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Imagine you need quick cash tomorrow—for medical bills, education, or even a business need—but you don’t want to swipe a high-interest credit card. In India, the answer many people turn to is a gold loan. It’s simple: pledge your jewelry and get money almost instantly. In fact, according to the Reserve Bank of India (RBI), gold loan demand in India has grown steadily, with NBFCs disbursing over ₹1.5 lakh crore in FY 2024 (RBI Report)
This best gold loan guide 2025 will walk you through everything: eligibility, how per gram value is decided, interest rates across banks & NBFCs, repayment tips, and risks you must know. By the end, you’ll know exactly how to decide if this is the right option for you—and how to calculate your own EMI using our gold loan calculator.
What is a Gold Loan & Why is it Popular in 2025?
A gold loan is a secured loan where you pledge gold jewelry, ornaments, or coins to get money from a bank or NBFC. The lender keeps your gold safely and gives it back once you repay.
The reason it’s trending in 2025:
- Faster processing (same-day disbursal in many cases).
- Lower interest than personal loans (starting ~8.5% vs 12–20%).
- No credit score dependency (gold is collateral, so CIBIL isn’t a big factor).
Think of it like pawning your gold—but with a regulated bank/NBFC, where terms are transparent and RBI-backed.
Minimum CIBIL Score for Gold Loan
No, there is no fixed minimum CIBIL score required for a gold loan. Since the loan is secured against your gold, banks and NBFCs usually approve it even if you have a low or zero credit score. However, having a CIBIL score of 600 or above can improve your chances of getting a higher loan amount, quicker approval, and better interest rates. In short, your credit score is not the main eligibility factor for a gold loan, but a good score can still give you extra benefits.
Who is Eligible for a Gold Loan in 2025?
Eligibility is simple compared to most loans. Here’s what matters:
- minimum age for gold loan: 18–70 years (some banks cap at 65).
- Residency: Indian residents only.
- Gold Ownership: The jewelry/coins must be in your name (not borrowed from a friend).
- Documents Required:
- Aadhaar/PAN for ID proof.
- Utility bill/Passport for address proof.
- Photograph.
Unlike home or personal loans, you don’t need income proof unless the loan size is unusually high.
Pro Tip:
If you have multiple family members, gold loans can be taken against each person’s jewelry separately, provided the ownership proof is clear.
What is Gold Loan Eligibility Per Gram in India?
Gold loan eligibility per gram depends on several factors like the purity of gold, the lender’s policy, and your credit profile. Generally, banks and NBFCs offer up to 75%-90% of the market value of gold per gram. For example, if the current market price is ₹5,000 per gram, you may be eligible for a loan of ₹3,750 to ₹4,500 per gram.
Maximum Gold Loan Amount Per Gram
Most lenders cap the maximum loan amount based on the purity and type of gold. Typically, the maximum permissible loan amount per gram can be up to ₹4,500 depending on market conditions and the lender. The exact figure varies, so it’s wise to check with multiple providers.
What Is the Gold Loan Maximum Amount?
The maximum loan amount is usually calculated based on the total weight of your gold and its purity. For example, if you have 100 grams of 22-carat gold and the lender offers 80% of the market value, and the price is ₹5,000 per gram, you may get up to ₹4,00,000.
Understanding Gold Loan Value Per Gram
The gold loan value per gram is the market price of gold multiplied by the eligibility percentage. Lenders assess the purity (e.g., 22K, 24K) and then offer loans accordingly. Monitoring market rates is key to getting the best deal.
What is Gold Loan to Value (LTV) Ratio?
The Loan to Value (LTV) ratio defines how much you can borrow against the value of your gold. In India, the typical LTV for gold loans ranges between 75%-90%. A higher LTV indicates better loan terms for borrowers. NBFCs may offer higher LTVs compared to banks.
Gold Jewel Loan Per Gram
When you pledge gold jewelry, the per gram loan eligibility depends on purity and condition. Usually, lenders discount by an additional margin to account for melting and valuation costs, typically around ₹3,500-₹4,200 per gram.
How Much Loan Can I Get on Gold?
The loan amount depends on the total grams and purity of gold.
Example:
- 50 grams of 22K gold
- Current market price ₹5,000 per gram
- LTV 80%
→ Loan eligibility: 50 × ₹5,000 × 80% = ₹2,00,000
How Do Banks Decide Per Gram Value in 2025?
One of the most common user questions is: “How much loan will I get for my gold?”
Banks don’t just look at today’s market price. RBI has made strict rules in its 2025 Lending Against Gold Directions:
- Purity & Net Weight: Stones and making charges are ignored—only gold content counts.
- Reference Price: Lenders must use the lower of:
- The last 30-day average gold price.
- Previous day’s closing price.
(Sources: IBJA daily gold rates, SEBI-recognized exchanges).
- Loan-to-Value Ratio (LTV): RBI allows:
- 85% LTV for loans ≤ ₹2.5 lakh.
- 80% LTV for ₹2.5–5 lakh.
- 75% LTV for loans > ₹5 lakh.
Example Table: Gold Loan Value per Gram (22K, Jan 2025)
| Gold Price (per gram) | Max LTV % | Loan Value per gram |
|---|---|---|
| ₹5,800 (22K avg) | 85% | ~₹4,930 |
| ₹5,800 (22K avg) | 80% | ~₹4,640 |
| ₹5,800 (22K avg) | 75% | ~₹4,350 |
👉 Use our gold loan calculator to check how much you qualify for instantly.
What are the Interest Rates for Gold Loans in 2025?
Gold loan rates vary by bank, NBFC, and scheme type.
- SBI Gold Loan: Starting from ~8.75% p.a. (latest slab as of Aug 2025).
- HDFC Bank: 9.30%–17.88% APR range.
- Manappuram Finance: ~9% onwards.
- Muthoot Finance: 10%–18% depending on plan.
💡 Note: The repo rate (policy rate) as of Aug 2025 is 5.50% (RBI Monetary Policy), which influences loan pricing.
Gold Loan Interest Rate Per Gram
Interest rates typically range from 12% to 24% per annum, depending on the lender. Some NBFCs offer lower rates for larger loans or for repeat customers. Banks often have more stringent eligibility but offer lower rates.
Gold Value for Gold Loan
The gold’s market value is based on real-time rates per gram, which fluctuate daily. Always check the latest gold prices from trusted sources or market indexes before applying.
Best Gold Loan Lenders in India (2025)
- Muthoot Finance
- Manappuram Finance
- State Bank of India (SBI)
- HDFC Bank
- Bajaj Finserv
How to Calculate Your EMI Before Borrowing?
One mistake borrowers make is ignoring EMIs until repayment starts. Don’t do that!
Here’s how to plan:
- Enter loan amount (say ₹2,00,000).
- Choose tenure (12 months).
- Enter rate of interest (say 10%).
👉 On ₹2,00,000 at 10% for 12 months, EMI = ~₹17,580.
Instead of doing math, just use our gold loan calculator. It gives you EMI, total interest, and total payment in seconds.
What Risks Should You Be Aware Of?
While gold loans are convenient, they aren’t risk-free:
- Price Fluctuations: If gold prices fall, lender may ask for top-up or partial repayment.
- Auction Risk: If you default, lender auctions your gold after giving notice.
- High Rates for Short Loans: Bullet repayment schemes may look cheap but have higher effective rates.
Always read your loan agreement carefully. RBI has mandated lenders to disclose all charges upfront (RBI Guidelines 2025).
Smart Tips Before Taking a Gold Loan in 2025
- Match Tenure to Income Flow: Salaried? Opt for EMI. Irregular income? Bullet might suit better.
- Compare Rates Across Banks & NBFCs: Don’t settle for the first lender.
- Check Loan-to-Value (LTV): Higher LTV = higher risk if prices dip.
- Negotiate Processing Fees: Many lenders waive or reduce them for good customers.
Key Takeaways
- Gold loans = quick, easy, collateral-backed credit.
- RBI 2025 rules make valuation & LTV transparent.
- Rates start from 8.5–9% at top banks.
- Use a gold loan calculator before signing to avoid repayment shocks.
- Understand auction risk and always borrow only what you can repay.
How Much Gold Loan Can I Get for 10 Grams of Gold?
If 22K gold = ₹5,800 per gram, at 85% LTV, you can get ~₹49,300.
Is Cibil Score Required for a Gold Loan?
Not really. Since gold itself is collateral, even people with poor credit scores can get approval.
Can Banks Auction My Gold Without Notice?
No. RBI mandates lenders to give proper notice before auction, and any surplus after dues must be refunded to you.
Is My Gold Safe with the Lender?
Yes, reputed banks/NBFCs keep it insured in vaults. Check terms in writing.
What Happens If I Don’t Repay?
After notice period, lender can auction pledged gold.
Minimum CIBIL Score for Gold Loan
No, a CIBIL score is not mandatory for a gold loan. Lenders mainly consider the purity and value of your gold as security. Still, a score above 600 can help you get faster approval, higher loan value, and lower interest rates.
