Gold loan interest rates: banks and NBFCs
Rates, loan for each gram and charges of SBI, Canara Bank, Muthoot Finance, Manappuram Finance and IIFL Finance, from the site of each lender. Verification date: 27 Oct 2026.
Gold loan rates compared
| Lender | Lowest rate | Highest / base | Processing fee | Prepay / close early |
|---|---|---|---|---|
| State Bank of India | 9.2% | 10.25% | 0.25% up to ₹2 lakh (min ₹250); 0.15% above ₹2 lakh (min ₹500); above ₹25 lakh 0.15% (₹3,750 to ₹7,500); till 31 Mar 2027 | Not given on SBI's gold loan page. Ask the branch. |
| Canara Bank | 9.35% | 9.35% | Swarna Loan, Overdraft and Monthly Interest: 0.30% (₹250 to ₹3,000). Swarna Express: 0.15% (₹125 to ₹1,500). Till 31 Mar 2027 | No prepayment penalty. You can close the loan at any time. |
| Muthoot Finance | 9% | 26% | Not on the scheme sheet | Muthoot Finance's scheme sheet does not give a prepayment charge. |
| Manappuram Finance | 9.9% | 24% | ₹30 including tax (scheme page); the rate page says ₹25 plus tax | Manappuram's scheme page does not give a prepayment charge. Penal charges are 2% a year after the loan tenure. |
| IIFL Finance | 9.72% | 27% | Up to 2% of the loan | Part-payment: nil. Foreclosure: nil (minimum 7 days' interest if closed within 7 days). |
Banks give one rate for each scheme. NBFCs (Muthoot Finance, Manappuram, IIFL) give a low rate if you pay the interest each month. If you do not, they apply a base rate of 24% or more.
Gold loan calculators by lender
Gold loan for each gram
At ₹12,970 a gram for 22 karat (the Canara Bank value for each gram of 22 karat gold for LTV, 26 Oct 2026).
| Purity | Value a gram | 85% (≤ ₹2.5 lakh) | 80% (≤ ₹5 lakh) | 75% (above) |
|---|---|---|---|---|
| 24 karat | ₹14,149 | ₹12,027 | ₹11,319 | ₹10,612 |
| 22 karat | ₹12,970 | ₹11,024 | ₹10,376 | ₹9,728 |
| 18 karat | ₹10,612 | ₹9,020 | ₹8,489 | ₹7,959 |
The RBI limit
RBI sets the highest loan for a consumption gold loan. It is 85% of the gold value for a total loan of ₹2.5 lakh or less. It is 80% up to ₹5 lakh and 75% above ₹5 lakh (RBI (Commercial Banks – Credit Facilities) Directions, 2025, para 44). In a bullet loan, you repay all at the end. For this loan, the limit applies to the total that you repay, with interest, not only to the loan. A lender can give less than the RBI limit. The limits do not apply to a gold loan for a business.
Frequently asked questions
Which gold loan has the lowest interest rate?
Banks usually charge less. On 27 Oct 2026, the SBI 6-month bullet gold loan was at 9.20% and the Canara Bank Swarna Loan was at 9.35%. NBFCs start lower on some large schemes, or on schemes where you pay the interest each month. Muthoot Finance gives 9% on ₹50 lakh and more. Manappuram gives 9.90% on ₹25 lakh and more. But their base rate is 24%.
Why do NBFC gold loans show two rates?
Muthoot Finance and Manappuram show a low rate and a base rate of 24%. The low rate applies only if you pay the interest on time. If you do not, the base rate applies. Also, the lender adds the interest to the loan each month (compound interest): 24% becomes 26.82% a year.
How much loan can I get on 10 grams of gold?
At ₹12,970 a gram for 22 karat, 10 grams of gold has a value of ₹1,29,700. The RBI limit for a loan up to ₹2.5 lakh is 85%: ₹1,10,245. For a bullet loan, the limit includes the interest. Thus, the loan is less by a small sum. Banks such as SBI give 65% to 74%.
Sources
- SBI Personal Gold Loan (rates, margin, fees)
- Canara Bank Swarna Loan (rate RLLR + 1.10% w.e.f. 02.10.2026, fees)
- Muthoot Finance: Interest rate structure of gold loan schemes (PDF, from Jul 2026)
- Manappuram Finance: gold loan operational schemes and rates (2026)
- IIFL Finance: gold loan interest rates and charges (Aug 2026)
- RBI (Commercial Banks – Credit Facilities) Directions, 2025, para 44