5 Indian Banks Offering the Highest Gold Loan Value per Gram (2025)

Techy Lab January 21, 2024

0 1 4 minutes read

Gold loans have become a popular way for individuals in India to meet their financial needs quickly. Whether it’s for personal expenses, medical emergencies, or business requirements, a gold loan allows you to leverage the value of your gold to get quick access to funds.

However, the loan amount you can avail depends on the value of the gold you pledge. In this post, we will explore the top Indian banks offering the highest gold loan value per gram in 2025, helping you make an informed decision when it comes to borrowing against your gold.

🏆 What is a Gold Loan?

A gold loan is a secured loan where you pledge your gold ornaments or coins to a bank or financial institution, which in turn offers you a loan based on the value of the gold. The amount you can borrow typically ranges between 75% to 90% of the value of the gold. The interest rate is relatively lower than unsecured loans since it is backed by collateral.

🔍 Key Features of a Gold Loan

Quick Approval and Disbursal: Unlike personal loans, gold loans are processed quickly and funds are disbursed within a few hours.
Lower Interest Rates: The interest rate for gold loans usually ranges from 7% to 16% annually.
Flexible Repayment: Various repayment options are available, such as interest-only EMI, full EMI, or bullet repayment at the end of the loan term.
Loan Amount: Based on the purity and weight of your gold, banks offer loans up to 90% of the gold’s value.

💎 Top 5 Banks Offering the Highest Gold Loan Value per Gram (2025)

1. HDFC Bank Gold Loan

HDFC Bank is known for its competitive gold loan offerings and high loan-to-value (LTV) ratio. The bank offers an attractive gold loan scheme with a high value per gram for gold ornaments.

Gold Loan Value per Gram: ₹5,500 – ₹6,500 (depending on purity and weight)
Interest Rate: Starting from 9.50% p.a.
Loan-to-Value (LTV): Up to 75%
Processing Fee: ₹250 to ₹2,000
Tenure: 6 months to 24 months

Why Choose HDFC?
HDFC provides a quick loan disbursal process with minimal documentation and attractive interest rates.

2. ICICI Bank Gold Loan

ICICI Bank offers a range of gold loan products with a high gold loan value per gram, making it one of the top choices for borrowers in 2025.

Gold Loan Value per Gram: ₹5,200 – ₹6,000
Interest Rate: 10.50% p.a. onwards
Loan-to-Value (LTV): Up to 90%
Processing Fee: ₹500 to ₹3,000
Tenure: 6 months to 36 months

Why Choose ICICI?
ICICI’s gold loan is ideal for customers looking for high loan amounts and long repayment tenures, with a quick approval process and flexible options.

3. State Bank of India (SBI) Gold Loan

As one of India’s leading public-sector banks, SBI offers competitive gold loan values, making it an excellent choice for those who need quick funds against their gold.

Gold Loan Value per Gram: ₹5,000 – ₹6,200
Interest Rate: 7.50% p.a. to 9.60% p.a.
Loan-to-Value (LTV): Up to 90%
Processing Fee: Nil to ₹2,000 (depending on loan amount)
Tenure: 3 months to 36 months

Why Choose SBI?
SBI provides affordable interest rates, especially for customers with a good relationship with the bank. It is also a trusted name for secure and hassle-free loan processing.

4. Axis Bank Gold Loan

Axis Bank offers a strong gold loan product with competitive LTV ratios, allowing customers to avail high-value loans against their gold.

Gold Loan Value per Gram: ₹5,400 – ₹6,200
Interest Rate: 10.50% p.a.
Loan-to-Value (LTV): Up to 75%
Processing Fee: ₹500 to ₹3,000
Tenure: 6 months to 36 months

Why Choose Axis?
Axis Bank is known for its flexible loan repayment options and transparent charges. It also offers the advantage of quick disbursements and personalized services.

5. Punjab National Bank (PNB) Gold Loan

PNB offers competitive gold loan schemes that cater to both individuals and businesses. It offers high loan amounts, making it an attractive option for borrowers in need of larger sums.

Gold Loan Value per Gram: ₹5,300 – ₹6,100
Interest Rate: 8.50% p.a. onwards
Loan-to-Value (LTV): Up to 90%
Processing Fee: Nil to ₹2,000
Tenure: 3 months to 36 months

Why Choose PNB?
PNB offers flexible repayment options, including easy EMIs and bullet payments. It is a trusted public-sector bank that is known for its customer service.

💡 How to Maximize the Gold Loan Value?

To get the maximum value for your gold loan, here are a few tips:

1. Choose High-Purity Gold

The higher the purity (24K being the highest), the higher the loan value per gram. Ensure your gold is tested and certified for purity.

2. Opt for LTV Ratio Up to 90%

Most banks offer an LTV ratio between 75% and 90%. A higher LTV means you can borrow more against your gold.

3. Keep Your Gold Clean and Well-Presented

Banks evaluate the quality of the gold during the valuation process. Clean your gold ornaments to get a better appraisal value.

4. Compare Interest Rates

Though the loan amount is important, don’t forget to compare the interest rates across banks. A lower interest rate can save you more money in the long run.

📈 Gold Loan EMI Calculation

The EMI for gold loans is calculated based on the loan amount, interest rate, and tenure. For example, if you take a gold loan of ₹2,00,000 at an interest rate of 10.50% for 12 months, your EMI will be calculated as:

Loan Amount: ₹2,00,000
Interest Rate: 10.50% p.a.
Tenure: 12 months

EMI: ₹17,936
Total Interest: ₹15,232
Total Payable: ₹2,15,232

Use a gold loan EMI calculator to easily compute your EMI based on different loan amounts, interest rates, and tenures.

⚠️Things to Consider Before Taking a Gold Loan

Interest Rates: Always compare interest rates offered by different banks to ensure you are getting the best deal.
Repayment Terms: Choose flexible repayment options that suit your financial capacity.
Risk of Default: If you fail to repay the loan, the bank may auction your gold to recover the dues.
Gold Valuation: The loan amount depends on the weight and purity of the gold, so get your gold valued by a certified expert.

🔚 Conclusion

Gold loans are a great option for those who need quick financial assistance without selling their precious gold. The best gold loan banks in India in 2025 offer competitive interest rates, high loan amounts, and flexible repayment terms. By choosing the right bank and maximizing the value of your gold, you can get the most out of your gold loan.

Before applying, make sure to compare the gold loan value per gram, interest rates, and processing fees across different banks to find the most beneficial offer for your needs.