Overview of gold loans in India
A gold loan lets you borrow against jewellery you already own without selling it. The lender values your gold by purity and weight, keeps it in a vault, and returns it once you repay. Because the loan is secured, approval is usually faster than for an unsecured loan, and your credit history matters less, though lenders still assess your ability to repay.
This category covers five different products: a regular gold loan, a gold loan for business, a gold loan for agriculture, a gold loan overdraft and a gold loan balance transfer. They share the same collateral but differ in purpose, repayment structure and cost. On this site you can compare options from different lenders before you decide.
Types of gold loans
| Loan | Security | In brief |
|---|---|---|
| Gold Loan | Secured | A gold loan lets you borrow cash against gold jewellery that the lender keeps until you repay. |
| Gold Loan for Business | Secured | A gold loan for business is a gold-backed loan taken to fund working capital, stock, equipment or other business needs, rather than personal spending. |
| Gold Loan for Agriculture | Secured | A gold loan for agriculture is a gold-backed loan taken by farmers to pay for seed, fertiliser, labour, irrigation or other farm costs. |
| Gold Loan Overdraft | Secured | A gold loan overdraft gives you a revolving credit limit against pledged gold. |
| Gold Loan Balance Transfer | Secured | A gold loan balance transfer moves your existing gold loan to a new lender, usually to get a lower interest rate, better repayment terms or a larger limit. |
EMI calculators for gold loans
Each calculator is set up for how that loan is really repaid, with typical rates, a repayment schedule and the fees that change the true cost.
How to choose between gold loans
- Match the product to the purpose. Use a regular gold loan for one-time needs, an overdraft if you will draw and repay in parts, and a business or agriculture variant if the money is for a trade or farm. The purpose can change the tenure and documents asked for.
- Check the loan-to-value limit. RBI caps how much a lender can give against your gold, from 85% on small loans to 75% on larger ones. A lender offering the full cap is not always cheaper. Compare the interest rate and charges together, not the loan amount alone.
- Compare the full cost, not just the rate. Add up interest, processing fee, valuation or appraisal charges, insurance, and any penalty for early closure. Ask for the Key Fact Statement, which shows the annualised cost in one place so you can compare lenders fairly.
- Pick a repayment style you can sustain. Monthly interest, EMI and bullet repayment each suit a different cash flow. Bullet loans are limited to 12 months under RBI rules, so a long bullet tenure is not available. Choose the structure that matches how your income arrives.
- Look at how your gold is protected. Ask where the gold is stored, whether it is insured, how it is returned after repayment, and what happens if you miss payments. Read the auction terms and notice period before signing, as these are the biggest risks in any gold loan.
Estimate your EMI
Example values only. Replace them with the figures in your own offer.
Reducing-balance method. Excludes processing fees, GST, insurance and other charges.
Gold Loans: frequently asked questions
How much loan can I get on gold in India?
Under current RBI rules, a lender can lend up to 85% of the gold's value on loans up to ₹2.5 lakh, 80% on loans above ₹2.5 lakh and up to ₹5 lakh, and 75% above ₹5 lakh. The actual amount depends on purity, weight, the lender's valuation and its own policy.
Do I need a good CIBIL score for a gold loan?
A gold loan usually does not depend heavily on your credit score because the gold is the security. Some lenders still check your credit record and income, especially for larger or longer loans, so approval still depends on the lender's assessment of you.
Is it safe to keep gold with a lender?
It can be safe if the lender stores gold in a secured vault, insures it, and gives you a written receipt listing each item. Ask about the vault, insurance and return process before pledging. RBI also expects timely release of your gold after full repayment.
What happens if I cannot repay my gold loan?
The lender can send notices and, after the notice period, auction the gold to recover dues. Any surplus after recovering the loan and costs must be returned to you. Talk to the lender early, as extending or restructuring the loan may be possible.
Can I use a gold loan for any purpose?
Many gold loans can be used for personal needs, but some products are tied to a purpose such as business or agriculture, and these can carry different conditions. Lenders must not fund certain speculative uses. Check the stated end-use rules before applying.
Which is better, a gold loan or a personal loan?
A gold loan usually costs less and is faster than a personal loan, but you risk losing the pledged gold if you default. A personal loan needs no collateral but is typically costlier and depends more on your income and credit score. Compare the total cost of each.
Explore other loan categories
Official sources and further reading
These guides are written from Reserve Bank of India rules and official scheme pages. Rules, rates and scheme terms change, so check the current position on these sites and in your lender's Key Fact Statement before you apply.
- RBI: Key Facts Statement (KFS) for loans and advances. The Reserve Bank of India notification that tells lenders to give every borrower a plain-language statement of the full cost of a loan.
- RBI Complaint Management System. Where to take a complaint against a bank, NBFC or other regulated lender if the lender does not resolve it.
- RBI (Pre-payment Charges on Loans) Directions, 2025. Bars pre-payment charges on floating-rate loans taken by individuals for non-business purposes, for loans sanctioned or renewed from 1 January 2026.
- Reserve Bank - Integrated Ombudsman Scheme, 2021. The single complaint scheme for customers of banks, NBFCs and other RBI-regulated lenders.
- RBI: Free Annual Credit Report to Individuals. Credit bureaus must give you one free full credit report with score every calendar year.
- RBI Financial Education. Consumer guidance from the Reserve Bank of India on borrowing, fraud and your rights as a customer.
Edited by Hemant Kumar. Rates on this site are indicative ranges, not offers.
General information only. Rates and terms are indicative and vary by lender and applicant.