Lowest Gold Loan Interest Rates

A gold loan is a secured loan availed against the mortgage of gold for a maximum tenure upto 36 months. You can compare the gold loan interest rates to avail best gold loan rate schemes. Gold loan can be availed for a lowest amount of ₹ 1,000. As per the gold loan amount, PNB can be considered as the best bank for gold as it offers gold loan for low fund requirement. Here is a list of other banks which provide the lowest amount at present.

Bank	Interest Rates	Loan Amount
Manappuram	12.00%	₹ 1,000
Federal Bank	8.50%	₹ 1,000
PNB	8.75%	₹ 1,000
Muthoot	11.99%	₹ 1,500
IIFL	9.24%	₹ 3,000

Apart from short fund requirements, gold loans are also preferred for high value needs. You can get a gold loan of upto ₹ 2 Cr depending upon the amount of gold you have. Some of the popular banks that provide the highest gold loan amount are as follows.

Bank	Loan Amount	Interest Rates
Andhra Bank	₹ 2,00,00,000	10.70% - 10.70%
Manappuram	₹ 1,00,00,000	12.00% - 29.00%
Federal Bank	₹ 75,00,000	8.50% - 11.95%
Yes Bank	₹ 50,00,000	10.99% - 14.50%
HDFC Bank	₹ 50,00,000	9.90% - 17.55%

Andhra Bank provides maximum gold loan amount upto ₹ 2 Cr for a tenure ranging between 3 months to 12 months.Other than Andhra Bank, other top lenders offering maximum gold loan amount are Manappuram, Federal Bank, Yes Bank, HDFC Bank as per the current rates as on 01 Dec 2020.

A gold loan is available for a tenure ranging between 1 day to 36 months. Presently Manappuram provides gold loan for shortest tenure for 1 day at 12.00%. Other banks which provide gold loans for shorter tenures for less than 6 months are as follows.

Bank	Minimum Tenure	Interest Rates
Manappuram	1 day	12.00% - 29.00%
PNB	1 month	8.75% - 8.75%
SBI	3 months	7.50% - 7.50%
IIFL	3 months	9.24% - 24.00%
HDFC Bank	3 months	9.90% - 17.55%

With Bullet Repayment gold loan Scheme, you don’t need to pay the loan amount during your loan tenure. You can pay the entire principal amount of the gold loan and the interest payments at the end of the loan tenure. Interest on a gold loan is however calculated every month. Banks usually provide bullet repayment schemes for shorter loan tenures.

Bank name	Gold loan Interest rate	Tenure
SBI	7.50% - 7.50%	3 months to 36 months
Federal Bank	8.50% - 11.95%	6 months to 12 months
PNB	8.75% - 8.75%	1 month to 12 months
HDFC Bank	9.90% - 17.55%	3 months to 24 months

With regular EMI option, gold loan borrowers who have cash inflows in the bank accounts can pay monthly EMI, that includes both principal component and interest payments. Some financial institutions also provide an option to pay interest as EMI, and the principal amount of the gold loan is paid at the end of the loan tenure. This scheme is especially popular for longer tenure gold loan schemes with higher loan amounts.

Bank name	Gold loan Interest rate	Processing Fee
PNB	8.75% - 8.75%	0.70% of loan amount + taxes
IIFL	9.24% - 24.00%	Nil
ICICI Bank	10.00% - 19.76%	1% of the loan amount
Yes Bank	10.99% - 14.50%	0.75% or Rs 500 to 799, whichever is higher
Muthoot	11.99% - 11.99%	0.25% to 1% of loan amount.

Bank Overdraft Scheme allows gold loan borrowers to withdraw the loan amounts up to the specified pre-approved credit limits. Borrowers can repay the loans flexible as per their convenience, and the interest is charged on the utilised portion of the gold loan amount at a given period of time. They can also renew the limit at the end of tenure by paying the processing fees. Some of the banks that offer overdraft facilities that are quite popular with borrowers are as follows.

Bank name	Interest rate	Processing Fee
Federal Bank	8.50% - 11.95%	Nil
PNB	8.75% - 8.75%	0.70% of loan amount + taxes
HDFC Bank	9.90% - 17.55%	1.50% of the loan amount
Yes Bank	10.99% - 14.50%	0.75% or Rs 500 to 799, whichever is higher

✅Which bank is best for lowest gold loan interest rates?

As per the current rates, SBI is offering the lowest interest rate on gold loan starting at 7.50% and is one of the best banks for gold loan.

✅Which bank is best for providing gold loans for maximum loan amounts?

Andhra Bank is the best bank to take a gold loan for loan amount upto ₹ 2 Cr.

✅Which bank provides Overdraft facility against gold loans at lowest interest rate?

As per the current rates, Federal Bank offers the lowest interest rate on gold loan's overdraft scheme starting at 8.50%.

✅Which bank provides a gold loan for the shortest tenure?

Presently Manappuram provides gold loan for shortest tenure for 1 day at 12.00%