 75%.
With Muthoot Finance gold loan you get free insurance coverage for the pledged gold, quick loan disbursals and attractive rates of interest, they offer complete ease along with an exemplary experience. Numerous people on the lookout for gold loan providers put their faith in us as we have the largest gold loan portfolio in the country.
2. Manappuram Finance
Manappuran Finance has a legacy of over 76 years as the best NBFC in India, they offer instant gold loans with minimal documentation, they also offer special schemes tailored for different needs. With interest rates ranging from 9.90% to 21.02% depending on the repayment and scheme. The minimum loan amount for Manappuram Finance is ₹3,000, they also offer a grace period of 3 days
The maximum loan tenure that they offer is of 12 months or 365 days with the Loan to value ratio at 75%. They also offer to transfer any other gold loans to Manappuram Finance with lower interest rates.
3. SBI Gold Loan
SBI offers one of the lowest interest rates for gold loans in the market and no processing fees with loans up to ₹3.00 Lakhs. They are a trusted and government backed institution. SBI offers different schemes based on the payment plan that you want to take, the tenure for the loans going up to 36 months. The minimum amount of loan that one has to take is ₹20,000 and the maximum amount of gold loan one can take is ₹50.00 lakhs. The rate of interest on these loans are ranging from 8.25% to 8.70%.
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4. Bajaj Finance
Bajaj Finance is one of the leading NBFCs in India, they are known for quick and customer friendly services, with quick loan disbursal, they offer loans depending on the gold amount and like any other finance bank they are capped at 75% value of the gold that they can give as loan. The loan tenure for these loans start from 1 day. Yes, one can take a gold loan for 1 day and the maximum loan tenure is 12 months. The minimum amount of loan offered is ₹5,000 with the upper limit being ₹2.00 crore. The interest rate offered on these loans range from 9.50% to 24% per annum.
5. IIFL Finance
IIFL Finance offers a quick and an easy way to meet urgent financial needs, whether it be personal, medical or educational without needing you to sell your gold with minimal documentation. They also offer gold loan top ups to borrowers who need additional funds without closing their existing loan.
The interest on these loans range from 11.88% to 27.00% per annum. They have Zero processing fees and the tenure for these loans go up to 24 months. One can get a loan against gold starting from ₹3,000 onwards.
Comparison Table
| LENDER | INTEREST RATE | MINIMUM LOAN | TENURE | LTV RATIO |
| Muthoot Finance | 11.50% onwards | ₹1,500 | 12 months | 75% |
| Manappuram Finance | 9.90% onwards | ₹3,000 | 12 months | 75% |
| SBI | 8.25% onwards | ₹20,000 | 36 months | 75% |
| Bajaj Finance | 9.50% onwards | ₹5,000 | 12 months | 75% |
| IIFL Finance | 11.88% onwards | ₹3,000 | 24 months | 75% |
Conclusion
Gold loans remain an important part of the credit ecosystem in India due to their simplicity, speed, and accessibility. While NBFCs like Muthoot Finance and Manappuram are leading the gold loan market due to quick processing and attractive schemes, banks like SBI are providing lower interest rates with higher reliability. Other players like Bajaj Finance and IIFL Finance are trying to introduce more convenience with doorstep and digital services. However, it is to be noted that the interest rates, tenure, and schemes are frequently changed based on the market conditions. It is advisable to check the official website before applying.
Written by Shrikara K
