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Money Matrix Hub · Pillar guide · Reviewed 2026-04-25

Gold Loans India 2026: Per-Gram Rate, LTV, Top Lenders

Gold loans are India's fastest-disbursing secured loan: ornaments → cash in 30-60 minutes. RBI caps LTV at 75%; SBI's prime tier starts at 8.75%, while NBFCs (Muthoot, Mannapuram) price at 12-18% but go higher LTV. This pillar covers per-gram rate computation, scheme tenure, and the renewal gotcha.

Quick eligibility check

Match your salary, age, CIBIL score, and existing-EMI ratio to each lender's 2026 cut-offs in 60 seconds.

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Top 5 lender rates this week

LenderMin %Max %Max amount (₹ Cr)Tenure (yrs)
State Bank of India8.7510.100.53
HDFC Bank9.2017.900.52
ICICI Bank9.2518.0011
Federal Bank9.4913.000.52

Reviewed 2026-04-25. Always confirm with the lender before you apply.

How to apply: step-by-step

  1. Compare lender rates side-by-side. Use the rate board to shortlist 3-4 lenders matching your profile and tenure preference.
  2. Run an eligibility check. Match income, CIBIL, vintage, and existing-EMI ratios against each lender's published cut-offs.
  3. Collect KYC + income documents. PAN, Aadhaar, salary slips (3 months) or ITR (2 years for self-employed), bank statements (6 months).
  4. Submit application + soft-pull. Most digital lenders use soft credit pull at the offer stage so your CIBIL is unaffected.
  5. Sanction letter + acceptance. Read the sanction letter carefully — focus on processing fee, foreclosure terms, and reset clauses.
  6. Disbursal. Funds typically credited within 24-72 hours of acceptance for unsecured products.

FAQ

What is the maximum LTV for gold loans?

75% as per RBI Master Direction (DBR.RRB.BC.No. 47 / 2014, periodically updated). Banks adhere strictly; NBFCs occasionally test the boundary.

What is the per-gram rate today?

Varies daily with gold spot. As of April 2026, ₹7,200-7,500 per gram of 22-karat at most banks (75% of spot).

What gold purity is accepted?

18-22 karat ornaments. Bullion / coins (other than bank-issued) usually not accepted.

What is the typical tenure?

3 months to 36 months. Bullet repayment or EMI options available.

Are there foreclosure charges?

Most lenders allow zero-cost prepayment; some NBFCs charge 1% if foreclosed within 90 days.

What happens if gold prices fall?

Lender may issue a margin call asking you to top up or part-prepay. If unmet, auction risk after 90 days.

Can I renew a gold loan?

Yes — most lenders allow rollover with fresh KYC + revaluation; interest must be cleared before renewal.

Are gold loan interest rates negotiable?

Yes at branches with relationship — 25-50 bps off the headline; NBFCs less negotiable.

Is income proof required?

Generally no — gold itself is the security. KYC + ownership proof of gold is enough.

What is the auction process if I default?

Lender issues 14-day notice, then 7-day public auction notice; pledged gold is auctioned after the cure period. Surplus (if any) is returned.

Related cluster topics

RBI guidelines for this product

This product is governed by RBI Master Directions and KFS / FPC requirements. Read the latest applicable circulars and ensure your lender complies before sanction.

View RBI circulars for this category →

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