<aside> <img src="/icons/forward_red.svg" alt="/icons/forward_red.svg" width="40px" /> Public sector banks are widely considered as the most preferred options for gold loans due to their stable and highly competitive interest rates, as well as their minimal processing fees. These banks have a long-standing reputation for providing reliable and efficient services to their customers. In addition to public sector banks, private sector banks also play a significant role in the gold loan market. Among the private sector banks, HDFC is widely recognized as a leading choice for borrowers seeking gold loans, thanks to its strong presence and extensive network across the country. Following HDFC, Axis Bank and ICICI Bank are also popular choices among borrowers due to their reliable services and competitive interest rates. It is important for borrowers to carefully consider their options and conduct thorough research before opting for a particular bank for their gold loan needs.
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Central Bank of India: Best in gold loans with low interest rates.
State Bank of India: Best in gold loans with bullet repayment options of 3 and 6 months.
Punjab and Sind Bank: Best in short-term gold loans with low-interest rates.
Punjab National Bank: Best in loan against sovereign gold bonds (SGBs) as well as gold jewellery and coins.
Bank of Baroda: Best in loan against gold with a minimum of 18-carat purity.
Canara Bank: Best in gold loan schemes for women borrowers.
Indian Overseas Bank: Best in gold loan for women borrowers with insurance add-on under PMSBY scheme.
Tamilnadu Mercantile Bank: Best in short-term gold loan amount as low as INR 3,000.
Axis Bank: Best in gold loan for borrowers who prefer fixed interest rates.
The Central Bank of India ranks top in Forbes Advisor India’s list of best gold loans in Jan. 2023, for its lowest lending rate against gold to Indian households at an interest rate of 8.45% for loans up to INR 3 lakh. It charges 8.55% RoI for loans up to INR 40 lakh. For businesses, the RoI ranges between 8.65% to 9.15% for loans up to INR 20 lakh.
The Cent gold loan is given to borrowers and businesses who pledge gold jewelry and coins issued by banks that are beyond 22 carat purity; however, loans given for personal use against 24 carat gold purity should not exceed 50 grams by weight.
Purpose: Personal and business use.
Loan type: Personal – demand loan; business – term loan, overdraft, and cash credit.