New Delhi, March 3 -- A gold loan is a type of secured loan in which you pledge gold jewellery or coins as collateral to borrow money from a bank or non-banking financial company for personal or business needs.

The lender assesses the purity and weight of the pledged gold and sanctions a loan amount based on its market value. In 2026, gold loan interest rates in India range from 8.5% to 24% per annum.

The applicable rate depends not only on the value or purity of the gold but also on several other factors, including the loan tenure, type of lender, loan amount, and repayment structure.

A gold loan interest rate is the percentage charged by banks or financial institutions against the loan amount provided to the borrower when they pledge...