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Are you planning to buy a house or need urgent funds? If you’re considering taking a gold loan, now might be a great time! A gold loan allows you to borrow money by pledging your gold ornaments or jewelry as collateral. It involves minimal paperwork, quick disbursal, and flexible repayment options.
With gold prices crossing ₹88,000 per 10 grams in India, you can now get a higher loan amount for the same quantity of pledged gold. But how much EMI will you need to pay if you take a ₹5 lakh gold loan? Let’s break it down bank-wise to help you choose the best deal.
Gold Loan EMI for ₹5 Lakh (2-Year Tenure) – Bank-Wise Comparison
Here’s a detailed comparison of the EMIs you’ll pay on a ₹5 lakh gold loan for 24 months (2 years) at different interest rates:
| Bank Name | Interest Rate (%) | EMI (₹ per month) |
|---|---|---|
| HDFC Bank | 8.50% | ₹22,568 |
| Indian Bank | 8.65% | ₹22,599 |
| Union Bank of India | 8.70% | ₹22,610 |
| Bank of India | 8.80% | ₹22,631 |
| Canara Bank | 9.25% | ₹22,725 |
| Punjab National Bank (PNB) | 9.25% | ₹22,725 |
| Bank of Baroda | 9.40% | ₹22,756 |
| State Bank of India (SBI) | 9.60% | ₹22,798 |
| ICICI Bank | 10.00% | ₹22,882 |
| Axis Bank | 17.00% | ₹24,376 |
Gold Loan Offers by Leading Banks
HDFC Bank
- Interest Rate: 8.5%
- EMI for ₹5 Lakh (2 years): ₹22,568
- Why Choose? Low interest rate and fast loan approval.
Indian Bank
- Interest Rate: 8.65%
- EMI for ₹5 Lakh (2 years): ₹22,599
- Why Choose? Competitive rate for public sector bank customers.
Union Bank of India (Cheapest Gold Loan Offer)
- Interest Rate: 8.7%
- EMI for ₹5 Lakh (2 years): ₹22,610
- Why Choose? One of the lowest rates among public sector banks.
Bank of India
- Interest Rate: 8.8%
- EMI for ₹5 Lakh (2 years): ₹22,631
- Why Choose? Low processing fees and transparent policies.
Canara Bank & Punjab National Bank (PNB)
- Interest Rate: 9.25%
- EMI for ₹5 Lakh (2 years): ₹22,725
- Why Choose? Good option for existing bank customers.
Bank of Baroda
- Interest Rate: 9.4%
- EMI for ₹5 Lakh (2 years): ₹22,756
- Why Choose? Quick disbursal with doorstep service.
State Bank of India (SBI)
- Interest Rate: 9.6%
- EMI for ₹5 Lakh (2 years): ₹22,798
- Why Choose? Reliable and available nationwide.
ICICI Bank
- Interest Rate: 10%
- EMI for ₹5 Lakh (2 years): ₹22,882
- Why Choose? Higher approval rate for salaried and self-employed.
Axis Bank (Highest Interest Rate)
- Interest Rate: 17%
- EMI for ₹5 Lakh (2 years): ₹24,376
- Why Choose? Available even for those with lower credit scores.
Key Benefits of Taking a Gold Loan
Fast Approval & Instant Disbursal – Most banks disburse loans within 30 minutes to a few hours.
Minimal Documentation – No need for income proof, just KYC and gold verification.
Flexible Repayment Options – Choose monthly EMIs, bullet payments, or overdraft facility.
No Impact on Credit Score – Unlike personal loans, your CIBIL score isn’t a major factor.
High Loan Amounts – Get up to 75% of the gold’s value as a loan.
Things to Keep in Mind Before Taking a Gold Loan
Loan Tenure Matters – Interest rates can vary based on loan duration. Shorter loans often have lower rates.
Compare Processing Fees – Some banks charge processing fees, so check the final cost before applying.
Gold Purity & Valuation – The loan amount depends on gold purity (18K, 22K, or 24K).
Repayment Flexibility – Check if prepayment or part-payment options are allowed.
Auction Risk – If you fail to repay the loan, the bank has the right to auction your gold.
