Synopsis: The rise in retail loans 16.6% to ₹170.2 trillion in FY26, the gold loans lead this growth as lenders pivot to more secured assets. The banks and other financial institutions that offer low-interest gold loans are discussed in this article.
As gold prices are rising, gold loans have become a go-to solution for individuals facing short-term cash needs in case of medical emergencies, education and even for business expenses. Whether to approach a financial organization or a bank, knowing the interest rates, tenure, and eligibility criteria upfront helps to make an informed borrowing decision. Banks or Financial institutions that provide low interest rate on gold loans
1. Muthoot Finance Gold Loan
- Interest Rate: Starts from around 9% p.a., going up to 24% p.a. depending on the scheme, tenure, and LTV ratio.
- Gold Purity Required: 18 carats to 22 carats. Gold coins are accepted for up to 50 grams
- Eligibility: Any individual aged above 21 years, including salaried, self-employed, students, homemakers, and pensioners
- Documents: Identity proof like Aadhaar or PAN or Passport and address proof
- Special Feature: Free insurance on pledged gold ornaments, also Zero Interest Loan (ZIL) schemes are available
2. Manappuram Finance Gold Loan
- Interest Rate: Starts from 9.90% p.a. with a base interest rate of 24% p.a.
- Gold Purity Required: 18 carats to 24 carats and must be the owner of the gold
- Eligibility: Any individual 18 years above, as there is no minimum income requirement and no credit score check
- Documents: KYC documents like Aadhaar, PAN along with a simple application form
- Special Feature: Interest calculated on daily outstanding balance and multiple scheme options with rebates
3. IIFL Finance Gold Loan
- Interest Rate: Ranges between 11.88% and 27% p.a. depending on the scheme, eligibility, and tenure.
- Gold Purity Required: 18 to 22 karat gold jewellery also 24K allowed in certain cases, but gold coins and bars are not accepted
- Eligibility: Age 18 to 70 years including salaried, self-employed, traders, farmers, also no credit score required
- Documents: Aadhaar card and PAN card with basic KYC
- Special Feature: Gold stored in steel vaults with insurance. Top-up loans available if LTV is below 75%.
4. Bank of Baroda Gold Loan
- Interest Rate: Starts at 9.00% fixed rate of interest
- Gold Purity Required: Minimum 18 grams and gold coins accepted up to 50 grams per borrower and of minimum 18 carats
- Eligibility: Indian resident who is the true owner of the gold; no speculative end-use allowed
- Documents: Basic KYC documents for identity and address proof, along gold valuation certificate arranged by the bank
- Special Feature: No pre-closure or prepayment charges and no processing charges for agri loans up to ₹3 lakh
5. Federal Bank Gold Loan
- Interest Rate: 8.15% to 22.90% p.a. depending on scheme and repayment type
- Gold Purity Required: 22 carat gold ornaments and for jewellery below 22 Kt, but not less than 18 Kt, the collateral is translated into 22 Kt equivalent for valuation
- Eligibility: Any individual aged more than 18 years, and the existing customers need no extra documents
- Documents: Aadhaar or Passport or Voter ID or Driving Licence or PAN and recent passport-size photo, with a basic KYC
- Special Feature: Free insurance on pledged gold
6. Canara Bank Gold Loan
- Interest Rate: Starts from 8.75% p.a. and can go up depending on the scheme
- Gold Purity Required: 18 to 22 carats; bank-sold minted gold coins accepted (up to 50 grams/customer)
- Eligibility: Indian residents aged 18 or above; existing Canara Bank account holders preferred; new customers need proof of creditworthiness
- Documents: KYC with Aadhaar, PAN, Voter ID, or Passport, income proof filled and signed application form and valuation certificate arranged by the bank’s appraiser
- Special Feature: No prepayment penalty, minimal processing charges and Swarna Express designed for fast-track disbursal
7. HDFC Bank Gold Loan
- Interest Rate: Starts from 11.91% p.a.
- Gold Purity Required: 18 carat to 22 carat and LTV up to 75% of gold’s market value
- Eligibility: Age 18 to 65 years salaried, self-employed, business owners, students, seniors, homemakers
- Documents: Identity proof and address proof like Aadhaar or PAN or Passport or Voter ID or Driving Licence and bank statement of last 3 months for higher amounts
- Special Feature: No foreclosure charges if the loan is repaid after three months with processing fees of 1.50% and overdraft, EMI, and bullet repayment options available
Also Read: FD Rate Update: Banks That Have Revised Their Fixed Deposit Interest Rates in 2026
Comparison Table
Conclusion
Public sector banks such as Canara Bank and Federal Bank offer some of the lowest starting gold loan rates, while NBFCs like Muthoot Finance and Manappuram Finance provide greater flexibility, higher LTV options, and faster processing. Bank of Baroda and HDFC Bank offer a strong middle ground with competitive rates and varied repayment structures. Borrowers should compare the effective interest rate, processing fees, and tenure options before pledging their gold, and always verify the latest rates directly with the respective institution.
Written by Jahnavi
