Gold Loan Vs Personal Loan - Interest Rate Comparison

As you know, Gold loan is becoming more popular among Indians, whether it is for personal consumption or business needs, any such urgent unforeseen expenses can be managed with Gold loans. The main attractions are the lowest interest rates, zero hidden costs, minimal documentation and no processing time.

Gold loan eligibility is evaluated based on the gold value. The banks are not worried about your credit history nor your financial position. Also the interest rate is calculated based on the percentage of market value of gold you are availing the loan. If you are going for say 90% of the market value, the interest will be on the higher side. The interest rate varies from 11 to 24 based on this figure. Still its cheaper than personal loan.

Just visit your nearest bank with your gold jewellery, after valuation of the jewel, the loan will be granted to you, normally within 1 hour.

Let us look at the interest rates the banks are charging on gold loan:

State Bank Of Travancore

Loans against Gold ornaments.
Amount of Loan - Maximum 10 lacs
Period of loan - 6/12 months and can be further renewed
Simple easy documentation.
Liquid gold - SBT Gold overdraft

Overdraft facility against pledge of Gold ornaments, operated as a running account with facility of cheque book.
Amount of Loan - Maximum 10 lacs
Loans are granted for 6/12 months and can be further renewed.

Federal Bank - Federal Gold Loan Scheme

Any personal or household purpose.

General Gold Loan - Maximum 12 months
Special Gold Loan – Maximum 6 months

Security - Gold ornaments / medallion of 22ct fineness

Rate per gram - 80% of market value of Gold subject to a maximum of Rs.2000/- per gram

Federal Pure Gold Card rates for 21st   March 2012*
Denomination 1g 2g 5g 8g 20g 50g 100g
Card Rates 3308 6210 15236 24172 59610 148469 296321

State Bank Of India - SBI

Loan against Gold Ornaments - SBI gold loan rate per gram:

Size of Credit Limit Rate of Interest
Upto Rs. 1,00,000/-
4.25% above Base Rate Floating, currently 14.25% p.a.
Above Rs. 1,00,000/-
4.75% above Base Rate Floating, currently 14.75% p.a.


Loan Processing Charges Upto 1% of Loan Amount
Valuation Fee Upto Rs 350
Charges for late payment of loan amount 2% p.a. as penal interest over and above applicable rate of interest.
Renewal Processing Fees Upto Rs 1000/-

Manappuram Finance

You may get up to 1 Crore cash from Manappuram Finance against Gold. There interest rate starts from 12% per year. Manappuram gives maximum Rs. 2,100 per gram of Gold and it takes generally 15-20 minutes for loan approval. No processing fee.


Scheme Name Value (per gram) Interest (% p.a.)

True Value Personal Loan (TPL) Rs. 1,035/- 12%
Super Value Personal Loan (SPL) Rs. 2,260/- 24%
Real Value Personal Loan (RPL) Rs 1,960/- 18%
Express Personal Loan (XPL) Rs. 2,090/- 21%

Muthoot Finance, India’s largest gold loan company is the first choice of Indians who want to make their dream a reality. May the dream be to start their own business or to buy their own home, for over 124 years Muthoot Finance has helped almost every Indian’s dream come true. Trusted by over 70000 customers everyday, Muthoot Finance Gold Loan has services and products that fit the need of any customer, making it the quickest, most convenient and safest way to take a gold loan.

Key features of Gold Loan:

Loan disbursal in 5 minutes
Loans starts from 1,500 to 1 Crore
Minimal documentation and credit assessment requirements
High quality customer service in short response time
Evaluation of gold ornaments takes place in house.
Safety of Gold Ornaments: All branches as equipped with Strong Rooms for keeping safe custody of Gold Ornaments
Gold Loan available at over 3,000 Muthoot Finance branches across India
0% processing fees
Pre-payment option-without any penalty

Canara Bank

Gold Loan/Swarna Loan Scheme w.e.f 04.10.2008 13.25%

Karnataka Bank Ltd


Rate of interest (%p.a.) 

GL-Quick (6 Months,2,100/gram of 24 ct gold)

Base Rate+4.00

GL-Classic (12 Months, 1,900/gram of 24 ct gold)

Base Rate+3.50

GL – Comfort (24 Months, 1,650/gram of 24 ct gold)

Base Rate+3.25

Agri GL Quick ( 6 months, 2,100/gram of 24 ct gold)

Base Rate+1.00

Agri GL Classic (12 Months, 2,000/gram of 24 ct gold)

Base Rate+0.75

Agri GL- Comfort (12 Months, 1,900/gram of 24 ct gold)

Base Rate+0.50

Agri GL – Comfort (24 Months, 1,750/gram of 24 ct gold)

Base Rate+0.25

Indian Bank

Jewel Loan to Traders under Priority Sector
Upto Rs.50,000/- BR+1+0.5 = 12.25 %
Above Rs.50,000/- upto Rs.2.00 lakhs BR+2+0.5= 13.35 %
Over Rs.2 lakhs - upto Rs.5.00 lakhs BR+3.0+0.5 = 14.75 %
Above Rs.5.00 lakhs upto Rs.20.00 lakhs BR+4+0.5 = 15.25 %
Non Priority Jewel loans including secured OD against Gold Ornaments
Short term loans / secured OD : Irrespective of limit BR+3.5+0.5 = 14.75 %
Jewel loans to staff members (Non Priority)
Irrespective of limit BR+3.75+0.5 = 15.00 %
Jewel loan to Senior Citizens
For EMI BR+1.5+0.5 = 12.75 %
For Bullet Payment upto 12 months BR+1.5+0.5 = 12.75 %
For Bullet Payment After 12 months BR+1.75+0.5 = 13.00 %

KSFE - Kerala State Financial Enterprises

You can avail up to Rs.25 lakhs from KSFE where the interest is charged for the actual number of days for which the gold is pledged.

Current interest rate is 12% per annum to a loan upto and including Rs 10,000. Interest rate for loans above Rs 10,000 is 14% per annum.

Corporation Bank

Corp Abharan - Jewel Loan scheme

Security: Pledge of Gold Jewellery.
Rate: Per gram Rs.2000/- on 24 carrat basis for loans with repayment period of 12 months, Rs.1900/- per gram [24 carrat basis] for loans above 12 months repayment period.
No processing charges for loans up to Rs.2.00 lakh.

Rate of Interest: Linked to Base Rate which is 10.65% at present

Agriculture Jewel Loan (ACADL / ACAOD)
Loans up to 12 months : 10.75%
Loans above 12 months and up to 24 months: 11.25%

For Agriculturists, loans sanctioned to short-term crop production up to Rs. 3 lakhs during the current year and repayable with in 12 months, the rate of interest is: 7 %

For Jewel Loans other than agriculture (CADL /CAOD) :
Up to Rs.2 lakhs : 11.75%
Above Rs.2 lakhs : 12.75%

Repayment: Demand Loan/Maximum 24 months.

Allahabad Bank

Loan for Agricultural purpose

Rate prescribed by the bank for agriculture loan. At present as under -
1 Up to Rs.50000.00 – Base Rate+0.75%
2 Above Rs.50000.00 & up to Rs.2.00 Lac – Base Rate+2.00%
3 Above Rs.2.00 Lacs & up to Rs.5.00 Lac – Base Rate+3.50%

Loan for other purposes: Base Rate+4.00%

Catholic Syrian Bank

Gold Loan - General Category
Finance upto Rs.1700.00 per gram
For HALLMARKED GOLD - Special Rate - Rs 1800/ per gram Interest rate - 13.50% p.a.
Period - 1 year

Gold Loan under Agriculture - Interest rate - 11.50% p.a. Finance upto Rs 1800 per gram

A unique Overdraft facility against pledge of Gold Ornaments at an interest rate of 14% p.a. Finance upto Rs 1800 per gram.

Gold Loan - CSB...Ezee Gold Cash
Finance upto Rs 1800 per gram
For HALLMARKED GOLD - Special Rate - Rs 1900 per gram
Interest rate - 12.50% p.a.
Period - 6 months.

Gold Loan - CSB...Swarna Nidhi
Finance upto Rs 1800.00 per gram
For HALLMARKED GOLD - Special Rate - Rs 1900.00 per gram
Interest rate - 12.50% p.a.
Period - 1 year.

Gold Loan - CSB...Gold Power
Finance upto 90% of the market value or the rate fixed by Bank from time to time, presently Rs 2100.00 per gram *
Interest rate - 12.50% p.a.
Period - 1 month.

Punjab National Bank

  BPLR System Base Rate System
a) Productive purposes for Agriculture    
i. Upto Rs.50,000/- BPLR - 0.75% BR+2.25%
ii. Over Rs.50,000/- & upto Rs.2.00 lac BPLR BR+3.00%
b) Productive Purposes (other than agriculture)    
i. Upto Rs.2 lacs BPLR BR+3.00%
ii. Over Rs.2 lacs BPLR BR+3.00%
c) Non-productive purposes Public (Ceiling Rs.2 lacs) BPLR + 1% BR+4.00%
d) Staff (Non-productive purposes) BPLR BR+3.00%

Disclaimer: The information provided here are collected from various sources, visit the respective bank for the latest interest rates and terms and conditions.


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  1. This is a nice comparison.

    What is the current situation. Which is the top three best options for a gold loan in terms of interest rates?

  2. Loan against gold is the best way to finance your urgent needs. Through this deal a person can acquire quick cash and overcome the financial crunch. A person who possess gold and needs large cash can avail Loan Against Gold .

  3. Gold Loan is the best deal to draw cash in urgent needs. One can avail gold loan online to save time and effort. One has to compare interest rates of various banks and then select the suitable offer. Manappuram Gold Loan plans are much flexible as it provides finance at cheapest interest rate.

  4. You get higher returns of interest in gold loan. As in gold collateral loans you get your gold deposited and in return you get higher pay.

  5. Wow!!! Nice topic. I have liked your topic about the gold loan and personal loan. I am sure that it will be a good solution to them who are confused abut the gold and personal loan.


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