Gold Loan Interest Rate Comparison: Here Are The Top 5 Banks Offering the Lowest Rates In 2025

Gold Loan Interest Rate Comparison: The demand for gold loan in India has risen exponentially in 2025 to touch 122 per cent year-on-year to Rs 2.94 lakh crore, driven by high gold prices and relaxed regulations from the Reserve Bank of India (RBI).

Backed by physical gold, gold loans provide a quick and reliable way to get funds for emergencies, business needs, or personal goals without having to sell your gold permanently.

Gold has also followed a similar pattern this year. It has given a 44 per cent return. Tata Mutual Fund, in its report has mentioned factors triggering the gold prices: 1) central banks across globe buying gold in the last 10 years, have almost doubled in last 10 years, 2) US FED rate cut by 25 bps on September 17 sparked gold price rally, global uncertainty is fueling the “flight to safety”, strong investment demand, and rupee depreciation amplifying gold returns.

Thus, the demand for gold loan has risen.

However, borrowers need to pay an interest till the maturity period of gold holding. The interest depends on bank-to-bank, starting from 8.05 per cent.

Top 5 Banks with the Lowest Gold Loan Interest Rates in 2025:

Rank	Bank Name	Interest Rate (p.a.)	Loan Tenure	Processing Fee	Loan Limit
1	Central Bank of India	8.05% – 8.35%	Up to 12 months	0.25% of the loan amount + GST	Rs. 10,000 – Rs. 40 Lakhs
2	Indian Overseas Bank	8.20% – 11.60%	Up to 12 months	Varies by loan amount	Rs. 25,000 – Rs. 50 Lakhs
3	Punjab National Bank	8.35% onwards	12 months	0.30% of the loan amount + GST	Rs. 25,000 – Rs. 25 Lakhs
4	Bank of India	8.6% – 8.75%	Up to 12 months	Up to Rs. 1,500	Rs. 20,000 – Rs. 30 Lakhs
5	State Bank of India	8.75% onwards	Up to 36 months	0.25% of the loan amount	Rs. 20,000 – Rs. 50 Lakhs

(Source:

ClearTax)