5 Banks That Offer Cheapest Gold Loan Rates

Published : 24 May 2023

A gold loan is secured loan where borrower gives specified amount of gold in exchange for loan amount for set period. gold serves as collateral. Learn more about top 5 banks offering cheapest gold loan rates.

Interest Rate

8.45% to 8.55%  

Central Bank of India  

Processing Fees

 0.50% of loan amount  

The Central Bank of India offers one of lowest gold loan interest rates, making it attractive option for borrowers.

Interest Rate

8.00% to 24.00%  

Kotak Mahindra Bank  

Processing Fees

Up to 2% + GST  

Kotak Mahindra Bank provides competitive rates, starting as low as 8%, with flexible processing fees.

Interest Rate

8.50% to 17.30%  

HDFC Bank  

Processing Fees

1% of disbursal amount  

HDFC Bank combines reasonable interest rates with minimal processing fees, making it viable choice for gold loans.

Interest Rate

8.50%  

 UCO Bank 

Processing Fees

₹ 250 to 5000 max  

Bank of Maharashtra combines low interest rates with zero processing fees, making it cost-effective option for home loan seeker

Interest Rate

8.70%  

State Bank of India (SBI)  

Processing Fees

0.50% + GST  

SBI provides competitive interest rate & nominal processing fee, making it one of top choices for gold loans.

How to Calculate EMI for Gold Loans  

You can manually calculate EMI for your gold loan using formula:   \[ \text{EMI} = \frac{P \times R \times (1+R)^N}{(1+R)^N-1} \]   Where P is principal amount, R is rate of interest, & N is number of installments.

Additional Information on Gold Loans 

No CIBIL score is required for gold loans; only basic KYC documents are needed. Gold loans can also be availed against 24-carat gold coins issued by banks.

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