High gold prices and loosened RBI restrictions caused the gold loan market to soar 122% to Rs 2.94 lakh crore, with leading banks providing interest rates as low as 8.35% annually.
Due to rising gold prices and slack Reserve Bank of India (RBI) rules, the gold loan sector has expanded, with outstanding loans rising 122% year over year to Rs 2.94 lakh crore as of July 25, 2025. With genuine gold as collateral, gold loans provide a dependable way for people to get fast cash for unexpected expenses, company requirements, or personal objectives without having to liquidate their gold holdings forever.
With top banks and NBFCs currently providing interest rates as low as 8.35 percent annually, borrowers have a plethora of competitive gold loan choices to choose from. As of September 30, 2025, these are the top banks with the lowest interest rates on gold loans, according to statistics provided by Bankbazaar.com. The rules and qualifying requirements of the lender may affect the interest rates given.
Punjab National Bank
With interest rates as low as 8.35 percent, Punjab National Bank offers gold loans. An sum of Rs 8,715 per month is equivalent to a one-year, Rs 1 lakh gold loan.
Bank of India
With an interest rate beginning at 8.6 percent and a one-year term, Bank of India provides gold loans of up to Rs 1 lakh, with an EMI of Rs 8,727 a month.
Indian Bank
For a one-year loan of Rs 1 lakh with an EMI of Rs 8,734 a month, Indian Bank provides gold loans with interest rates as low as 8.75 percent.
Canara Bank
With a one-year term and an interest rate beginning at 8.90 percent, Canara Bank provides gold loans of up to Rs 1 lakh, with an EMI of Rs 8,741 a month.
Kotak Mahindra Bank
Gold loans of up to Rs 1 lakh with a one-year term and an interest rate of 9% are available from Kotak Mahindra Bank. This leads to an EMI of Rs 8,745 per month.
ICICI Bank
With an interest rate of 9.15 percent and a one-year term, ICICI Bank provides gold loans up to Rs 1 lakh. This leads to an EMI of Rs 8,752 per month.
HDFC Bank
For gold loans of Rs 1 lakh with a one-year term, HDFC Bank provides interest rates as low as 9.30 percent. This leads to an EMI of Rs 8,759 per month.
Bank of Baroda
With a one-year term and an interest rate beginning at 9.40 percent, Bank of Baroda provides gold loans of up to Rs 1 lakh, with an EMI of Rs 8,764 a month.
Union Bank of India
With an interest rate beginning at 9.65 percent and a one-year term, Union Bank of India provides gold loans of up to Rs 1 lakh, with an EMI of Rs 8,775 a month.
Axis Bank
With an interest rate of 9.75 percent and a one-year term, Axis Bank provides gold loans up to Rs 1 lakh. This leads to an EMI of Rs 8,780 per month.
State Bank of India
The biggest public sector bank in the nation, State Bank of India, provides a gold loan with an interest rate as low as 10% for loans totaling Rs 1 lakh with a one-year term. This corresponds to an EMI of Rs 8,792 per month.
IndusInd Bank
With an interest rate beginning at 10.50 percent and a one-year term, IndusInd Bank provides gold loans of up to Rs 1 lakh, with an EMI of Rs 8,815 per month.