Why a Gold Loan Per Gram Rate Comparison Matters in 2026
If you own gold jewellery or coins, a Gold Loan can be one of the fastest ways to raise funds — often disbursed the same day you walk into a branch. But the amount you actually receive per gram depends on three moving parts: the lender's interest rate, the gold purity you pledge, and the loan-to-value (LTV) ratio the lender is allowed to offer.
In 2026, gold loan interest rates across India range from 8.05% to 27% p.a., so choosing the wrong lender could cost you significantly over a 12-month tenure. This comparison page breaks down per-gram loan values, lender-by-lender rates, RBI's revised LTV rules, and the hidden charges you should watch for — so you can walk in prepared.
How the Per Gram Loan Value Is Calculated
Lenders don't simply lend you the full market price of your gold. They apply an LTV ratio — a cap set by the Reserve Bank of India — to the gold's assessed market value. The higher the purity, the higher the market price per gram, and therefore the higher the loan you can unlock.
Gold purity accepted by most lenders runs from 18K to 24K, with 22K used as the standard benchmark for jewellery. Based on early 2025 reference prices from IndiaGold, the per-gram market values and approximate loan values at a 75% LTV work out as follows:
| Gold Purity | Approx. Market Price / Gram | Approx. Loan Value / Gram (75% LTV) |
|---|---|---|
| 24K | ₹6,700 | ₹5,000 |
| 22K | ₹6,200 | ₹4,600 |
| 18K | ₹5,100 | ₹3,800 |
Source: IndiaGold (January 23, 2025), accessed September 20, 2026. Prices are indicative reference values; actual per-gram rates on the date of pledging will vary with live market prices. Check with your lender for the current assessed value.
Note that the LTV cap applied to your loan may be higher or lower than 75% depending on the loan amount — see the RBI LTV rules section below. The valuation is typically done using an XRF (X-Ray Fluorescence) machine at the branch, and a testing fee of ₹250 to ₹500 may be charged.
Gold Loan Per Gram Rate Comparison: Top Lenders in 2026
Rates below are indicative and lender-specific — always confirm the current rate directly with the lender or use our loan finder to compare live offers.
| Lender | Interest Rate (p.a.) | Loan Amount Range | Processing Fee | Tenure |
|---|---|---|---|---|
| State Bank of India | From 8.75% | ₹20,000 – ₹50 lakhs | 0.50% of loan amount (min. ₹500 + GST) | Up to 36 months |
| HDFC Bank | 9.00% – 19.00% (avg. 10.86%) | Varies by branch | Varies | Up to 36 months |
| Axis Bank | 9.75% – 17.00% | ₹25,001 – ₹40 lakh | Varies | Up to 36 months |
| Manappuram Finance | 9.90% (0.825%/month) | ₹1,000 – ₹1.5 Crores | ₹25 + tax | 3 – 36 months |
| Muthoot Finance | 12.00% – 26.00% | From ₹1,500 | Varies | 7 days – 3 years |
| Bajaj Finance | Enquire with lender | Varies | Up to 0.20% (incl. taxes) | 3 – 36 months |
Source: CreditMantri (2026); HDFC Bank official website (September 2026); Attica Gold Company (July 17, 2026); Manappuram Finance official website (2026); FincashData (August 17, 2026); Bajaj Finserv official website (2026); SBI official website (July 1, 2026). All accessed September 20, 2026. Rates are indicative and subject to change.
A few things stand out from this comparison. SBI offers the lowest starting rate at 8.75% p.a. and a high maximum loan of ₹50 lakhs, making it attractive for larger pledges. Manappuram stands out at the micro end — you can borrow from just ₹1,000, ideal for small, urgent needs. Muthoot's upper rate of 26.00% p.a. is among the widest bands in the industry, so always check which scheme you qualify for before signing.
RBI LTV Rules for Gold Loans (Effective April 1, 2026)
The RBI revised its LTV framework effective April 1, 2026, introducing a tiered structure based on loan size. This directly impacts how much per gram you can borrow. The higher the LTV cap, the more cash you unlock from the same weight of gold.
| Loan Amount | Maximum LTV Ratio (Effective April 1, 2026) |
|---|---|
| Up to ₹2.5 lakh | 85% |
| ₹2.5 lakh – ₹5 lakh | 80% |
| Above ₹5 lakh | 75% |
Source: Ujjivan Small Finance Bank (2026); Kosamattam Capital (2026). Accessed September 20, 2026.
What this means practically: if your loan requirement is under ₹2.5 lakh, you benefit from the most generous LTV of 85%, squeezing more value per gram from your pledged gold. Larger loans above ₹5 lakh revert to the standard 75% cap. Plan your pledge quantity accordingly.
Also note: bullet repayment (where you pay the entire principal and interest at the end of the term) is capped at a tenure of 12 months under RBI rules.
Fees and Charges You Should Not Ignore
The interest rate is only part of your total cost. Processing fees, valuation charges and late payment penalties can meaningfully affect what you end up paying. Here is what to look for when you compare loans:
- Processing fee: Typically 0.25% to 2% of the loan amount, though some lenders charge a fixed fee instead. SBI charges 0.50% (minimum ₹500 + GST); Bajaj Finance charges up to 0.20% inclusive of taxes; Manappuram charges a flat ₹25 plus tax — one of the lowest in the market.
- Valuation / XRF testing fee: Ranges from ₹250 to ₹500 at most lenders. This is the cost of assessing your gold's purity in-branch.
- Late payment charge: HDFC Bank, for instance, levies a late payment charge at 18% p.a. on overdue amounts. Always check this rate before you borrow, especially if your repayment timeline is uncertain.
- Renewal / re-appraisal fee: If you renew your gold loan, expect a re-appraisal fee of around 50% of the original valuation cost.
- Prepayment penalty: Most gold loans in 2026 carry zero prepayment penalties, giving you the flexibility to close early without extra cost.
After you repay the full loan, lenders are required to return your gold within 7 working days. If there is any delay, follow up in writing with your branch.
Gold Loan vs. Other Secured Loan Options
A gold loan is not your only secured borrowing option. If you own property, a Loan Against Property can offer higher loan amounts at potentially lower interest rates, though with longer processing times and more documentation. If you hold stocks or mutual funds, a Loan Against Securities offers similar speed advantages without requiring you to liquidate your investments.
For smaller, unsecured needs, a Personal Loan requires no collateral at all, though rates are generally higher than secured loans. If you are a business owner, a Business Loan or MSME Working-Capital Loan may be a better structural fit than pledging personal gold.
The key advantage of a gold loan remains its speed and simplicity — minimal documentation, no credit score requirement at most lenders, and same-day disbursal in most cases.
Frequently Asked Questions
What is the gold loan per gram rate in 2026?
The per-gram loan value depends on the purity of your gold and the LTV ratio your lender applies. Based on early 2025 reference prices, 24K gold yields a loan value of approximately ₹5,000 per gram at 75% LTV, 22K yields around ₹4,600 per gram, and 18K yields around ₹3,800 per gram. Since gold prices move daily, the exact per-gram amount at the time of pledging will reflect the live market rate on that date.
Which bank offers the lowest gold loan interest rate?
Among major lenders, State Bank of India offers a starting rate of 8.75% p.a., which is among the lowest available. HDFC Bank and Axis Bank start at 9.00% and 9.75% p.a. respectively. The all-India range runs from 8.05% to 27% p.a., so rates vary widely based on lender, scheme and your loan amount.
What is the maximum LTV for a gold loan in 2026?
Under revised RBI guidelines effective April 1, 2026, the maximum LTV is 85% for loans up to ₹2.5 lakh, 80% for loans between ₹2.5 lakh and ₹5 lakh, and 75% for loans above ₹5 lakh.
What gold purity is accepted for a gold loan?
Most lenders accept gold between 18K and 24K, with 22K jewellery being the most common benchmark. Coins and bars are accepted by some lenders but not all — confirm this before you visit the branch.
Can I repay my gold loan early without a penalty?
Yes. In 2026, most gold loans carry zero prepayment penalties, so you can close the loan before the end of the tenure without incurring additional charges. Once you repay in full, your lender must return your gold within 7 working days.
Compare and Apply for the Best Gold Loan Today
Getting the best gold loan per gram rate is about more than just the headline interest rate — it's the combination of LTV, processing fees, tenure flexibility and lender trust. Use our loan eligibility calculator to check how much you can borrow, and head to our Gold Loan comparison page to see current offers from multiple lenders side by side. If you want to explore options across all lender types, browse loans by lender on OnePaisa to find the right fit for your needs.
Loans Editor, OnePaisa Editorial
Prasanth writes on borrowing for OnePaisa — personal, home, car and business loans, and the credit-score questions that decide what a borrower is actually offered. Interest rates, processing fees and eligibility rules in his guides come from lender schedules of charges and official product pages, are cross-checked against OnePaisa's verified lender data, and are dated so readers can see how current they are. A rate that a lender publishes as a range is published here as a range, never as a single teaser number.
Work published under this byline follows OnePaisa’s editorial standards — how our guides are researched, fact-checked against primary sources, and corrected.