| Overview: This comprehensive gold loan company list covers India’s leading banks, NBFCs, and fintech lenders offering gold loans. Compare interest rates, loan amounts, processing fees, and unique features to choose the best gold loan provider for your financial needs in 2025. |
India’s Gold Loan Market
Gold loans have become India’s fastest-growing secured credit product, with the organised market touching ₹4 lakh crore in 2025. Indian households hold over 25,000 tonnes of gold, making it the world’s largest private gold reserve. When you need quick funds, this traditional asset transforms into modern liquidity through gold loans.
The Reserve Bank of India (RBI) allows lenders to offer up to a 75% loan-to-value (LTV) ratio on gold ornaments. This means if your gold is worth ₹2 lakhs, you can borrow up to ₹1.5 lakhs against it.
Leading Banks in the Gold Loan Company List
With interest rates ranging from 7.75% to 29% annually, choosing the right lender from the extensive gold loan company list becomes crucial for your financial well-being.
Public Sector Banks
Public sector banks in India offer secure and affordable gold loans backed by government trust.
| Bank | Interest Rate | Maximum Loan Amount | Processing Fee | Key Feature |
| State Bank of India | 9.00% onwards | ₹20 lakhs | 0.50% + GST | Bullet repayment options |
| Bank of Baroda | 7.75%-9.95% | ₹20 lakhs | ₹500 + GST | Lowest rates for 18-karat gold |
| Central Bank of India | 8.40%-9.50% | ₹20 lakhs | 0.50% | Competitive interest rates |
| Punjab National Bank | 9%-12% | ₹20 lakhs | As per policy | Accepts gold coins and bars |
Private Sector Banks
Private sector banks provide gold loans with faster processing and customer-friendly services, and through Airtel Finance, you can easily access and apply for these loans in a seamless digital way.
| Bank | Interest Rate | Maximum Loan Amount | Processing
Fee |
Unique
Offering |
| HDFC Bank | 9.30%-17.86% | ₹1 crore | 1% of loan amount | Digital application process |
| ICICI Bank | 9.25%-18.00% | ₹2 crores | 2% of loan amount | Minimal documentation |
| Axis Bank | 11%-17% | ₹25 lakhs | As per policy | Fixed interest rate option |
Calculation Example:
- Gold pledged: 50 grams of 22-karat gold
- Gold rate: ₹6,000 per gram
- Total gold value: 50 × 6,000 = ₹3,00,000
- Loan-to-Value (LTV): 75%
- Eligible loan amount: 75% of ₹3,00,000 = ₹2,25,000
- Interest rate: 9% (SBI, 12 months, bullet repayment)
- Total repayment: ₹2,25,000 + (₹2,25,000 × 9% × 1) = ₹2,45,250
Top NBFCs and Fintech Lenders
Non-banking financial companies (NBFCs) dominate the gold loan company list with their speed and flexibility:
- Muthoot Finance: India’s largest gold loan company with 12%-27% interest rates and an extensive branch network.
- Manappuram Finance: Offers 14%-29% rates with flexible tenure options up to 36 months.
- Bajaj Finserv: Provides doorstep service with rates starting at 12.99%.
- IIFL: Digital-first approach with 9.24%-24% interest rates.
- TATA Capital: Transparent pricing with rates from 10.99%.
| Did You Know? Airtel Finance Gold Loans let you borrow starting from just ₹5,000, making it convenient for both small and large financial needs without heavy paperwork. |
Understanding Gold Loan Mechanics
Gold loan mechanics revolve around pledging your gold ornaments or coins as collateral to access quick funds. The loan amount is calculated using the per gram value, which depends on the gold’s purity (karat) and weight.
Loan-to-Value (LTV) Calculation
The LTV ratio determines your loan amount using this formula:
Loan Amount = Gold Value × LTV Percentage
For example, if your 22-karat gold ornaments weigh 40 grams at ₹6,200 per gram:
- Gold Value = 40 × ₹6,200 = ₹2,48,000
- Maximum Loan (75% LTV) = ₹2,48,000 × 0.75 = ₹1,86,000
Interest Calculation Methods
Most lenders in the gold loan company list offer two repayment options:
EMI Method= [P × r × (1+r)^n] / [(1+r)^n – 1]
Where P = Principal, r = Monthly interest rate, n = Number of months
Bullet Payment: Pay only interest monthly, principal at maturity
| Pro Tip: Choose bullet payment for short-term business needs and EMI for longer tenures to manage cash flow better. |
Choosing Your Ideal Lender
When evaluating any gold loan company list, consider these factors:
- Interest Rates: Compare lenders to find the lowest rate for reduced repayment burden.
- Loan-to-Value: Higher LTV means more funds against your gold.
- Processing Speed: Opt for lenders offering instant approval and quick disbursal. Instant approval is backed up with a good CIBIL score.
- Transparency: Ensure clear terms with no hidden charges.
- Repayment Flexibility: Choose between EMI, bullet, or overdraft facilities.
- Security: Verify that gold is stored in RBI-approved, insured vaults.
- Customer Service: Responsive support ensures smoother management.
- Digital Access: Lender’s online platforms simplify gold loan applications by offering a quick, paperless, and fully digital process.
Making the Smart Choice
Your ideal lender depends on your specific needs. Banks work best for large amounts with longer repayment periods. NBFCs excel in speed and convenience. Fintech lenders suit emergency requirements despite higher costs.
Consider your gold purity, loan amount, repayment capacity, and urgency before selecting from any gold loan company list. Always compare the total cost, including processing fees and prepayment charges.
The gold loan market offers excellent opportunities to unlock your gold’s value. Whether you choose traditional banks or modern fintech solutions, ensure you understand all terms and maintain timely repayments to protect your credit score and valuable assets.
The Airtel Thanks App makes the process even simpler with instant application, loan amounts starting from ₹5,000, competitive interest rates, and full insurance for pledged gold stored in RBI-approved vaults.
FAQs
1. Which gold loan company list includes the lowest interest rates in 2025?
Bank of Baroda leads with 7.75% rates, followed by Central Bank of India at 8.40% for the most competitive gold loan options.
2. How do NBFCs in the gold loan company list compare with banks for processing speed?
NBFCs usually process gold loans within 2-6 hours, while banks require 3-7 days due to stricter documentation and approval processes.
3. What gold purity do lenders in the gold loan company list accept for maximum loan amounts?
Most lenders prefer 22-karat gold for full LTV benefits, though some accept 18-karat gold at reduced ratios.
4. Can I prepay my gold loan without penalties from any gold loan company list provider?
Many NBFCs allow free prepayment, while banks may charge 2-4% prepayment penalties depending on their specific loan terms.
5. How does my credit score affect gold loan approval from the gold loan company list?
Gold loans are secured, so approval depends mainly on gold value. However, higher credit scores may qualify for better rates.
