Selected disclosures rechecked: 27 October 2026. SBI, HDFC Bank, IIFL Finance, Muthoot Finance and Manappuram Finance are five gold-loan providers you can compare. The cheapest option for you depends on the scheme, loan amount, repayment pattern and fees. A headline starting rate is not enough to identify the lowest total cost.
This comparison uses lenders’ published disclosures. It does not rank branch service or promise approval. Some official pages show inconsistent figures; those gaps are identified below so that you can ask for a written quotation before pledging jewellery.
Five gold-loan companies and banks compared
| Provider | Published rate and important condition |
|---|---|
| SBI | Observed on 27 October 2026: 9.20% p.a. for six-month bullet repayment, 9.30% for 12-month bullet repayment, and 10.25% for EMI/overdraft. The page still labels its FAQ rates “as on 16.06.2026” while showing a 17 October 2026 page-update date. Confirm the applicable sanction rate; these are not guaranteed quotations. |
| HDFC Bank | The product page advertises a starting rate of 11.91% p.a. Its separate January-March 2026 disbursal range is historical data, not a current offer to every applicant. |
| IIFL Finance | The charges page lists 9.72%-27% p.a. in its table but mentions 11.88% in its introductory text. The page does not establish one unambiguous starting rate for your loan. |
| Muthoot Finance | Historical observation from 27 September 2026: a small-value scheme pop-up quoted 13.9% p.a., conditional on full monthly interest payment, with conflicting amount limits elsewhere on the page. Current terms could not be reverified in this refresh. Do not treat this as a current offer. |
| Manappuram Finance | The TMA1 example for ₹1 lakh-₹1,99,999 lists 15.50%-24% for 365 days. Lower effective rates depend on timely interest payments; other schemes and amounts have different terms. |
These are different products, not identical offers ranked from cheapest to most expensive. Obtain quotations for the same principal, repayment dates and intended closure date before comparing them.
SBI gold loan: match the repayment variant
SBI’s personal gold-loan page now shows matching processing-fee tables. For ₹50,000–₹2 lakh, it lists 0.25% of the loan amount, subject to a ₹250 minimum, plus GST. The schedule is marked valid through 31 March 2027; confirm the charge for your amount before signing.
A lower rate with a lump-sum repayment at maturity is not equivalent to an EMI arrangement. Ask for the payment schedule and the amount needed to release the pledged gold at your intended closure date.
Repayment terms matter as much as the rate
| Provider / variant | Verified practical condition |
|---|---|
| SBI personal gold loan | Bullet terms: six or 12 months. EMI and overdraft: up to 36 months. Published margins are 30%, 35%, 28% and 26% respectively. A margin is the portion of accepted collateral value not financed, not an interest charge. Appraisal charges are payable by the applicant. |
| HDFC Bank gold loan | Published valuation charges per packet per loan: ₹350 up to ₹2 lakh; ₹750 above ₹2 lakh through ₹10 lakh; ₹1,500 above ₹10 lakh, plus applicable tax. |
| IIFL Finance gold loan | Foreclosure charge is listed as nil, but closing within seven days still attracts at least seven days’ interest. Scheme-specific gold-maintenance charges may also apply. |
| Manappuram TMA1 example | ₹1 lakh–₹1,99,999; 90/180/270/365-day options. Published processing fee: ₹30 including tax. Monthly compounding and prompt-payment rebate conditions mean a headline rate is not the full repayment schedule. |
Terms above were observed on 27 October 2026 in the linked official lender disclosures. They are not a like-for-like price ranking. Ask each lender to quote the same amount and closure date, including the accepted collateral value, repayment calendar and total charges.
HDFC Bank gold loan: include valuation and closure charges
Compare the current product headline with the official charges schedule. The latter lists processing charges up to 1% of the disbursal amount plus applicable tax, as well as valuation fees. Its foreclosure schedule varies with how soon the loan is closed and includes exceptions.
If you expect to repay quickly, ask for the complete early-closure amount. A rate quoted per year does not tell you what a short borrowing period will cost after upfront and closure fees.
HDFC’s published closure schedule is 2% plus applicable tax within 30 days, 1% plus tax after 30 days through 180 days, and nil after 180 days. It separately exempts qualifying fixed-rate micro/small-enterprise gold loans up to ₹50 lakh repaid from own funds. Confirm whether your loan qualifies rather than applying the general charge or exemption automatically.
IIFL Finance gold loan: resolve the rate discrepancy
The conflicting figures on IIFL’s interest-and-charges page mean that neither headline should be presented as a rate every borrower can get. Its schedule also lists processing fees up to 2%, excluding GST, alongside other possible charges.
Ask the branch to identify the exact scheme, applicable rate, fees and any minimum interest period. Compare the written total with other lenders instead of choosing between inconsistent website headlines.
Muthoot Finance gold loan: check the scheme conditions
In our 27 September 2026 observation of Muthoot Finance’s official page, the small-value scheme card and its detail pop-up display different loan-amount ranges. The pop-up’s 13.9% rate is conditional on paying the full interest monthly. We have therefore not described it as a universal starting rate or applied it to a ₹1 lakh illustration.
Get the current scheme name, eligible amount, rebate conditions and all charges on your quotation. A rate dependent on timely monthly payment needs to be compared with the rate that applies if that condition is missed.
Manappuram gold loan: amount and payment timing matter
Manappuram’s scheme chart separates loan-size bands and tenures. It also states that effective rates reflect rebates for prompt monthly interest payment and that compounding is monthly. Its 9.90% headline is associated with particular schemes, including higher-value and takeover arrangements; it is not the rate listed for every small loan.
For the TMA1 example above, ask which point in the range applies to you and how your repayment timing affects the rebate. A published range is not a final sanction rate.
Gold-loan cost example: the lower rate can cost more
Suppose you borrow ₹1 lakh for six months. For this hypothetical comparison, the principal stays outstanding throughout, interest is simple, all fees shown include applicable taxes, and there are no additional charges:
- Offer A: 10% annual interest gives ₹5,000 interest. Add ₹1,500 in fees and the borrowing cost is ₹6,500.
- Offer B: 11% annual interest gives ₹5,500 interest. Add ₹500 in fees and the borrowing cost is ₹6,000.
Offer B costs ₹500 less in this example despite its higher interest rate. The ₹1 lakh principal must also be repaid. These are invented numbers to explain the calculation, not quotations from the lenders above or APR calculations. Actual EMI balances, compounding, rebates and closure terms can change the result.
You can check the simple-interest part with our simple interest calculator. Add fees separately; that tool does not model a lender’s EMI schedule, compounding or rebates.
What to ask before pledging your gold
Collateral-risk check: Ask what happens if the accepted value of your gold falls: when a top-up or part-repayment may be required, how you will be notified, the deadline to respond, and the auction notice and surplus-refund process. Keep a copy of the purity/net-weight assessment and item description. Do not assume the retail purchase price, making charges or stones will be financed, or that a regulatory maximum obliges a lender to offer that amount.
- Valuation: What purity and net gold weight were accepted, what value was assigned and how much will actually be disbursed?
- Scheme: What is the annual rate, and does it depend on payment timing or a rebate?
- Full cost: What are the processing, valuation, documentation, applicable tax and early-closure charges?
- Repayment: What is due monthly and at maturity? What changes if a payment is late?
- Gold release: What is the process for repayment, closure and return of the jewellery?
- Default: What notices, recovery charges and auction provisions apply?
Keep the valuation record, loan agreement and payment receipts. Gold used as security can be at risk if the loan is not repaid. Muthoot’s published auction policy is one example of why the recovery terms deserve as much attention as the rate.
Common questions about gold loans
Which gold-loan company is best in India?
There is no single winner for every amount and repayment plan. Compare the five providers above using written quotes for the same requirement. This article does not establish a market-wide lowest rate or a service-quality ranking.
Is a bank always cheaper than a gold-loan NBFC?
No blanket conclusion follows from the published headlines. A bank’s fees and repayment variant, or an NBFC’s scheme eligibility and rebate conditions, can change the total. Compare the actual offers rather than the lender category.
Does pledging gold guarantee approval without a credit check?
No. Do not treat collateral as a promise that a lender will skip eligibility checks or approve your application. Ask what identification, income information and credit assessment are required for your amount and scheme.
Is a gold loan always better than a personal loan?
No. Compare total borrowing cost, repayment obligations and the consequence of putting jewellery at risk. A gold loan’s advertised rate alone cannot establish that it is the better choice for your circumstances.
How much can I borrow per gram?
Ask for a current valuation and sanction calculation. The retail bill for your jewellery is not itself a loan quotation. The amount offered depends on the lender’s accepted gold valuation, scheme and applicable lending limits.
This guide is general information, not personalised financial advice. Published rates and fees can change. Confirm the lender’s current written terms before applying.
Last Updated on 3 days ago by Team Paisaseekho
