Cheapest Gold Loan – Gold prices have surged to record levels in 2025, with a dramatic increase. This year, gold demand has increased by 122% to reach Rs 2.94 lakh crore. This is largely due to the surge in gold prices and the RBI’s revised regulations, which have made it easier for people to obtain gold loans.
Get instant money with gold loan
The special feature of a gold loan is that you don’t have to sell your gold, but instead get a loan in exchange for it. However, interest is payable over the life of the loan. Currently, banks offer interest rates starting at 8.05% on gold loans.
These are the top 5 banks offering the cheapest gold loans in 2025
1. Punjab National Bank is in third place, offering gold loans at an interest rate of 8.35%. The tenure is 12 months, and the processing fee is 0.30% of the loan amount + GST. Loan limits range from Rs 25,000 to Rs 25 lakh.
2. Bank of India is in fourth place, offering interest rates ranging from 8.6% to 8.75%. Loan terms are up to 12 months, and processing fees are as low as Rs 1,500. Loan limits range from Rs 20,000 to Rs 30 lakh.
3. At number three is State Bank of India, which offers gold loans at an interest rate of 8.75%. The tenure is up to 36 months, and the processing fee is 0.25% of the loan amount. Loan limits range from Rs 20,000 to Rs 50 lakh.
4. Central Bank of India is the number one lender, offering gold loans at interest rates ranging from 8.05% to 8.35%. Loan tenures are up to 12 months, and the processing fee is 0.25% of the loan amount + GST. Loan limits range from Rs 10,000 to Rs 40 lakh.
5. Indian Overseas Bank is second, offering interest rates ranging from 8.20% to 11.60%. Loan tenures are up to 12 months, and processing fees are determined by the loan amount. Loan limits range from Rs 25,000 to Rs 50 lakh.
Gold prices have also delivered impressive returns this year. According to reports, gold has delivered returns of up to 50%. The report states that central banks worldwide have nearly doubled their gold purchases over the past 10 years.
