Gold loan Interest Rates
Har Business Ke Liye,
Gold loan Hai Taiyaar!
1 Cr.+
Happy Customers
3000+
Branches Nationwide
₹3,000/-
Minimum Loan Amount
Up to 85%
Maximum Value of Gold
RBI Regulated NBFC
- Customer rating,
1 Lac+ Reviews
Pledged gold is secured & insured
Zero Hidden Charges
30+ Years of Trust
Gold Loan Interest Rate Starting 0.81% Per Month
When comparing gold loans, the interest rate is one of the most important factors to consider. It influences the overall borrowing cost and helps borrowers evaluate different loan schemes more effectively. IIFL Finance offers gold loan interest rates starting from 0.81% per month onwards (9.72% per annum). Explore the current gold loan interest rate chart, fee schedule, repayment options, and interest calculation examples below to make an informed borrowing decision.
Over 1 Cr.
Customers Served
3000+
Branches Nationwide
Rs 3,000
Minimum Loan Amount
Maximum Up to 85%
Of Gold Value (as per RBI slabs)
- RBI Regulated NBFC
- 4.8 stars, 50,000+ Reviews
- Pledged gold is secured and insured
- Zero Hidden Charges
- 30+ Years of Trust
- Trusted by 1Cr+ Happy Customers
How Gold Loan Interest Is Calculated
Interest in a loan can be structured in two broad ways. Simple interest is charged only on the principal amount borrowed, so the interest cost for each period stays linked to the original loan amount. Compound interest, on the other hand, is charged on the principal plus any interest that has already accumulated, which can increase the total cost over time if dues are not serviced regularly.
Gold loan interest at IIFL Finance is calculated on a simple interest basis, so your interest is charged only on the principal you borrow, keeping your interest cost steady and predictable through the tenure. The applicable gold loan rate of interest and the exact computation for your scheme are confirmed at the time of loan sanction and recorded in the loan agreement, so review it before signing and service your interest on time to keep your overall borrowing cost under control.
Simple Interest
The interest payable on a gold loan depends on three inputs: the loan amount, the applicable rate, and the tenure. The interest payable can be estimated using the formula below, followed by a worked example using IIFL Finance's starting rate of 9.72% per annum (0.81% per month onwards) on a loan of Rs 1,00,000 for 12 months, so you can see what the gold loan interest rate in practice is.
Interest Payable = Loan Amount × Interest Rate (p.a.) × Tenure in Months ÷ 12
| Step | Calculation |
|---|---|
| Identify the inputs | Loan Amount = Rs 1,00,000; Interest Rate = 9.72% p.a.; Tenure = 12 months |
| Apply the formula | Interest Payable = Rs 1,00,000 × 9.72% × 12 ÷ 12 = Rs 11,880 |
| Approximate monthly interest | Rs 11,880 ÷ 12 = Rs 990 per month |
| Total amount payable | Rs 1,00,000 + Rs 11,880 = Rs 1,11,880 |
Note:
Figures are for illustrative purposes only. The actual interest depends on your sanctioned amount, applicable rate, scheme, and tenure, and is confirmed in your loan agreement. Actual amounts may vary.
How Simple Interest Compares with Compound Interest
Under compound interest, the interest for each period is calculated on the principal plus any interest that has already built up. In everyday terms, that means paying interest on the interest, which makes the total cost grow faster over time. On the same Rs 1,00,000 loan at 0.81% per month for 12 months, monthly compounding would work out to roughly Rs 12,549 in interest instead of Rs 11,880, about Rs 669 more. The simple interest structure keeps your cost linked to the original principal instead, which is what makes your monthly interest outflow predictable. Do remember that penal charges apply separately on overdue amounts as per the fee schedule on this page, so servicing your interest on time is still the surest way to keep costs low.
Estimate your gold loan and repayment
Use the IIFL Finance gold loan EMI calculator to estimate the loan amount and explore repayment options across different tenures.
Current Gold Loan Interest Rate & Charges
| Types of Fees | Current Applicable Charges |
|---|---|
| Interest Rate | 0.81% onward p.m. (9.72% - 27% p.a.) Rates varies depending on scheme availed |
| Processing Charges | Up to 2% (Exclusive of GST) |
| Penal / Default Charges | 0.5% p.m. (6% p.a.) (GST not applicable) |
| Mark to Market (MTM) Charges | ₹500 (Exclusive of GST) |
| Stamp Duty & Other Statutory Charges | As per applicable laws of the State |
| Auction Charges | ₹1500 (Exclusive of GST) |
| Overdue Notice Charges (Once in 90 days) | ₹200 per notice (Exclusive of GST) |
| SMS Charges | ₹5 per quarter (Exclusive of GST) |
| Part-Payment Charges | NIL |
| Foreclosure Charges | NIL (Minimum 7 days of interest is charged if loan is closed within 7 days) |
| Gold Maintenance Charges | Up to ₹5 per gram per month as per the applicable scheme (Exclusive of GST) |
| Credit Appraisal Charges |
₹100 (Exclusive of GST). Applicable to all
|
| Customer Point Verification (CPV) Charges | ₹150 for sanction amount between ₹7 lakh and ₹30 lakh. ₹250 for sanction amount above ₹30 lakh (Exclusive of GST) |
| Top-up Charges | One time free per month, then ₹250 per transaction (Exclusive of GST) |
| Part Release Charges | One time free per month, then ₹499 per transaction (Exclusive of GST) |
Processing fee is subject to the availed scheme and loan amount. The applicable rates are mentioned in the loan sanction letter at the time of disbursement.
Outstanding due amount for this purpose includes the Principal outstanding and Interest accrued. Penal charges will not be levied on the outstanding penal due amount.
MTM Charges shall be as defined in the T&C.
Additional Charges & Fees on Gold Loans
Apart from the Gold Loan interest rate, borrowers may incur additional charges for services provided by the lender. At IIFL Finance, we recognise the importance of keeping these costs minimal and transparent.
Our Gold Loan interest rates are attractive, and the associated charges are nominal. The processing fee varies based on the scheme chosen, starting from zero. Additionally, MTM (Mark-to-Market) charges are a flat ₹500.
IIFL Finance offers
competitive gold loan interest rates
along with
clear and transparent charges
, making its gold loan solutions both affordable and easy to access.
All applicable fees are
openly disclosed on the website,
so you can review the costs in advance and make informed decisions. With a commitment to transparency, customers benefit from
straightforward pricing with no hidden charges.
Factors That Affect Your Gold Loan Interest Rate
Five factors determine the gold loan rate of interest you are offered. Understanding each one helps you choose the scheme and structure that gets you a favourable interest rate on gold loan for your situation.
| Factor | How it affects your rate |
|---|---|
| Gold Purity | The purer your gold, the better your rate. Jewellery between 18 and 22 karat qualifies, and higher karat gold carries more assessed value per gram, helping you unlock a larger loan at a more competitive rate. BIS Hallmark 22K is the most commonly accepted form. |
| Loan-to-Value Ratio | LTV is how much you borrow against your gold worth. As per the latest regulations, you can borrow up to 85% for loans up to Rs 2.5 lakh, 80% up to Rs 5 lakh, and 75% beyond. Borrowing slightly less may fetch a better rate. |
| Loan Tenure | Shorter tenures, such as 3 or 6 months, help you save on total interest paid even at the same monthly rate. Pick a tenure that balances your monthly budget with overall interest savings. |
| Repayment Option | Choose between EMI and bullet repayment, each with its own interest structure. Servicing interest regularly and matching the repayment frequency to your income cycle keeps your total borrowing cost comfortably low. |
| Borrower Profile | Your occupation and income pattern, whether farmer, homemaker, salaried employee, or trader, helps match you with the scheme, tenure, and repayment structure that fits how you earn, which can influence the rate you get. |
Gold Loan Repayment Options
IIFL Finance offers flexible repayment and closure options to match different borrower needs and cash flow patterns. Choose the option that fits your income cycle before applying.
| Repayment Option | How it works | Best for |
|---|---|---|
| Equated Monthly Instalment (EMI) | Pay a fixed amount each month covering both principal and interest. The total repayment amount is known upfront, and each payment reduces the outstanding principal. | Salaried individuals and borrowers with a regular monthly income who want a predictable, fixed repayment schedule. |
| Bullet Repayment | Pay only the interest during the tenure at the chosen frequency. The full principal is repaid as a single lump sum at the end of the loan tenure, which is why it is called a bullet repayment—the principal goes out in one shot. | Farmers, traders, and borrowers with seasonal or irregular income who need low monthly outflows during the tenure. |
| Part Payment | Pay a portion of the outstanding principal at any time during the tenure at no extra charge. This reduces the outstanding balance and lowers the interest payable for the remaining tenure. | Borrowers with variable cash flows who want to reduce their interest burden whenever surplus funds are available. |
| Foreclosure | Foreclosure simply means closing your loan before the tenure ends. You repay the full outstanding principal and accrued interest, after which the pledged gold is released. IIFL Finance does not charge a foreclosure fee; a minimum of 7 days interest applies if the loan is closed within 7 days. | Borrowers who receive a lump sum, such as a bonus or business receipt, and want to close the loan early and release their gold. |
Choose a repayment plan that fits your budget
The IIFL Finance gold loan EMI calculator can help estimate the loan amount, EMI and repayment tenure based on the details entered.
Payment Modes
Once your loan is active, IIFL Finance gives you multiple convenient ways to pay your interest, EMI, or part payments.
| Payment mode | How it works |
|---|---|
| IIFL Finance Loans Mobile App | Download the IIFL Finance Loans app from the Play Store or App Store, sign in to your loan account, and pay your interest, EMI, or part payment directly from your linked bank account. |
| Online Payment (Quick Pay) | Use the Quick Pay facility on the IIFL Finance website to make secure online payments towards your gold loan without visiting a branch. |
| At the Branch | Visit your nearest IIFL Finance gold loan branch and pay in cash or through other accepted modes. |
Note:
This table is for illustrative purposes. Available payment modes may vary by scheme and location; confirm at the branch. Actual amounts may vary.
How IIFL Finance Mobile App Can Help
The calculator can help estimate the amount that may be available against your gold, while the IIFL Loans Mobile App helps you keep track of your loan after disbursal.
-
View your loan details, outstanding balance and account summary in one place.
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Make interest or repayment payments through the app and download your account statement whenever required.
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Access eligible loan services such as repayments, renewals and top-up requests digitally, subject to applicable terms and availability.
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The IIFL Loans Mobile App can be downloaded from the Google Play Store and the Apple App Store.
Gold Loan Interest Rate FAQs
At IIFL Finance, the gold interest rate is determined by gold purity, loan amount, repayment frequency, tenure, and the selected scheme. These factors together decide the applicable interest rate on a Gold Loan, which is disclosed transparently before loan disbursal.
Ways to reduce the Gold Loan rate of interest include timely interest payments, choosing a suitable repayment frequency, and opting for schemes that offer benefits over time. Maintaining loan discipline can help borrowers move closer to the lowest available Gold Loan interest rate.
IIFL Finance offers flexible interest repayment options based on the selected scheme and repayment frequency. Borrowers can opt for bullet repayment, pay interest through the IIFL Loans Mobile App, or make payments at an IIFL Finance branch, while keeping the principal amount unchanged during the loan tenure.
Yes, the Gold Loan interest rate may vary based on the loan amount, repayment frequency, and selected scheme. Higher loan amounts or specific repayment structures can influence the Gold Loan lowest interest rate applicable to a borrower.
No, your credit score will not affect the interest rates of the gold loan. The gold loan rate of interest is primarily determined by the current market value of your gold. When gold prices are high, interest rates tend to be lower, and vice versa.
You can repay the gold loan either using the all-new IIFL Loans mobile app (which can be easily downloaded from the Play Store) or by visiting your nearest IIFL Finance’s Gold Loan branch and paying the interest or principal in cash. If you are not comfortable paying through cash, then you can seek help from the branch executive who will guide you about other modes of payment.
Yes, there is an option to make a part-payment of the gold loan. Remember that IIFL Finance does not require you to pay any charges for this service. It is absolutely free of charge.
Since the Gold Loans are secured against gold, approval does not depend solely on CIBIL score. Even borrowers with low or limited credit history may access a low-interest Gold Loan, as the interest rate is primarily based on gold value and scheme terms.
Gold Loan interest is charged on the outstanding loan amount as per the selected scheme. The interest may be serviced monthly or at the chosen repayment frequency, and the applicable Gold Loan interest rate is clearly communicated at the time of loan sanction.
To get the lowest Gold Loan interest rate, borrowers should choose the right scheme, maintain timely interest payments, and select an appropriate repayment frequency. Gold purity and loan amount also influence the interest rate on a Gold Loan offered under different Gold Loan schemes.
Taking an interest-free gold loan may not be an option at IIFL Finance, you can opt for a gold loan at nominal rates
Yes, the Interest rates on your gold loan will vary according to the purity of your gold jewelry
IIFL Finance provides special schemes for farmers where the interest rates are lower so that they can avail gold loan to cater their capital requirements
The Gold Loan interest rates at IIFL Finance start from 9.72% per annum and can go up to 27% per annum.
EMI-based gold loan functions as any other loan, where the full amount is disbursed after the processing of application and the repayment is made in equated monthly installments as per gold loan scheme availed
Yes, you can only pay the interest on your gold loan and settle the principal amount at the end of the tenure
In a gold loan process, the borrower pledges their gold ornaments as collateral to the lender. The lender evaluates the gold, and depending on the purity and weight of the pledged gold, a loan amount is approved, and the amount is quickly disbursed. The borrower, in turn, has to repay the loan amount within a fixed tenure to reclaim their gold.
At IIFL Finance, gold loan interest rates can be fixed or variable. What makes our loans special is the interest rates with rebates, which help eligible borrowers reduce their effective interest cost, making repayments more affordable.
Gold prices influence gold loan interest rates by affecting the value of the collateral. When the gold price today is high, lenders consider it as lower risk, potentially offering reduced interest rates. Conversely, declining gold prices may prompt lenders to increase rates to mitigate the risk of collateral devaluation.
Apart from gold loans, IIFL Finance offers a wide range of financial products tailored to meet the needs of individuals, small businesses, and entrepreneurs. Three of their key offerings include Business Loans>, MSME loans and Secured Business Loans.
The interest rate for a ₹1 lakh gold loan with IIFL Finance can range between 9.72% and 27% per annum. However, the exact interest rate will depend on factors like the gold loan scheme that you have opted for, your eligibility, and the loan tenure. Plus, there may also be other charges like processing fees and mark-to-market (MTM) charges.
