Top 10 Best Banks for Gold Loan in India

A gold loan is a simple way to get funds by pledging your gold jewellery with a bank. It can help you meet personal expenses, business needs, medical costs, education expenses or other urgent financial requirements without selling your gold.

However, choosing the right bank is important. Interest rates, loan amounts, processing fees, repayment options and loan tenure can vary from one bank to another. A lower interest rate can reduce your total cost, while flexible repayment options can make the loan easier to manage.

With many banks offering gold loans in India, finding the right option can take time. To help you compare them, we have listed the top 10 best banks for a gold loan in India, based on important factors such as interest rates, loan amount, repayment options, processing and overall convenience.

Best Banks for Gold Loan in India

1. Federal Bank Gold Loan

Federal Bank is the best bank for gold loan in India. The bank offers gold loans for personal, business and agricultural needs, with quick processing, minimal paperwork and flexible repayment options such as EMI and lump-sum repayment. Customers can get loans from ₹3,000 up to ₹150 lakh against eligible 22-carat gold ornaments.

Federal Bank’s gold loan interest rate ranges from 8.50% to 22.90% per annum. The actual interest rate depends on the loan type, amount and customer profile, so borrowers should check the applicable rate and charges before applying.

Federal Bank gold loans can be used for several needs, including education expenses, agricultural requirements, MSME and business needs, and emergency expenses. Women who meet the eligibility criteria can also apply for a Federal Bank gold loan, making it a useful option for different types of borrowers.

Federal Bank also provides an online Gold Loan Interest Rate and EMI Calculator to help borrowers estimate their EMI and total interest. With its high loan limit, flexible repayment options, quick processing and multiple uses, Federal Bank is a strong choice for those looking for a gold loan for education, agriculture, MSMEs, women or emergency financial needs.

2. State Bank of India Gold Loan

State Bank of India, or SBI, is one of the most well-known banks for gold loans in India. Its large branch network is a major advantage for customers who prefer face-to-face banking.

SBI currently lists its Gold Loan with rates starting from around 9.15% per annum, subject to terms and conditions.

SBI can be a good option for customers who already have an SBI account or who want to deal with a large public-sector bank.

3. Canara Bank Gold Loan

Canara Bank offers several gold loan schemes, including agricultural and Swarna loan products. Its official loan-rate page lists its Swarna schemes linked to the Repo Linked Lending Rate, with the rate depending on the particular scheme.

The bank also provides different gold loan options for different customer needs. This makes Canara Bank useful for both personal and agriculture-related borrowing.

4. Bank of Baroda Gold Loan

Bank of Baroda is another major public-sector bank offering gold loans for personal and agriculture-related requirements.

Current published information shows retail and agriculture-focused gold loan options, with rates depending on the selected product and lending terms. Publicly available 2026 information puts some Bank of Baroda gold loan rates in the high-8% to 9% range, although borrowers should confirm the applicable rate before taking the loan.

Bank of Baroda also offers a gold loan overdraft option, which can be useful when you need access to funds over time rather than taking the entire amount at once.

5. HDFC Bank Gold Loan

HDFC Bank is a popular private-sector option for borrowers who want a relatively simple application process and modern banking services.

HDFC Bank's latest published gold-loan information for the January-March 2026 period shows that the bank's gold loan IRR ranged from 9.00% to 19.00%, with an average of 10.86%. The exact rate depends on the customer and loan.

The bank lists a processing charge of up to 1% of the disbursal amount, along with valuation and other applicable charges. HDFC Bank also states that qualifying Micro and Small Enterprises taking certain fixed-rate gold loans can have no foreclosure or prepayment charge under specified conditions.

6. ICICI Bank Gold Loan

ICICI Bank offers gold loans through a private-sector banking platform with online and branch-based services.

According to ICICI Bank's published data for January-March 2026, its gold loan interest rate range was 8.55% to 16.50%, with a mean rate of 10.69%.

ICICI Bank lists gold loan amounts up to ₹2 crore, while the minimum loan amount for some new-to-bank customers differs by location. Loan tenure listed by the bank ranges from 6 to 12 months.

The bank also provides an online interest-rate and charges calculator, which can help borrowers understand the cost before taking the loan.

7. Union Bank of India Gold Loan

Union Bank of India provides several gold loan schemes for different customer groups.

Its current gold-loan rate page lists Union Swarna Shakti Loan Scheme, Union Krishi Kamdhenu Gold Loan Scheme and Union MSME Gold Loan Plus. For MSME borrowers, the listed rate is linked to EBLR, with the spread depending on the purity of gold and borrower category.

This makes Union Bank particularly useful for small businesses and self-employed borrowers who need funds against gold.

8. Indian Bank Gold Loan

Indian Bank offers jewel loans for retail and MSME customers.

Its IB MSME Jewel Loan provides funding against pledged jewellery and supports different repayment methods, including bullet repayment and EMI repayment. The bank's published rates for this product vary based on the loan amount.

Indian Bank also offers MSME Digi Jewel Loan products for working capital, asset purchases and repayment of certain business borrowings. Its published information shows rates starting from 8.65% for the specified digital jewel loan product.

9. Axis Bank Gold Loan

Axis Bank is a good option for customers who prefer private banking and digital financial services.

The bank has also introduced a gold-backed credit facility through UPI in partnership with Freecharge. Axis Bank said the product was designed for MSMEs, self-employed people and merchants, allowing eligible customers to access a gold-backed credit line digitally.

Axis Bank's published gold-loan data also shows that rates vary based on loan category, loan amount and customer relationship. Its April-June 2025 data showed a gold loan rate range of 9.40% to 19.00%.

10. Indian Overseas Bank Gold Loan

Indian Overseas Bank offers gold and jewel loan products for different customer requirements, including agriculture and business needs.

Its gold loan products can be linked to benchmark rates such as MCLR or RLLR, depending on the scheme. Different products are available for general borrowers, women, farmers and MSMEs.

How to Choose the Best Bank for a Gold Loan?

The lowest interest rate is not always the only thing you should consider. Before choosing a bank, compare these factors:

1. Gold Loan Interest Rate: A lower interest rate can reduce the total cost of the loan. However, check whether the advertised rate is a starting rate or the rate that will actually apply to you.

2. Processing Charges: Banks may charge processing fees, valuation charges, documentation charges, GST and other applicable fees. Always calculate the total cost instead of comparing interest rates alone.

3. Loan-to-Value Ratio: The amount you can borrow depends on the value and purity of your gold and the applicable lending rules. Ask the bank how much loan you can receive for each gram of eligible gold.

4. Repayment Method: Some borrowers prefer EMIs, while others prefer to repay the principal at the end of the loan period. Federal Bank, for example, states that gold loan repayment can be made through lump-sum or instalment options.

5. Loan Tenure: Check the minimum and maximum tenure before applying. A shorter tenure can reduce total interest, while a longer tenure may make repayment easier.

6. Processing Time: A gold loan is often taken when funds are needed quickly. Choose a bank that offers convenient processing and disbursement.

Final Thoughts

The best bank for a gold loan depends on your financial needs and repayment capacity. Before applying, do not look at the interest rate alone. Also check the processing fee, valuation charges, loan amount, repayment method, tenure and foreclosure charges.

Among the banks compared, Federal Bank is one of the top choices because of its flexible gold loan options, quick processing, high loan limit and repayment choices. SBI, Canara Bank, Bank of Baroda, HDFC Bank, ICICI Bank and the other banks on this list can also be good choices depending on your requirements.

Before taking a gold loan, compare the total cost of the loan and read the terms carefully. Gold loan interest rates and charges may change, so always check the latest information with the bank before applying.