Find how much loan you can get on your gold — based on purity, weight, and your bank's LTV ratio.
RBI caps gold loan LTV at 75%. NBFCs like Muthoot & Manappuram offer faster disbursal than banks. Always check making charges exclusion — lenders value only pure gold content, not the entire ornament value.
| Lender | Interest Rate | Max LTV | Processing Fee | Max Tenure | Disbursal |
|---|---|---|---|---|---|
| SBI Gold Loan | 8.70% p.a. | 75% | 0.5% + GST | 36 months | 1–2 days |
| HDFC Bank | 9.00–17% p.a. | 75% | 1% + GST | 24 months | Same day |
| Muthoot Finance | 12–24% p.a. | 75% | Nil | 12 months | 30 minutes |
| Manappuram Gold | 12–26% p.a. | 75% | Nil | 12 months | 30 minutes |
| IIFL Gold Loan | 11–19% p.a. | 75% | Nil–0.25% | 24 months | 1 hour |
A gold loan is one of the fastest ways to raise funds in India — banks and NBFCs disburse within 30 minutes to 2 days. The loan amount depends on your gold's weight, purity, current gold price, and the lender's Loan-to-Value (LTV) ratio. RBI mandates a maximum LTV of 75% for all gold loans in India.
On 10g of 22K gold at ₹7,400/g: Gold value = 10 × (22/24) × 7,400 = ₹67,833. At 75% LTV, loan = ₹50,875. Actual amount may vary by lender's valuation methodology and daily gold rate.
Yes — if the gold loan is used for a business purpose, interest is deductible u/s 37. If used for home renovation, interest may be deductible u/s 24(b) up to ₹30,000. Not deductible for personal consumption.
Lender sends notices, then auctions your gold after a cooling period (usually 14–30 days notice). Any surplus from auction after recovering principal + interest + penalties is returned to you. Your credit score also takes a hit.
Gold loans from banks (8–12%) are significantly cheaper than personal loans (10–24%). However, gold loans are typically short-term (12–24 months). If you need longer tenure, personal loan may be more suitable despite higher interest.
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