Top 20 Best Banks for Gold Loan in India
                     G O L D  L O A N S  I N  I N D I A  ·  2 0 2 6  G U I D E
Top 20 Best Banks
for Gold Loan in India
A ranked comparison of interest rates, loan limits, fees and features — led by Federal Bank at #1
Why Gold Loans Matter in India Today
Gold loans have become one of India's fastest, most accessible forms of secured credit — and 2026 has been a landmark year for the category.
₹13,400+ up to 85% 8.05%+ 6-42 mo.
Gold price per gram (2026), pushing loan Maximum Loan-to-Value (LTV) RBI permits Lowest advertised starting rates among Typical repayment tenures offered across 
eligibility to record highs for smaller gold loans leading Indian banks bank gold-loan schemes
The 2026 Landscape
●  RBI's 2026 gold-loan framework mandates a standard Key Fact Statement (KFS) disclosing every cost upfront.
●  Public sector banks (SBI, Central Bank, PNB, Canara, BoB) generally lead on headline rate; private banks lead on speed, digital access and higher loan ceilings.
●  NBFCs (Muthoot, Manappuram, IIFL) and fintechs (Rupeek, Indiagold) remain faster but pricier - this guide focuses only on banks.
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How We Ranked These Banks
Federal Bank is ranked #1, reflecting its wide loan range, transparent IBJA-linked valuation and flexible scheme mix. Banks below it are ordered on the 
criteria below.
1 Interest Rate Competitiveness A NOTE ON DATA
Headline starting rate and how wide the quoted range runs
Gold-loan interest rates change frequently with RBI 
Loan Amount & LTV repo movements, borrower profile, loan amount and 2 scheme. Figures in this deck are indicative starting rates 
Minimum/maximum loan size and % of gold value advanced compiled from public bank pages and comparison sites 
as of mid-2026.
3 Fees & Charges
Always confirm the current rate and Key Fact Statement 
Processing fee, foreclosure charge and valuation cost
(KFS) directly with the bank before applying.
4 Disbursal Speed & Access
Branch density, digital application and turnaround time
5 Scheme Flexibility
EMI, overdraft, bullet-repayment and tenure options
TOP 20 GOLD LOAN BANKS IN INDIA 3 / 30
01 Federal Bank
Private Sector Bank
★ TOP-RANKED PICK
RANK 1 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.50% – 22.90% ₹3,000 – ₹150 Lakh Nil – 0.50%
KEY HIGHLIGHTS
Floating rate linked to RBI repo (8.49% p.a.) or fixed from 8.50% p.a.
DIGI Gold Overdraft: pledge gold, withdraw up to 72% of value anytime
Doorstep gold loan via Rupeek & Oro Corp business-correspondent tie-ups
Transparent IBJA-linked gold valuation; no hidden charges
Best for: borrowers wanting the widest loan range (₹3K–₹150L) with flexible, low-cost schemes
TOP 20 GOLD LOAN BANKS IN INDIA 4 / 30
02 State Bank of India
Public Sector Bank
RANK 2 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
9.15% – 10.10% ₹20,000 – ₹50 Lakh 0.25% – 0.50%
KEY HIGHLIGHTS
India's largest lender — widest branch and CSP network for gold loans
Choice of EMI, overdraft, or bullet repayment
No income proof or guarantor required
Free prepayment / foreclosure at any time
Best for: borrowers who want the trust and reach of India's largest bank
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Central Bank of India Public Sector Bank03
RANK 3 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.50% – 8.80% ₹10,000 – ₹40 Lakh 0.50% (₹250–₹5,000)
KEY HIGHLIGHTS
Among the lowest headline starting rates in the market
Disbursal reported in as little as 5 minutes after appraisal
Interest-upfront option: pay interest first, principal at tenure-end
Minimal documentation — ID and address proof only
Best for: rate-sensitive borrowers chasing the lowest starting interest
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Punjab National Bank Public Sector Bank04
RANK 4 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.50% – 9.25% ₹25,000 – ₹25 Lakh 0.30% (min ₹500)
KEY HIGHLIGHTS
Open to salaried, self-employed, pensioners, students & homemakers
Repay in 12 monthly instalments or two half-yearly instalments
Standard margin of 25% (30% for bullet repayment option)
Accepts gold coins/jewellery of 18–22 carat purity
Best for: existing PNB customers wanting low, stable PSU pricing
TOP 20 GOLD LOAN BANKS IN INDIA 7 / 30
Canara Bank Public Sector Bank05
RANK 5 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.75% – 9.30% ₹5,000 – ₹35 Lakh 0.50% (min ₹500)
KEY HIGHLIGHTS
Three tailored schemes: Swarna Loan, Swarna OD & Swarna Express
Loan up to 70% of appraised gold value
No prepayment penalty on early closure
Fast disbursal with minimal paperwork
Best for: borrowers who want scheme flexibility (term loan / OD / express)
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Bank of Baroda Public Sector Bank06
RANK 6 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.90% – 9.40% Up to ₹50 Lakh Nil up to ₹3L, then 0.50%
KEY HIGHLIGHTS
8.85% p.a. on Retail Gold Loans; 8.30%–9.05% on Agri Gold Loans
No processing fee on loans up to ₹3 lakh
No guarantor or income proof required
Loan pricing is not linked to credit score
Best for: small-ticket borrowers wanting zero processing fee under ₹3L
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Indian Bank Public Sector Bank07
RANK 7 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.50% – 8.80% Up to ₹50 Lakh Nil
KEY HIGHLIGHTS
Jewel Loan scheme with no processing fee at all
Up to 75% loan-to-value of gold's market value
Special consideration for women applicants and senior citizens
Strong South India branch density for gold appraisal
Best for: borrowers who want a fee-free PSU gold loan
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08 Union Bank of India
Public Sector Bank
RANK 8 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.85% to 10.40% Up to ₹20 Lakh Low, scheme-based
KEY HIGHLIGHTS
Up to ₹20 lakh for priority-sector borrowers, ₹10 lakh for others
Agricultural and non-agricultural gold loan variants
Wide rural and semi-urban branch coverage
Simple KYC-based documentation
Best for: priority-sector and rural/agri borrowers
TOP 20 GOLD LOAN BANKS IN INDIA 11 / 30
HDFC Bank Private Sector Bank09
RANK 9 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
9.00% to 19% From ₹25,000 Up to 1%
KEY HIGHLIGHTS
Up to 75% loan-to-value of gold's appraised worth
No foreclosure charges after 3 months
EMI, bullet repayment, or interest-upfront options
Special discounted rates for select existing customers
Best for: HDFC customers wanting fast, digitally-serviced disbursal
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ICICI Bank Private Sector Bank10
RANK 10 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
8.55% – 16.50% onwards ₹50,000 – ₹1 Crore 1.0%
KEY HIGHLIGHTS
One of the highest loan ceilings among banks — up to ₹1 crore
Fast, largely digital application and appraisal process
Secure in-branch gold storage for the loan tenure
Simple documentation for existing account holders
Best for: high-value borrowers needing large-ticket gold loans
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Axis Bank Private Sector Bank11
RANK 11 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
9.75% – 17.00% ₹25,001 – ₹40 Lakh 0.50%
KEY HIGHLIGHTS
Disbursal reported within 60 minutes of approval
150 Axis eDGE reward points credited on disbursal
Only PAN and Aadhaar needed for basic KYC
Rate varies materially by borrower profile — compare your actual offer
Best for: existing Axis customers who value speed and rewards
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Kotak Mahindra Bank Private Sector Bank12
RANK 12 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
9.00% – 24.00% ₹20,000 – ₹1.5 Crore Up to 2%
KEY HIGHLIGHTS
Very high loan ceiling — up to ₹1.5 crore against gold
Higher loan-to-value offered versus several peer private banks
Tenure options extending up to 4 years
Rate is heavily profile- and discretion-based — get a written quote
Best for: large borrowers who can negotiate a strong rate on profile
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IDFC FIRST Bank Private Sector Bank13
RANK 13 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
9.84% – 20% onwards* Scheme-based Scheme-based
KEY HIGHLIGHTS
Digital-first application with doorstep gold-loan pickup in select cities
Positioned in the competitive private-bank rate cluster
App-based tracking of pledge and repayment status
*Indicative — confirm current rate on IDFC FIRST's website before applying
Best for: digitally-inclined borrowers wanting doorstep service
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Bank of India Public Sector Bank14
RANK 14 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~8.50% – 9.00% onwards* Scheme-based Low, PSU-standard
KEY HIGHLIGHTS
'Star Gold Loan' scheme available across its PSU branch network
Positioned within the competitive PSU pricing band
Agricultural and personal-purpose variants available
*Indicative — confirm current rate directly with the bank
Best for: PSU-loyal borrowers in Bank of India's service areas
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IDBI Bank Public Sector Bank15
RANK 15 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~8.70% – 9.50% onwards* Scheme-based Low, PSU-standard
KEY HIGHLIGHTS
Gold loan scheme for personal, business & agricultural purposes
Falls within the broader PSU/private competitive rate band
Straightforward branch-based appraisal and disbursal
*Indicative — confirm current rate directly with the bank
Best for: existing IDBI account holders seeking a familiar branch process
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UCO Bank Public Sector Bank16
RANK 16 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~8.50% – 9.40% onwards* Scheme-based Low, PSU-standard
KEY HIGHLIGHTS
PSU gold loan scheme with competitive, RBI-linked pricing
Reasonable choice for eastern & northeastern India borrowers
Simple KYC-based documentation
*Indicative — confirm current rate directly with the bank
Best for: borrowers in UCO's strong eastern-India branch belt
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17 Bank of Maharashtra
Public Sector Bank
RANK 17 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~8.50% – 9.25% onwards* Scheme-based Low, PSU-standard
KEY HIGHLIGHTS
'Maha Gold Loan' scheme for personal & agricultural needs
Strong presence across Maharashtra and neighbouring states
Priced within the competitive PSU band
*Indicative — confirm current rate directly with the bank
Best for: borrowers in Maharashtra's semi-urban and rural belt
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South Indian Bank Private Sector Bank18
RANK 18 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~9.25% – 14.80% onwards* Scheme-based Scheme-based
KEY HIGHLIGHTS
Kerala-origin bank with a long-standing gold-loan heritage
Deep branch density across South India for quick appraisal
Multiple tenure and repayment options
*Indicative — confirm current rate directly with the bank
Best for: South Indian borrowers wanting a specialist regional lender
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Karnataka Bank Private Sector Bank19
RANK 19 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~10.30% – 11.00% onwards* Scheme-based Scheme-based
KEY HIGHLIGHTS
Regional private bank with dedicated gold-loan counters
Strong footprint across Karnataka and neighbouring states
Straightforward, branch-led appraisal process
*Indicative — confirm current rate directly with the bank
Best for: Karnataka-based borrowers preferring a regional private bank
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City Union Bank Private Sector Bank20
RANK 20 OF 20
INTEREST RATE  (P.A.) LOAN AMOUNT PROCESSING FEE
~9.50% – 11.70% onwards* Scheme-based Scheme-based
KEY HIGHLIGHTS
Tamil Nadu-based bank with a historically strong gold-loan book
Well suited to small-town and semi-urban borrowers
Quick, relationship-driven branch appraisal
*Indicative — confirm current rate directly with the bank
Best for: Tamil Nadu borrowers wanting a trusted community bank
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All 20 Banks at a Glance
Indicative starting interest rates (p.a.) — verify current rates with each bank before applying.
# Bank Type Rate (p.a.) # Bank Type Rate (p.a.)
1 Federal Bank Private 8.50% – 22.90% 11 Axis Bank Private 9.75% – 17.00%
2 State Bank of India Public 9.15% – 10.10% 12 Kotak Mahindra Bank Private 9.00% – 24.00%
3 Central Bank of India Public 8.50% – 8.80% 13 IDFC FIRST Bank Private ~9.84% – 20% 
onwards*
Public ~8.50% – 9.00% 
4 Punjab National Bank Public 8.50% – 9.25% 14 Bank of India onwards*
15 IDBI Bank Public ~8.70% – 9.50% 
5 Canara Bank Public 8.75% – 9.30% onwards*
16 UCO Bank Public ~8.50% – 9.40% 
6 Bank of Baroda Public 8.90% – 9.40% onwards*
17 Bank of Maharashtra Public ~8.50% – 9.25% 
7 Indian Bank Public 8.50% – 8.80% onwards*
18 South Indian Bank Private ~9.25% – 
8 Union Bank of India Public 8.85 to 10.40% 14.80% 
onwards*
9 HDFC Bank Private 9.00% - 19% 19 Karnataka Bank Private ~10.30% – 
11.00% 
onwards*
10 ICICI Bank Private 8.55% – 16.50% 20 City Union Bank Private ~9.50% - 11.70% 
onwards onwards*
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Understanding LTV & RBI's 2026 Gold Loan Rules
Loan-to-Value (LTV) is the percentage of your gold's market value that a bank will lend. It is the single biggest driver of how much cash you can raise.
Loans up to ₹2.5 lakh Up to 85% LTV
WHAT CHANGED IN 2026
Highest LTV band under RBI's 2026 framework
●  Mandatory Key Fact Statement (KFS) disclosing every fee 
before you sign
Loans ₹2.5 – ₹5 lakh Up to 80% LTV
Mid-tier band, common for salaried borrowers ●  Standardised net-weight assaying so non-gold parts are 
excluded from valuation
Loans above ₹5 lakh Up to 75% LTV
●  Gold price for valuation is the lower of the 30-day average or 
Standard band for larger, high-value gold loans
prior day's IBJA closing price
●  Only Scheduled Commercial Banks may offer the highest 
(85%+) LTV tier
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Fees & Charges to Watch Out For
The advertised interest rate is only part of the true cost. Compare these charges across banks before you commit.
1 Processing Fee 2 Valuation / Appraisal Charge
Typically 0.25%–2% of the loan amount; several PSU banks waive it below ₹3 lakh. Fee for assaying gold purity and weight; often bundled into processing fee.
3 Foreclosure / Prepayment Charge 4 Late-Payment / Auction Risk
Most banks now allow free foreclosure after a short lock-in (often 3 months). Missed interest payments can trigger penalties and, ultimately, gold auction.
5 GST on Fees 6 Renewal / Overdraft Charges
18% GST applies on top of processing and other service charges. Overdraft-linked gold loan schemes may carry annual renewal charges.
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Documents Required & Eligibility
Requirements are broadly consistent across banks. Federal Bank's published checklist (below) is a representative example.
ELIGIBILITY DOCUMENTS FOR NEW CUSTOMERS
✓  Any individual aged 18 years or above Proof of Identity
Aadhaar / Passport / Voter ID / Driving Licence / PAN Card
✓  Must be the true owner of the gold pledged Address Proof
Aadhaar / Ration Card / Electricity Bill / Lease Agreement / Passport
✓  No minimum income or credit-score requirement at most banks
Photograph
One recent passport-size photograph
✓  Gold must generally be 18–22 carat jewellery or bank-sold coins (usually 
capped at 50g of coins per borrower) Existing customers
Usually no extra documents needed — KYC already on file
✓  Can be availed for personal, business or agricultural purposes
TOP 20 GOLD LOAN BANKS IN INDIA 27 / 30
How to Choose the Right Gold Loan Bank
Cost-Sensitive Borrower Large-Ticket Borrower
Can wait 1–2 days and wants the lowest effective rate. Needs a high loan ceiling (₹50L–₹1.5 crore) against 
substantial gold holdings.
Speed-First Borrower Regional / Relationship Borrower
Needs funds fast and values doorstep or digital-first service. Prefers a bank with deep local presence and existing 
relationship.
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Smart Borrower Tips & Risks to Know
Compare the effective cost, not just the rate Always ask for the Key Fact Statement (KFS)
Factor in processing fees, valuation charges and foreclosure terms — two banks quoting the RBI's 2026 rules make this mandatory. It discloses every charge in one standard document 
same rate can differ meaningfully in total cost. before you sign.
Don't over-borrow against your gold Understand the auction process
Taking the maximum LTV increases your risk of a shortfall notice if gold prices dip during the If interest and principal go unpaid, banks can auction pledged gold after due notice — know 
loan tenure. the timeline before you pledge.
Check purity and per-gram rate policy Keep repayment proof and gold receipts safe
Ask exactly how the bank assays purity and which day's IBJA price it uses — this materially Retain the pledge card and all payment receipts until your gold is physically returned to you.
affects your loan amount.
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K e y  Ta k e a w a y
Federal Bank leads a strong field of 20 banks —
but the “best” bank depends on your priority.
Rate-sensitive borrowers should compare Federal Bank, SBI, Central Bank of India, PNB and Canara Bank; those needing scale or speed 
should look to Kotak, ICICI or Federal Bank's doorstep partners.
IMPORTANT DISCLAIMER
This presentation is for general informational purposes only and is not financial advice. Interest rates, fees, loan limits and LTV shown are indicative, sourced 
from public bank pages and comparison sites as of mid-2026, and change frequently. Always verify current terms directly with the bank and read the Key Fact 
Statement (KFS) before applying.
Thank you
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