Top 20 Best Banks Offering Low Gold Loan Interest Rates in India
                     I N D I A   ·   2 0 2 6  E D I T I O N   ·   B A N K - W I S E  R A T E  G U I D E
Top 20 Best Banks Offering
Low Gold Loan Interest Rates in India
Data compiled September 2026  ·  Sources: Federal Bank official website, RBI 2026 gold-loan guidelines
and leading market rate trackers (see closing slide for full source list)
W H A T ' S  I N S I D E  T H I S  D E C K
A Complete, Source-Checked Gold Loan Rate Guide
30 slides covering the rules, the rankings and the fine print.
Gold Loan Basics & RBI 2026 Rules Full 20-Bank Comparison Table
1 5
What a gold loan is, how rates are set, and the LTV framework. Every bank, rate, tenure and LTV on one page.
Featured Pick — Federal Bank Smart Tips & Bank vs NBFC
2 6
A deep look at official rates, schemes and loan terms. How to actually land the lowest rate you qualify for.
Ranks #2–#10 Key Takeaways & Sources
3 7
Public sector banks leading on the lowest headline rates. Recap plus the complete list of references used.
Ranks #11–#20
4
Private sector banks and other strong value options.
Top 20 Best Banks for Gold Loans in India  ·  2026 2
G O L D  L O A N S  1 0 1
What Is a Gold Loan — and Why It's So Popular
Secured Against Your Gold Loan Value Is Set by LTV
You pledge gold jewellery or coins (usually 18–22 carat) as Banks lend a percentage of the gold's market value (the Loan-
collateral, and the bank lends against its assessed value. to-Value or LTV ratio), capped by RBI rules.
Fast, Low-Paperwork Disbursal Multi-Purpose Funding
Because the loan is fully collateralised, most banks sanction and Used for personal needs, weddings, education, business 
disburse funds the same day, with only KYC needed. working capital, and agricultural expenses alike.
Across India, gold loan interest rates broadly range from about 8% to 27% p.a. — this guide focuses on the 20 banks offering the 
lowest starting rates.
Top 20 Best Banks for Gold Loans in India  ·  2026 3
H O W  P R I C I N G  W O R K S
Key Factors That Influence Your Gold Loan Rate
Lender Type LTV Ratio Chosen
Public sector banks tend to price lowest, followed by private Under RBI's 2026 tiered rules, smaller loans can access a 
banks, then gold-loan NBFCs — which trade a rate premium for higher LTV — and often a more attractive rate — than large-
speed. ticket loans.
Loan Amount & Tenure Relationship & Repayment Mode
Existing account holders, salaried applicants and EMI-based 
Longer tenures and larger ticket sizes can shift pricing; bullet-
repayment often unlock preferential pricing over walk-in, bullet-
repayment loans are capped at 12 months by RBI.
only loans.
Rule of thumb: the headline "rate" is only the starting point — always compare it alongside LTV, processing fees and foreclosure 
terms.
Top 20 Best Banks for Gold Loans in India  ·  2026 4
R E G U L A T O R Y  B A C K D R O P
RBI's 2026 Gold Loan Framework, In Brief
The rules that shape how much every bank on this list can actually lend you.
M A X  L T V M A X  L T V M A X  L T V
85% 80% 75%
Loans up to ₹2.5 lakh Loans ₹2.5 – 5 lakh Loans above ₹5 lakh
Bullet-repayment loans are capped at a 12-month tenure by RBI.
A standardised Key Fact Statement (KFS) is now mandatory before you sign — it must show the all-in cost.
Interest is charged on a daily reducing balance, not a flat basis, lowering the effective cost.
Top 20 Best Banks for Gold Loans in India  ·  2026 5
B E F O R E  Y O U  D I V E  I N
How This Top 20 List Was Ranked
Federal Bank is intentionally placed first as this guide's Featured Bank, with 
D A T A  S O U R C E S
rate data taken directly from its official pages.
federal.bank.in/gold-loans
The remaining 19 banks are ordered by their lowest publicly quoted "starting 
from" gold loan interest rate. federal.bank.in/gold-loans-interest-rate
Federal Bank quarterly Credit Pricing disclosure (Q4 FY26)
Only scheduled public and private sector banks are included — NBFCs and 
gold-loan companies are referenced for context only. RBI 2026 gold-loan LTV & Key Fact Statement guidelines
Live bank-wise rate trackers & aggregators (RatesToday, 
ClearTax and others)
Rates shown throughout are "starting from" figures as of September 2026, 
vary by borrower profile, amount, tenure and scheme, and change 
periodically — always confirm the current rate with the bank before applying.
Top 20 Best Banks for Gold Loans in India  ·  2026 6
FEATURED BANK — #1
Federal Bank Gold Loans
Official product data from federal.bank.in/gold-loans
Instant sanction, hassle-free processing Low rates of interest with no hidden charges
Minimal paperwork and quick disbursement Flexible repayment — lumpsum or EMI, flexible tenure
Higher per-gram gold valuation rates Loan amount: ₹3,000 up to ₹150 lakh (₹1.5 crore)
Security: pledge of 22-carat gold ornaments (coins up to 50g) For personal, business and agricultural purposes alike
Doorstep Gold Loans:  delivered via fintech partners Rupeek, Digi Gold Overdraft:  pledge gold, keep it safely stored with the bank, and 
OroCorp, Yellow Fintech & Manipal Fintech in select cities. draw funds only when you actually need them.
Top 20 Best Banks for Gold Loans in India  ·  2026 7
FEDERAL BANK — RATES
Interest Rates, Schemes & Loan Details
Fed Smart Saver Gold Loan General Gold Loan (Floating)
8.15% p.a. onwards 8.99% p.a. onwards
Lowest-rate scheme — ideal for cost-conscious borrowers Standard scheme, rate moves with market conditions
General Gold Loan (Fixed) Agri Gold Loan
9.97% p.a. onwards 8.99% p.a. onwards
Predictable EMI with a fixed rate for the full tenure For farmers — up to 90% of gold value, up to ₹150 lakh
Official regulatory disclosure (Q4 FY26, dated 21 May 2026):  Range of Interest 8.50% – 22.90% p.a.   |   Mean of Interest 
10.82%
Loan Amount Tenure Max LTV Collateral
₹3,000 – ₹150 lakh Up to 36 months Up to 75% (General) 22-carat gold ornaments
Source: federal.bank.in/gold-loans and federal.bank.in/gold-loans-interest-rate. Rates are indicative, scheme-specific and subject to change — confirm the current rate at your branch or with FedNet before 
applying.
Top 20 Best Banks for Gold Loans in India  ·  2026 8
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Bank of Maharashtra
#2
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Nil / minimal fee
8.50% p.a. onwards
Loan Tenure Up to 36 months
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
One of the lowest headline gold loan rates of any bank in India today — a strong first call for rate-sensitive borrowers.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 9
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Indian Bank
#3
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Nil on several schemes
8.50% – 10.40% p.a.
Loan Tenure Up to 12 months
Indicative Loan Amount ₹25,000 – ₹10 lakh
WHY IT  MAKES THE LIST
Nil processing fee on several schemes, paired with fast, same-day disbursal.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 10
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Bank of India
#4
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Nominal, bank-set
8.60% p.a. onwards
Loan Tenure Up to 36 months
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
Competitive PSU pricing backed by same-day disbursal across its branch network.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 11
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Canara Bank
#5
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.25% (min ₹500 – max ₹5,000)
8.75% – 9.60% p.a.
Loan Tenure 12 – 24 months
Indicative Loan Amount ₹5,000 and above
WHY IT  MAKES THE LIST
The popular Swarna Overdraft scheme gives flexible drawing power against pledged gold.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 12
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Central Bank of India
#6
Public Sector Bank
Max Loan-to-Value (LTV) Up to 78%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.50% (₹250 – ₹5,000)
8.45% – 8.80% p.a.
Loan Tenure Up to 12 months
Indicative Loan Amount ₹10,000 and above
WHY IT  MAKES THE LIST
Frequently cited by aggregators as having India's lowest starting gold loan rate.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 13
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Bank of Baroda
#7
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Nil up to ₹3 lakh
8.85% – 9.15% p.a.
Loan Tenure 12 – 36 months
Indicative Loan Amount Up to ₹50 lakh
WHY IT  MAKES THE LIST
Zero processing fee on smaller-ticket loans, backed by extensive branch reach.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 14
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Indian Overseas Bank
#8
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.15% of loan amount
7.00% – 11.45% p.a.
Loan Tenure As per scheme
Indicative Loan Amount Up to ₹25 lakh (OD variant)
WHY IT  MAKES THE LIST
The IOB Swarnalakshmi scheme gives women borrowers preferential pricing and free accident cover.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 15
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
UCO Bank
#9
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.25% of loan amount
8.85% p.a. onwards
Loan Tenure As per scheme
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
A simple, low-fee structure with same-day disbursal at most branches.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 16
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Punjab National Bank
#10
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.30% of loan amount
8.95% – 9.25% p.a.
Loan Tenure As per scheme
Indicative Loan Amount ₹25,000 – ₹25 lakh
WHY IT  MAKES THE LIST
Well regarded for financing against both gold jewellery and Sovereign Gold Bonds.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 17
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
City Union Bank
#11
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.50% of loan amount
9.00% p.a. onwards
Loan Tenure As per scheme
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
A strong South India presence with quick, same-day processing.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 18
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Karur Vysya Bank
#12
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.50% of loan amount
9.00% – 14.00% p.a.
Loan Tenure Up to 12 months
Indicative Loan Amount Up to ₹2 crore
WHY IT  MAKES THE LIST
High-ticket jewel loans alongside the Swarnamitra overdraft facility.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 19
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Kotak Mahindra Bank
#13
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee No / nominal fee
9.00% – 24.00% p.a.
Loan Tenure Up to 4 years
Indicative Loan Amount ₹20,000 – ₹1.5 crore
WHY IT  MAKES THE LIST
The longest available tenure among private banks on this list — up to 4 years.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 20
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
South Indian Bank
#14
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee No processing fee
9.00% p.a. onwards
Loan Tenure As per scheme
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
No processing fee plus same-day disbursal on standard gold loan schemes.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 21
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Tamilnad Mercantile Bank
#15
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.50% of loan amount
9.00% p.a. onwards
Loan Tenure As per scheme
Indicative Loan Amount From as low as ₹3,000
WHY IT  MAKES THE LIST
Best suited to small-ticket, short-term borrowers needing modest amounts fast.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 22
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
HDFC Bank
#16
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Up to 1% of disbursal amount
9.10% – 16.00% p.a.
Loan Tenure 3 – 24 months
Indicative Loan Amount ₹10,000 – ₹5 crore
WHY IT  MAKES THE LIST
A very high ticket-size ceiling backed by extensive digital and branch access.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 23
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Union Bank of India
#17
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee 0.50% of loan amount
8.85% – 10.00% p.a.
Loan Tenure As per scheme
Indicative Loan Amount Up to ₹20 lakh (priority sector)
WHY IT  MAKES THE LIST
Differentiated pricing for priority-sector versus non-priority-sector borrowers.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 24
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
ICICI Bank
#18
Private Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee Up to 2% of loan amount
9.15% – 10.00% p.a.
Loan Tenure 6 – 12 months
Indicative Loan Amount ₹10,000 – ₹10 lakh
WHY IT  MAKES THE LIST
A well-built digital application journey backed by a large branch and ATM network.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 25
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
State Bank of India (SBI)
#19
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee ₹200 – ₹300 + GST (bullet loans)
8.70% – 9.15% p.a.
Loan Tenure Up to 36 months
Indicative Loan Amount ₹20,000 – ₹50 lakh
WHY IT  MAKES THE LIST
India's largest lender, known for popular 3- and 6-month bullet repayment options.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 26
TO P  20  G O L D LO AN BA NKS   ·   RANK ED #2 –#20
Punjab & Sind Bank
#20
Public Sector Bank
Max Loan-to-Value (LTV) Up to 85%
STAR TI NG  I NT EREST  RAT E
Processing Fee As per bank's schedule
9.35% p.a. onwards
Loan Tenure As per scheme
Indicative Loan Amount As per gold value pledged
WHY IT  MAKES THE LIST
A smaller PSU lender offering competitive, same-day gold loan processing.
Featured Pick, Federal Bank:  8.15% – 8.99% p.a. onwards This Top 20 List's Rate Span:  7.00% – 9.35% p.a. onwards
Rate shown is the lowest publicly quoted "starting from" figure as of September 2026 and varies by loan amount, tenure, scheme and borrower profile. Confirm current terms with the bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 27
T H E  F U L L  P I C T U R E
All 20 Banks at a Glance
Rank Bank Sector Starting Rate Max LTV Tenure
#1 Federal Bank Private 8.15% p.a.* Up to 75% Up to 36 mo
#2 Bank of Maharashtra Public 8.50% p.a. Up to 85% Up to 36 mo
#3 Indian Bank Public 8.50% p.a. Up to 85% Up to 12 mo
#4 Bank of India Public 8.60% p.a. Up to 85% Up to 36 mo
#5 Canara Bank Public 8.75% p.a. Up to 85% 12–24 mo
#6 Central Bank of India Public 8.45% p.a. Up to 78% Up to 12 mo
#7 Bank of Baroda Public 8.85% p.a. Up to 85% 12–36 mo
#8 Indian Overseas Bank Public 7.00% p.a. Up to 85% As per scheme
#9 UCO Bank Public 8.85% p.a. Up to 85% As per scheme
#10 Punjab National Bank Public 8.95% p.a. Up to 85% As per scheme
#11 City Union Bank Private 9.00% p.a. Up to 85% As per scheme
#12 Karur Vysya Bank Private 9.00% p.a. Up to 85% Up to 12 mo
#13 Kotak Mahindra Bank Private 9.00% p.a. Up to 85% Up to 4 yrs
#14 South Indian Bank Private 9.00% p.a. Up to 85% As per scheme
#15 Tamilnad Mercantile Bank Private 9.00% p.a. Up to 85% As per scheme
#16 HDFC Bank Private 9.10% p.a. Up to 85% 3–24 mo
#17 Union Bank of India Public 8.85% p.a. Up to 85% As per scheme
#18 ICICI Bank Private 9.15% p.a. Up to 85% 6–12 mo
#19 State Bank of India Public 8.70% p.a. Up to 85% Up to 36 mo
#20 Punjab & Sind Bank Public 9.35% p.a. Up to 85% As per scheme
*Federal Bank's lowest scheme rate (Fed Smart Saver). Its General Gold Loan starts at 8.99% p.a. (floating). All rates are indicative "starting from" figures, as of September 2026 — always verify current terms with the 
bank.
Top 20 Best Banks for Gold Loans in India  ·  2026 28
M A K I N G  I T  P R A C T I C A L
How to Actually Land the Lowest Rate
Compare at Least 3–4 Lenders Prefer Bullet Repayment for Short Tenures
Headline rates vary by 50–150 basis points between banks — shop before you For loans under a year, bullet repayment can lower total interest outgo versus 
pledge. EMI.
Choose a Lower LTV Where You Can Use an Existing Banking Relationship
Borrowing a smaller percentage of your gold's value often unlocks a better rate Salary or savings account holders frequently receive preferential gold loan 
slab. pricing.
Read the Full Key Fact Statement Recheck Rates Periodically
Factor in processing fees, valuation charges and foreclosure terms, not just the Gold loan pricing is often linked to repo-rate-based benchmarks and can move 
rate. over time.
Bank vs NBFC:  Banks typically price around 8.5%–16% p.a. with 1–2 day disbursal; gold-loan NBFCs (Muthoot, Manappuram, IIFL) price higher, 
roughly 10%–27% p.a., in exchange for near-instant, doorstep disbursal.
Top 20 Best Banks for Gold Loans in India  ·  2026 29
K E Y  T A K E A W A Y S
Gold Loans, Ranked and Ready to Compare
Federal Bank is this guide's Featured Bank, with official rates from 8.15% p.a. (Fed Smart Saver) and 
8.99% p.a. (General Floating), up to ₹150 lakh. S O U R C E S
Public sector banks — led by Bank of Maharashtra, Indian Bank and Central Bank of India — hold federal.bank.in/gold-loans
most of the lowest headline rates on the market.
federal.bank.in/gold-loans-interest-rate
Several private banks (City Union, Karur Vysya, Kotak, South Indian, Tamilnad Mercantile) match 
closely around the 9.00% p.a. mark. Federal Bank Credit Pricing Disclosure, Q4 FY26 (21 May 
2026)
The lowest "rate" is only part of the cost — always weigh LTV, processing fees, tenure and 
foreclosure terms together. RBI 2026 gold-loan LTV & Key Fact Statement guidelines
RatesToday.in bank-wise gold loan tracker (10–11 Sep 2026)
ClearTax, MyMoneyMantra, BuddyLoan & other public rate 
aggregators
Disclaimer: This deck is for general information only and is not financial advice. 
Interest rates, fees and terms are indicative, change periodically and vary by 
borrower profile — confirm current details with each bank before applying.
Thank you.
Top 20 Best Banks for Gold Loans in India  ·  2026 30