If you need a gold loan in India, you have three main options: a bank, a gold loan NBFC like Muthoot or Manappuram, or a local jeweller running a girvi business. The interest rates and terms vary significantly — and choosing the wrong one can cost you thousands of rupees.
Gold Loan Interest Rates — Quick Summary 2026
| Lender | Annual Rate | Monthly Rate | Processing Time |
|--------|-------------|--------------|-----------------|
| SBI Gold Loan | 9.60%–10.35% | 0.80%–0.86% | 1–3 days |
| HDFC Gold Loan | 11%–16% | 0.92%–1.33% | Same day |
| ICICI Gold Loan | 11%–16.50% | 0.92%–1.38% | Same day |
| Axis Bank | 15%–17% | 1.25%–1.42% | Same day |
| Muthoot Finance | 12%–26% | 1%–2.17% | 30 minutes |
| Manappuram Finance | 12%–29% | 1%–2.42% | 30 minutes |
| IIFL Gold Loan | 11.88%–27% | 0.99%–2.25% | 30 minutes |
| Local girvi/jeweller | 18%–36% | 1.5%–3% | 15 minutes |
*Rates are indicative. Always confirm current rates with the lender directly.*
Banks — Lowest Rates but Slowest Process
SBI offers the lowest gold loan rates at 9.60% per year but requires documentation and typically takes 1–3 working days. HDFC and ICICI offer same-day disbursement at 11%+ per year.
**Choose a bank when:** You have time, an existing bank relationship, good documentation, and want the lowest interest rate.
NBFCs — Fast Processing at Moderate Rates
Muthoot and Manappuram process loans in 30 minutes with minimal documentation. Rates from 12% to 29% per year. Strong presence across India including Tier 2 and Tier 3 cities.
**Choose an NBFC when:** You need funds quickly, want a trusted institutional lender, and do not qualify for the best bank rates.
Local Jewellers — Fastest and Most Accessible
Local jewellers charge 18%–36% per year but offer unmatched speed (15 minutes), no credit check, and flexibility. In thousands of towns, the local jeweller is the only practical option.
**Choose a local jeweller when:** You need cash within the hour, live in areas without NBFC branches, or need a small loan under ₹20,000.
Total Cost Comparison — ₹1,00,000 loan for 6 months
•SBI (9.60%/year): Total repayment = ₹1,04,800
•Muthoot (18%/year): Total repayment = ₹1,09,000
•Local jeweller (24%/year): Total repayment = ₹1,12,000
The difference between SBI and a local jeweller is ₹7,200 — often worth paying for the speed and accessibility when you need funds urgently.
For jewellers managing loans on the lending side, read our guide on [How to Calculate Gold Loan Interest in India](/blog/how-to-calculate-gold-loan-interest-india).
Conclusion
Gold loans and their rates suit different needs. Banks offer the lowest rates but require time. NBFCs balance speed and cost. Local jewellers are fastest and most accessible but charge more. Choose based on your urgency, location, and loan size.