India gold loan: Your guide to borrowing against gold in India

When working with India gold loan, a short‑term loan where you pledge your gold jewellery or bars as collateral. Also known as gold loan India, it lets you unlock the value of gold without selling it, giving quick cash for emergencies, business needs, or big purchases. Because the loan is secured by a tangible asset, banks and NBFCs often offer lower interest than unsecured personal loans.

Key aspects to consider

Understanding the gold loan interest rate, the percentage charged on the borrowed amount, which varies by lender, loan‑to‑value (LTV) ratio, and borrower profile is the first step. Rates in 2025 hover between 7% and 12% for most major banks, but some small finance banks push up to 14% for higher LTVs. Keep an eye on processing fees and pre‑payment penalties, as they can add to the overall cost.

Next, look at gold loan eligibility, the criteria you must meet to qualify, such as purity of gold, minimum weight, and documentation. Typically, lenders accept 22‑carat gold and above, with a minimum weight of 10 grams for individuals. Salaried professionals often get better rates, while self‑employed borrowers may need to show additional proof of income. Your credit score still matters for the interest spread, even though the loan is secured.

From a repayment perspective, the loan can be structured as a lump‑sum repayment at the end of the tenure or as monthly EMIs. Choosing EMI provides predictable cash flow, but a lump‑sum payout can save on interest if you have a clear repayment source. Many borrowers refinance their gold loan into a personal loan when rates drop, so staying updated on market trends helps you cut costs.

Comparing a gold loan with a regular personal loan reveals why many Indians prefer the former. A personal loan is unsecured, so rates typically start at 12% and go higher, with stricter credit score requirements. In contrast, a gold loan leverages the metal’s value, so banks are more lenient on credit history, and the disbursal time can be as fast as a few hours.

Security procedures also differ. For a gold loan, the lender will verify purity using a gold tester, take a photograph, and issue a receipt. The gold stays in a safe vault until you repay and retrieve it. Some lenders even offer doorstep collection, making the process convenient for people in tier‑2 and tier‑3 cities.

What about tax implications? The interest paid on a gold loan is not tax‑deductible for individuals, but if you use the loan for a business purpose, you can claim it as a business expense. Also, avoid the temptation to sell gold during a market dip; borrowing lets you retain ownership while you wait for prices to recover.

Finally, keep an eye on emerging trends like digital gold loan platforms that use mobile apps for appraisal and disbursal. These fintechs promise lower paperwork and competitive rates, though you should verify their regulatory compliance before committing.

With these points in mind, you now have a solid framework to evaluate any India gold loan offer. Below you’ll find a curated list of articles that dive deeper into rates, eligibility, EMI calculations, and real‑world case studies, helping you make an informed decision and turn your gold into a financial ally.