Gold Loan Interest Rate: Gold and silver prices saw a sharp increase during the year 2025. As a result of this increase, the prices of both precious metals reached record levels. Gold has surpassed Rs 1.20 lakh. As a result of this rising price, the demand for gold loans has increased by 122 percent in 2025.
The amount of gold loans has risen to Rs 2.94 lakh crore. The reason for the increased demand for gold loans is the high gold rate and the relaxed regulations of the Reserve Bank of India (RBI).
Key Takeaways
Quick Read- Gold has surpassed Rs 1.20 lakh.
- The amount of gold loans has risen to Rs 2.94 lakh crore.
Central Bank of India offers gold loan interest rates ranging from 8.05% to 8.35%. There is a processing fee of 0.25% on gold loans available for 12 months. Indian Overseas Bank is offering interest rates ranging from 8.20% to 11.60%. The bank offers loans up to Rs 50 lakh. Punjab National Bank’s interest rate starts at 8.35%. Here, 0.30% of the loan amount plus GST will be charged as processing fee.
Additionally, Bank of India’s interest rates range from 8.6% to 8.75%. The bank charges a processing fee of ₹1,500 for loans ranging from Rs 20,000 to Rs 30 lakh. The loan is offered for a 12-month term. The country’s largest lender, State Bank of India (SBI), is offering gold loans at 8.75% for a term of 36 months.