Thinking of pledging your gold jewellery and getting instant cash at competitive rates in 2025? In India, gold loan interest rates generally range between 7% and 18% per annum, based on the lender, loan amount and repayment terms.
Public sector banks often offer lower rates compared to private institutions. It is important to note that gold loan interest rates are generally influenced by key factors like credit profile, loan-to-value (LTV) ratio and tenure. Some lenders provide special discounts during festive seasons or for loyal customers.
This blog takes you through the gold loan interest rates as of July 2025 so you can compare options to get the best deal!
Gold Loan Interest Rates In India For July 2025
The table below provides a quick insight into the interest rates of gold loans in India as of July 2025:
|
Bank/NBFC |
Processing Fee (₹) + GST |
| HDFC Bank | Up to 1% of disbursal amount |
| Bajaj Finserv | 0.15% of the loan amount |
| Federal Bank | Up to 3% |
| Central Bank of India | Waived off on Retail & MSME gold loans*, Up to ₹5000 for agri gold loan above ₹5 lakh |
| Canara Bank | Up to ₹2750 (varies based on scheme) |
| Muthoot Finance | Up to ₹1000 (varies based on scheme) |
| Punjab National Bank | 0.30% of loan amount |
| Manappuram Finance | ₹25 |
| Axis Bank | 0.5% of loan amount |
| State Bank of India | 0.25% of loan amount (minimum ₹500) (varies based on loan amount) |
Gold Loan Processing Fee In India, July 2025
Here is a list of the top banks and NBFCs and the respective processing fees for gold loans as of 2025:
|
Bank/NBFC |
Processing Fee (₹) + GST |
| HDFC Bank | Up to 1% of disbursal amount |
| Bajaj Finserv | 0.15% of the loan amount |
| Federal Bank | Up to 3% |
|
Central Bank of India | Waived off on Retail & MSME gold loans*,
Up to ₹5000 for agri gold loan above ₹5 lakh |
| Canara Bank | Up to ₹2750 (varies based on scheme) |
| Muthoot Finance | Up to ₹1000 (varies based on scheme) |
| Punjab National Bank | 0.30% of loan amount |
| Manappuram Finance | ₹25 |
| Axis Bank | 0.5% of loan amount |
| State Bank of India | 0.25% of loan amount (minimum ₹500) (varies based on loan amount) |
Note: The Central Bank of India gold loan processing fee is waived off on Retail & MSME gold loans till October 30th, 2025.
Eligibility Criteria For Gold Loan In India
If you are planning to apply for a gold loan in India, here is what you need to know about the eligibility criteria:
- The applicant must be at least 18 years old.
- The applicant must be the owner of the pledged gold.
- The applicant must only pledge gold jewellery or coins that meet purity standards between 18 and 22 carats.
Banks and NBFCs assess your repayment capacity based on your income documents, bank statements or credit history.
Note: According to the latest RBI rules, gold bars or unverified gold items are not accepted.
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How To Apply For Gold Loan In India
Here are the general steps to apply for a gold loan in India:
- Decide on the bank or NBFC you want to apply to.
- Check their specified eligibility criteria, which may vary from bank to bank, so ensure you match them.
- Make sure you meet the eligibility criteria, like age and gold purity.
- Visit the lender for a gold valuation to check weight and purity.
- Fill out the application form and submit the required documents.
- The lender will verify your gold and basic credit details.
After your application is approved, your gold is safely locked and pledged. The loan amount is disbursed to your bank account or by cheque. Repay the loan through EMIs or as a lump sum, based on the plan you choose.
Steps To Apply For Gold Loan Via Buddy Loan
While comparing gold loan interest rates, it is also helpful to use platforms that simplify the process of finding the right lender. Buddy Loan is one such loan aggregator that helps you explore gold loan options from multiple verified banks and NBFCs in one place.
Here are the steps to apply for a gold loan via the Buddy Loan platform:
- Go to the official Buddy Loan platform and select the gold loan option.
- Enter personal information such as name, contact details, loan amount required and location.
- Upload necessary documents like ID proof, address proof and details of the gold to be pledged.
- Buddy Loan analyses your profile and connects you with suitable gold loan providers.
- A representative will assist in evaluating your gold ornaments at an authorised centre.
Upon successful verification and valuation, the loan amount is quickly disbursed to your account.
Documents Required For Gold Loan
While the exact list of documents may vary based on the bank, here’s what you need to provide in general:
- Completed loan application form
- Identity proof such as Aadhar, PAN, Passport, Voter ID
- Address proof such as Aadhar, utility bills, passport, etc.
- Gold ownership proof, such as an invoice or self-declaration
- Passport-size photographs
Conclusion
Gold loans continue to be one of the easiest and fastest ways to access funds in India, especially when you need money urgently. With interest rates starting as low as 7 to 8% per annum and minimal paperwork, they offer a practical solution for short-term financial needs.
Considering the latest RBI rules, gold loans are now safer and more transparent. If you need funds for urgent expenses, this can be a smart option without having to sell your gold.
Just make sure to compare interest rates, check all terms and choose a trusted bank or lender before applying.
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