Gold loans are rising fast. But not all banks will give you the same rate. Choose carefully before signing the form.

A woman in Madurai took a gold loan of ₹1.5 lakh last month. The interest rate? Just 8.75% per annum. No extra delay, no paperwork stress. Everything was done in less than 60 minutes.

That’s how fast gold loans are being processed in 2025. And that’s not the only shift.

Gold prices are holding steady. People are bringing jewellery more often to secure quick loans. With this demand rising, banks have begun cutting interest rates, quietly.

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Which Lenders Are Giving the Lowest Rates on Gold Loans? See the 2025 Data First

As per ICICI Bank’s Q2 FY26 (July to September 2025) report, gold loan interest starts from 8.75% and can go up to 16.75%. On the lower end, SBI is offering 7.50%, as per their own bulletin. Bank of Maharashtra also lists 8.75% as its minimum. HDFC Bank’s rate begins at 9.10%.

These are not ads. They’re from official reports and disclosures.

Here’s how gold loan interest rates from major banks look as of October 2025:

Bank	Starting Rate (Per Annum)	Max Rate
SBI	7.50%	~14.50%
ICICI Bank	8.75%	16.75%
Bank of Maharashtra	8.75%	~15.00%
HDFC Bank	9.10%	19.00%

These are currently among the best banks for low interest gold loans. Actual interest will still depend on gold quality, repayment mode, and tenure.

Why Are Banks Lending Gold Loans at Lower Risk?

Gold loans are backed by the asset itself. So if a borrower defaults, the bank already has the gold. No long recovery process.

A report from April 2025 showed gold loan GNPA for banks was just 0.22%. For NBFCs, it was 2.14%. That gap is big. Safer loans mean cheaper lending.

Here’s the GNPA comparison:

Lender Type	GNPA (%) – March 2025	Change Since 2024
Banks	0.22%	Dropped
NBFCs	2.14%	Slightly Higher

This is one major reason why banks are able to give more affordable gold loan options.

Were Rates Higher Just a Few Months Ago? Know What Changed in 2025

Back in February 2025, LoansJagat published an article titled “Cheapest Gold Loan from This Bank – Complete Guide”. Most floating rates were around 9.75% then. Now, many banks have moved below that range. Some only for select schemes. But it shows how fast the lending space is adjusting.

Will The Rules Change Again?

RBI shared a draft rule on 9 April 2025, covered by Reuters. It talked about tighter control. Lenders may need to track how the money is used. No double pledging either. That might slow things later.

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Back in 2020, during COVID, banks got extra freedom. LTV limits were raised. People could borrow more on the same gold. That flexibility is gone now.

If new rules pass, rates may not stay this low for long.

Conclusion

Anyone looking for the best banks for low interest gold loans should compare carefully. SBI, ICICI, and Bank of Maharashtra are offering good floor rates in 2025. But ask about processing fees, repayment style, and gold quality rules.

Affordable gold loan options from banks are everywhere now. But the lowest interest might come with some terms. Better to ask than assume. Always.

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