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Gold Loan

Per Gram Gold Loan 2021

Last Updated 27th Jul 2021

Lowest Gold Loan Rate9.50%
Processing Fee0.25% to 1% of loan amount.
Loan Tenure1 day - 9 Months
Gold Loan per gram ₹ 11,556 depending upon the purity of the gold
Repayment OptionsEMI, Bullet Repayment Scheme and Overdraft
Apply for Gold Loan @ 9.50%* Get upto ₹ 500* Cashback

Best Gold Loan Rates of all Banks in India 2021

Bank Interest Rates Lowest EMI Per Lakh
SBI Gold Loan Rates
7.30%EMI scheme not available
Muthoot Gold Loan Rates
11.99%₹ 34,002 for 36 months
Manappuram Gold Loan Rates
9.90%EMI scheme not available
HDFC Bank Gold Loan Rates
9.50%EMI scheme not available
Yes Bank Gold Loan Rates
9.99%₹ 33,890 for 36 months
9.00%₹ 1,00,750 for 12 months
Federal Bank
8.50%EMI scheme not available
Canara Bank
7.35%EMI scheme not available
Andhra Bank
7.60%EMI scheme not available
Axis Bank
13.50%₹ 50,845 for 24 months
IndusInd Bank
11.50%EMI scheme not available
8.75%₹ 1,00,729 for 12 months
Fincare Small Finance Bank
10.99%₹ 1,34,401 for 9 Months

Online Instant Gold Loan

Gold Loan is a secured loan in which you take loan from the lender by pledging gold ornaments. Loan against gold acts as the quickest way of getting funds to fulfil your personal or business requirements as the loan disburses the same day. Most of the banks finance gold loans upto the maximum limit of 75% of the gold’s value. You can repay the loan through EMIs, bullet repayment option or overdraft. After the repayment, you get back your gold which was mortgaged earlier.

Features & Benefits of Loan against Gold

  • Faster processing: Gold loans are secured loans, and thus the eligibility criteria is very lenient with minimal documentation. Only KYC documents are required for loan approval, and hence, the disbursement of the loan is very quick within a few hours. The quick disbursal of the gold loan makes it a great option in case of emergency.
  • Multipurpose loan: Gold loan is a multipurpose loan and can be utilized for various purposes like financing a wedding, education, travel, purchasing gadgets, renovating home and any other purpose provided it is legal.
  • Low-interest rate: Gold loan interest rates are comparatively lower than other unsecured credit options like personal loan. Banks and financial institutions provide gold loans to the priority sector as well like agriculture at lower rates. This is called an agricultural gold loan.
  • Low processing and foreclosure charges: Some banks do not charge any processing and prepayment charges on gold loans and some charge very low fees and hence make it an affordable option.
  • No income proof and credit score: Banks and NBFCs usually do not consider income proof and CIBIL score of an individual while reviewing the application. So, if a person does not have a fixed income and good credit score, then also he or she can manage to get a gold loan. In a gold loan, the loan amount is sanctioned based on the market value of the gold.
  • Easily Accessible: Gold loans are easily accessible. Anyone who is above 18 years old and has gold can opt for gold loans irrespective of CIBIL history and income.
  • High Amount Eligibility: Gold prices are soaring, and the rising gold price further helps borrowers in getting a better gold loan rate per gram.

How does a Gold Loan work?

To get a loan against gold, you have to submit your gold jewellery as collateral with the bank. The procedure for gold loan is as follow:

  • Check Purity and the Type of Gold Accepted
    The first step is to check the type of gold accepted by the banks for loan. Most banks give loans against gold jewellery only. The purity of gold that you provide as collateral should be 18 carat to 22 carat.
  • Check Eligibility and Select Bank
    The next step is to check the loan amount eligibility. Gold loan eligibility is calculated on the basis of weight of gold or gold jewellery, purity of gold, LTV ratio and current market value of gold. Select the bank that offers the maximum loan amount at lowest interest rates, processing fees and foreclosure charges.
  • Apply for Loan
    Once you have finalised the bank, you can apply for a gold loan online at the bank's website or at a marketplace like MyLoanCare or offline by visiting the branch. Once you apply for a gold loan online, the bank's representative will call you to confirm the details and fix an appointment.
  • Documents Verification
    An individual needs to carry proof of residence and proof of identity to the branch along with the gold ornaments. Bank authorities verify the documents for the gold loan.
  • Gold Purity Check
    After the documents verification, you have to submit the gold to the bank. The designated authority of the banks checks the purity of the gold (18 to 22 carat) and weighs it based on the market value of the gold.
  • Loan Disbursement
    Once the financial institution is satisfied by the documents and the purity of the gold, then they will disburse the gold loan according to the LTV ratio and secures your gold as per the guidelines of RBI.

Types of Gold Loan

Agricultural Gold Loan

These are loans extended to farmers and agriculturists against gold ornaments to provide them finance for crop production expenses and investment purposes in agriculture or allied agricultural activities. Key Features of such loans are:

  • Evidence of farming activity in form of proof land records is required.
  • Written undertaking by the borrower on the purpose for which he intends to use the loan is required. Banks may also monitor the end use of such loans.
  • Loans extended for agriculture are categorized under priority sector lending and are eligible for interest subvention scheme from government, which reduces the interest cost to the borrower.
  • These loans are allowed generally for a maximum period of 3 years.
  • Some banks also offer the option of overdraft facility on such loans.
  • Interest Rate on agricultural gold loans ranges from 8.00 to 10.00 %.

Non-Agricultural Gold Loan

Non-agricultural gold loan is a loan extended to salaried, self-employed, businessmen, women, retired officials- in short to all who own a gold ornament. However, to avail a loan, you have to pledge your gold ornament. Key features of this loan are discussed above.

Documents Required for Gold Loan in Bank

You are required to provide proof of residence and identity proof for applying for gold loans.

  • Identity proof: Aadhaar card, PAN Card, Voter’s ID, Passport, Driving license, etc.
  • Proof of Residence: Aadhaar Card, Electricity Bill, Ration’s Card, Passport, Driving License etc.
  • Signature proof
  • Photograph

Gold Loan Scheme

  • Bullet Repayment: This is one of the most popular repayment options offered by gold loan banks and NBFCs, where the entire principal amount is repaid at the end of the tenure. This repayment option is more prevalent for shorter tenure jewel loans of less than 6 months, as this allows you to utilize all borrowed funds for the required purpose and hence, save you from the burden of repaying principal every year. Key Features of such schemes are:
    • Loan amount is repaid at the end of the tenure.
    • Interest is calculated on a monthly basis, with an option to pay interest only EMIs every month, where you pay monthly interest in the form of EMIs.
    • Some banks allow a lower LTV of 65% on such schemes compared to maximum LTV of 75% on other loan schemes.
  • EMI Scheme:  Though not very popular earlier, this scheme is increasingly being offered to jewel loan borrowers. You are required to pay monthly instalments or monthly EMIs to banks. This scheme is especially popular for longer tenure gold loan schemes with greater loan amounts. Key Features of such schemes are:
    • Lowest EMI for a ₹ 1 Lakh loan is ₹ 2,512 at the lowest gold loan interest rate of 9.50% and maximum tenure of 4 years.
    • Attractive LTVs of upto 90%
    • Banks call for 6 months PDCs for EMIs. Some banks exempt the borrowers from PDC requirement for larger ticket size loans
  • Overdraft Scheme:  This scheme is especially designed for businessmen and self employed who have fluctuating requirements for funds. The gold loan overdraft scheme allows you to withdraw any fund requirements or deposit any surplus in overdraft requirements within a pre approved credit limit. Interest is charged only on the utilized portion at any given point of time. Key Feature of overdraft schemes are:
    • Has an overdraft facility that allows deposit and withdrawal of funds during loan tenure
    • Interest expenses are minimized as it allows the borrower to deposit funds in the account when he has surplus funds
    • Available on all ticket sizes, though will be more suitable for relatively larger ticket size loans
    • Also comes with an option to renew the limit at the end of the tenure by paying processing fees

Gold Loan Eligibility Criteria

Gold loans are considered the easiest loans since they can be availed with minimum eligibility requirements. While the other loans are restricted to occupation and credit score, gold loans can be availed by anyone. The general eligibility criteria to avail a gold loan is listed as follows:

  • The applicant must be aged above 18 years of age.
  • Gold loans can be taken by people of all occupations and even by unemployed people.
  • The pledged gold must meet the purity mark of at least 18 karats of gold.
  • The gold can be in the form of gold jewellery, or ornaments.

Gold Loan EMI Calculator

A gold loan EMI calculator is an online tool that helps you get an estimate of your gold loan EMI based on the desired gold loan requirement, loan tenure and interest rate. The EMI calculator is a convenient, hassle-free and beneficial tool that is available on various online platforms. Gold loan EMI calculator works on the following formula:

E = P* r* (1+r)^n / ((1+r)^n – 1)

Here E is the EMI, P is the principal amount, r is the rate of interest and n is the loan tenure. This formula can also be used to calculate the EMI manually. However, using the online calculator is advisable in comparison to manual calculations, as the calculator gives accurate and reliable results.

Gold Loan Eligibility Calculator

The gold loan eligibility calculator helps you to determine your gold loan eligibility by taking into consideration various inputs such as loan amount, loan value, loan tenure, gold purity, and gold quantity, among others. The gold loan eligibility calculator not only lets you inform of whether you can avail this loan or not, but also show you a list of eligible gold loan lenders as per your requirement.

Check Gold Loan Bank Eligibility Calculators

Latest News about Gold Ornaments

  • Know Latest Hallmarking Guidelines on Gold Jewellary

    The latest Hallmarking rules have become effective from June 16 2021, and will be initially implemented in 256 districts.

    • As per these guidelines, gold of carats 20, 23 and 24 will be allowed for hallmarking.
    • Jewellers cannot sell jewellery without a hallmark.
    • Jewellers can continue to buy jewellery without hallmark from buyers.


How much gold loan can I get?

Loan amount on gold is dependent on the value of gold and Loan-to-value ratio, which is set by the banks. The higher the gold value and loan-to-value ratio, the higher the loan amount. For example, Mr. X wants to take a loan against the gold worth ₹ 2 Lakh. Bank A offers 90% of LTV while bank B offers 80% of LTV. So, X can get a loan of ₹ 1.80 Lakh from Bank A or ₹ 1.60 Lakh from Bank B, respectively. LTV ratio varies from bank to bank. Generally, it lies in the range of 70% to 85%. Gold loan per gram rates are different for different banks.
Usually, gold loan companies like Muthoot and Manappuram offer higher gold rates per gram. Current per gram gold loan rate for HDFC is ₹ 3,515 and Yes Bank is ₹ 3,515.

How can I get a gold loan?

Individuals who are residents of India and are above 18 years old can apply for a gold loan. All you have to do is provide the gold metal of 18 carats and above in the form of security and submit KYC documents to the bank.

Is the Gold Loan a good option?

Yes, a gold loan is one of the best option as the loan amount under the gold loan is disbursed quickly, has low-interest rate, processing fees and foreclosure charges. Further, there is no income requirement and credit score condition that can deter the chances of gold loan approval.

Is Gold Loan Safe?

Gold loans are safe as when you repay the loan you will get back the deposited gold. Banks keep the gold safe as per the RBI regulations. However, if you fail to repay the loan, then you may lose the gold. So, if you are not sure about your capability to pay back the gold loan, then you must not opt for this credit option.

What is the disadvantage of gold loan?

Gold loan is dependent on the value of gold and LTV ratio. So, it restricts the amount of loan one wants to raise. Further, if you fail to repay the loan, you may lose your precious metal.

What is the benefit of loan against gold?

As the gold loan disbursal rate is quite high so it can be used in the form of an emergency fund and another benefit of opting a gold loan is the interest charged on gold loans is low. Further, you can get the gold loan irrespective of the income and credit history.

How can I get the maximum amount of Gold Loan per gram?

It is advisable to choose the mortgaged jewelry with the help of following guidelines:

  • Specially minted gold coins of banks of up to 50 grams or 22 carat gold ornaments will offer you the best rates on per gram gold loan.
  • If you offer hallmarked jewelry, you will be charged a lower processing fees and hence, your cost of loan will be lower.
  • High purity gold ornaments of 22 carat will help you get higher amount of gold loan.
  • Ornaments with a lot of other stones including diamond, pearls, ruby etc might not fetch you a good loan amount as banks deduct the weight of these stones to calculate the net weight of gold and hence, the loan amount you will be eligible for can reduce depending on the net weight.
  • Avoid pledging your mangal sutras, as many banks as a policy do not accept mangal sutras as a valid mortgage, with the exception of few banks who accept mangalsutras without black beads as a valid security.
  • Try to use larger pieces of jewelry in place of smaller items of gold.

Can I extend my Gold Loan?

Yes, you can extend the gold loan if you are not able to repay the loan within the tenure. However, there are few lenders who allow gold loan extension and few also name it gold loan renewal.

Does Gold Loan increase credit score?

Gold loans can have a positive impact on your credit score or credit report if the loan is repaid on or before the tenure. Gold loan is like any other loan early payments will definitely help increase credit score as well.

Can I Renew Gold Loan Online?

Yes, there are few banks which allow you to renew a gold loan. For example with ICICI bank you can easily renew the gold loan online by using the ICICI bank mobile application and then selecting the loan account number.

Which bank is best for gold loan?

SBI is the best bank if you want to avail a lower interest rate because this banks offer loan at 7.30%. HDFC Bank can also be your option because it is entrusted by borrowers for its customer service. These two are the best gold loan bank.

Which company is best for a gold loan?

Muthoot and Manapurram are the best gold loan company & gold loan companies as they offer gold loans at attractive prices and with minimal documentation.

What is Jewel Loan?

The loan you avail by giving your jewelry as collateral is called Jewel loan. Lenders accept Gold jewelry or ornaments, which are of 18 carats and above. Anything below 18 carats is not accepted as security for availing loans against gold ornaments.

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Gold Loan News - Jul 2021
  • 2021-07-16 : Amalgamation of Bank of Baroda, erstwhile Vijaya Bank and erstwhile Dena Bank
    Bank of Baroda, on its website, stated that the IFSC codes of the erstwhile Vijaya Bank and Dena Bank were discontinued on March 1, 2021. Customers have been asked to apply for cheque books with the new MICR code at the earliest.
  • 2021-07-16 : UBI update on change in IFSC code for merged banks - Andhra Bank and Corporation Bank
    Union Bank of India (UBI) on Friday said the IFSC codes of the erstwhile e-Andhra Bank and e-Corporation Bank branches will change with effect from July 1, 2021. Customers of the erstwhile banks will have to get new cheque books with changed IFSC and MICR codes
  • 2021-07-16 : Bandhan Bank total loans rise 8% to ₹80,128 crore in Q1, deposits up 28%
    Bandhan Bank witnessed an 8% rise in its loans and advances to ₹80,128 crores in the June quarter this fiscal. The loans and advances during the same period of 2020 stood at ₹74,331 crore. Compared sequentially, it was down by 8% from ₹87,043 crores in the March quarter. Total deposits grew by 28% year-on-year to ₹77,336 crores, while the CASA (current account and savings account) deposits jumped by 48% to ₹33,197 crores in the first quarter of 2021-22.
  • 2021-07-15 : Indian Bank merger with Allahabad Bank - Change in IFSC
    The Indian Bank, which has merged with the Allahabad Bank, carried out a software migration over the weekend. As the merger got completed, new rules had been issued by the bank with regard to its services. Existing customers were asked on July 1 to get a new IFSC code to carry out online transactions smoothly.
  • 2021-07-15 : OBC & UBI merged with PNB
    After the merger of OBC and UBI with PNB in April 2020, PNB has now updated the IFSC codes of all the branches of PNB and UBI. New IFSC codes have come into effect from July 1, 2021.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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