Top 10 Best Banks Offering Low Gold Loan Interest Rates in India

Which bank offers the lowest gold loan interest rate in India? This is a common question among borrowers planning to raise funds by pledging gold. A lower interest rate can help reduce borrowing costs, but the final rate may differ based on the bank, loan scheme, amount, tenure, borrower profile and purpose.

Processing fees, valuation charges, repayment options and foreclosure terms can also affect the overall cost of a gold loan. The following list highlights 10 banks offering competitive gold loan options, based on its published interest rate range, loan amount, repayment flexibility and range of use cases.

1. Federal Bank

• Federal Bank is one of the best banks Offering Low Gold Loan Interest Rates in India.

• Gold loans are available for personal, business and agricultural requirements.

• The loan can be used for education, agriculture, MSME, business, personal and emergency needs.

• Loan amounts range from ₹3,000 to ₹1.5 crore against eligible 22-carat gold ornaments.

• Published Q4 FY26 credit pricing shows an interest rate range of 8.50% to 22.90% p.a.

• The reported mean rate was 10.82%, with an APR range of 9.58% to 23.08%.

• Repayment options include EMI and lump-sum repayment, depending on the product.

• The Digi Gold Overdraft facility allows customers to access funds as required against pledged gold.

• A Gold Loan Interest Rate and EMI Calculator can help estimate EMI and total interest.

• The minimum published rate of 8.50% p.a. makes Federal Bank a competitive option, although the actual rate depends on the applicable product and borrower profile.

2. HDFC Bank

HDFC Bank offers gold loans through its private banking network and digital channels.

• Q4 FY26 published data shows a gold loan IRR range of 9.00% to 19.00%.

• The average IRR for the period was 10.86%.

• The bank offers different repayment options based on the applicable product.

• Interest rates and charges depend on the loan product and borrower eligibility.

3. State Bank of India

State Bank of India is a major public-sector bank with an extensive branch network.

• Personal gold loan rates start at 9.15% p.a. for its 12-month bullet repayment product.

• EMI and overdraft options are listed at 10.10%.

• Available repayment structures include demand loans, bullet repayment and overdraft facilities.

• Its wide branch presence can be useful for borrowers who prefer in-person banking.

4. Indian Bank

Indian Bank provides jewel loan products, including options for MSME borrowers.

• Selected MSME jewel loan rates are 8.45% for loans up to ₹10 lakh and 8.75% for loans above ₹10 lakh, under the stated pricing structure.

• Funding can be used for working capital and other eligible business requirements.

• MSME borrowers should compare the applicable jewel loan scheme with other gold loan products before applying.

5. ICICI Bank

ICICI Bank provides gold loans with digital services and multiple loan options.

• Its reported Q1 FY26 interest rate range was 9.00% to 16.00%, with a mean rate of 10.96%.

• Gold loans can be available up to ₹2 crore.

• The bank provides online tools, including a gold loan calculator.

• Processing, valuation and foreclosure charges depend on the applicable loan terms.

6. Canara Bank

Canara Bank offers gold loans through Swarna and agricultural gold loan schemes.

• Swarna Loan rates are linked to the bank's RLLR.

• The published Swarna Loan rate is RLLR + 0.95% from August 2026.

• Agricultural gold loans are offered at 1-year MCLR + 0.10%, subject to the applicable scheme.

• Swarna overdraft and agriculture-focused gold loan options are also available.

• The products can cater to personal and agricultural funding requirements.

7. Axis Bank

Axis Bank offers gold loans for personal and other eligible financial requirements.

• Gold loan interest rates range from 9.75% to 17.00% p.a.

• Loan amounts range from ₹50,001 to ₹40 lakh.

• Tenure options range from 6 to 36 months.

• Repayment options include EMI, monthly interest and payment at the end of the tenure.

• The offering may suit borrowers looking for private banking services and repayment flexibility.

8. Union Bank of India

Union Bank of India provides gold loan schemes for retail customers, farmers and MSMEs.

• The Union Krishi Kamdhenu Gold Loan Scheme is available up to ₹25 lakh.

• Union Swarna Shakti and Union MSME Gold Loan Plus are available up to ₹50 lakh.

• Interest rates are linked to MCLR or EBLR, depending on the applicable product.

• Certain schemes offer special pricing for eligible women borrowers.

• The bank provides options for agriculture and MSME-related funding.

9. South Indian Bank

South Indian Bank offers gold loans for personal, agricultural and business requirements.

• Selected personal gold loan products offer amounts from ₹5,000 up to ₹10 crore.

• Eligible 22-carat gold jewellery is accepted as security.

• Depending on the product, repayment can include monthly interest servicing or EMI.

• Business gold loan products may also provide overdraft and bullet repayment options.

10. CSB Bank

CSB Bank offers several gold-backed loan products for different borrower categories.

• For loans disbursed between April and June 2026, the reported interest rate range was 9.80% to 12.99%, with a mean rate of 12.51%.

• General gold loan products can offer loans up to ₹1 crore.

• Specific schemes are available for women, salaried employees and agriculturists.

• Repayment options include quarterly, half-yearly, annual and bullet repayment.

Which Bank Offers the Lowest Gold Loan Interest Rate?

There is no single interest rate that applies to every gold loan borrower. Rates can vary according to the loan scheme, borrower category, loan amount, tenure and purpose.

Among the banks compared, Federal Bank's published minimum gold loan rate of 8.50% p.a. makes it a competitive option for borrowers looking for a lower interest rate. However, borrowers should compare the specific schemes and rates for which they are eligible before making a decision.

Factors to Check Before Choosing a Low-Interest Gold Loan

Interest rate is only one factor when comparing gold loans. Borrowers should also consider:

• Interest rate: Check the actual rate offered rather than only the starting rate.

• Processing fees: Review processing, valuation, documentation and other applicable charges.

• Loan amount: Check the amount available against the weight and purity of the gold.

• Repayment options: Compare EMI, bullet, monthly interest and overdraft facilities.

• Tenure: Select a repayment period that matches the borrower's repayment capacity.

• Foreclosure charges: Check whether charges apply when the loan is closed before maturity.

• Gold valuation: Understand how the bank determines the value of the pledged gold.

Final Thoughts

The lowest advertised interest rate does not necessarily mean the lowest overall borrowing cost. A proper comparison should consider the interest rate, loan amount, processing and valuation charges, repayment options, tenure and foreclosure terms.

In this comparison, Federal Bank is one of the best bank due to its published interest rate range of 8.50% to 22.90% p.a., loan amounts from ₹3,000 to ₹1.5 crore, flexible repayment options and gold loan facilities for different financial requirements.

The other banks listed also offer competitive gold loan products based on their respective schemes. Since interest rates, fees, loan limits and terms can change, borrowers should verify the latest details directly with the respective bank before applying.