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Gold loan demand in India surged 122 percent in 2025 to Rs 2.94 lakh crore, driven by high gold prices and RBI regulations.
Gold Loan
Gold Loan Interest Rate Comparison: The demand for gold loan in India has risen exponentially in 2025 to touch 122 per cent year-on-year to Rs 2.94 lakh crore, driven by high gold prices and relaxed regulations from the Reserve Bank of India (RBI).
Backed by physical gold, gold loans provide a quick and reliable way to get funds for emergencies, business needs, or personal goals without having to sell your gold permanently.
Gold has also followed a similar pattern this year. It has given a 44 per cent return. Tata Mutual Fund, in its report has mentioned factors triggering the gold prices: 1) central banks across globe buying gold in the last 10 years, have almost doubled in last 10 years, 2) US FED rate cut by 25 bps on September 17 sparked gold price rally, global uncertainty is fueling the “flight to safety”, strong investment demand, and rupee depreciation amplifying gold returns.
Thus, the demand for gold loan has risen.
However, borrowers need to pay an interest till the maturity period of gold holding. The interest depends on bank-to-bank, starting from 8.05 per cent.
Top 5 Banks with the Lowest Gold Loan Interest Rates in 2025:
| Rank | Bank Name | Interest Rate (p.a.) | Loan Tenure | Processing Fee | Loan Limit |
|---|---|---|---|---|---|
| 1 | Central Bank of India | 8.05% – 8.35% | Up to 12 months | 0.25% of the loan amount + GST | Rs. 10,000 – Rs. 40 Lakhs |
| 2 | Indian Overseas Bank | 8.20% – 11.60% | Up to 12 months | Varies by loan amount | Rs. 25,000 – Rs. 50 Lakhs |
| 3 | Punjab National Bank | 8.35% onwards | 12 months | 0.30% of the loan amount + GST | Rs. 25,000 – Rs. 25 Lakhs |
| 4 | Bank of India | 8.6% – 8.75% | Up to 12 months | Up to Rs. 1,500 | Rs. 20,000 – Rs. 30 Lakhs |
| 5 | State Bank of India | 8.75% onwards | Up to 36 months | 0.25% of the loan amount | Rs. 20,000 – Rs. 50 Lakhs |
(Source: ClearTax)
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 06, 2025, 06:30 IST
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