Gold Loans In India: Check Interest Rates From Top Lenders

Gold loans in India are one of the most convenient ways to get quick cash, especially during emergencies or to meet unexpected financial needs.

To secure a gold loan, borrowers are required to pledge their gold jewellery or ornaments to lenders. The process is simple and requires minimal documentation, making gold loans a quick and convenient option.

Banks and non-banking financial companies are key players in this space and offer varying interest rates on gold loans. Typically, securing gold loans does not require the borrower's credit history, making them a more flexible financing option. Gold loans often come at lower interest rates compared to personal loans, as borrowers offer jewellery as collateral.

The final loan amount depends on the value of the gold mortgaged and could be based on the lender's terms and conditions. Gold loans, offered by leading banks and NBFCs, can be availed at an interest rate starting at 8.75% per annum. Many lenders offer gold loans up to Rs 1.5 crore, but it may vary depending on the value of the assets pledged.

The loan tenure generally ranges between six months to three years. Many lenders also charge a processing fee of up to 2% of the total amount.

Gold loan interest rates are impacted by several factors, including gold prices. If the prices increase, lenders may offer lower interest rates on loans against gold ornaments. 

Top lenders in India offer different gold loan interest rates and varying minimum loan amounts. For instance, Manappuram Finance offers gold loans at an interest rate starting at 9.9% per annum and you can borrow a minimum amount of Rs 3,000.

HDFC Bank offers competitive rates on gold loans starting from 9.3% per annum for amounts above Rs 25,000. Axis Bank's gold loan interest rates begin at 17% per annum and the minimum borrowing amount is Rs 25,000.