
Are there any hidden fees that I need to pay when taking a gold loan? Which are the renowned companies that give gold loans?


No, there aren’t any hidden fees when you take a gold loan.
However, for the service that these non-banking financial companies or banks provide you, they charge you a nominal processing fee.
While the processing fee varies from one bank to another, but it generally is not more than 2% of the total loan amount.
Gold loan provider | Interest rate | Processing fee |
HDFC Gold Loan | 9.6% onwards | Nil to 0.5% of loan sanctioned |
Muthoot Gold Loan | 12% onwards | 0.25% to 1% of loan sanctioned |
Manappuram Gold Loan | 14% onwards | Varies on a case-by-case basis |
ICICI Bank Gold Loan | 10.5% to 16.5% | 1% of loan amount |
SBI Gold Loan | 11.05% per annum | 0.5% of loan amount with a min. Rs. 250 |
Axis Bank Gold Loan | 14.50% to 17% | 1% of loan amount |
In addition to the processing fee, you are expected to pay a gold validation charge, which the bank will incur.
Additionally, some banks also charge a gold validation charge, which is an additional charge that banks have to incur at their end.
Banks and NBFCs that provide gold loans:
- HDFC Bank
- Muthoot Finance
- Manappuram Finance
- ICICI Bank
- State Bank of India
- Axis Bank
- Central Bank of India
- Federal Bank
No, there aren’t any hidden fees when you take a gold loan.
However, for the service that these non-banking financial companies or banks provide you, they charge you a nominal processing fee.
While the processing fee varies from one bank to another, but it generally is not more than 2% of the total loan amount.
Gold loan provider
Interest rate
Processing fee
HDFC Gold Loan
9.6% onwards
Nil to 0.5% of loan sanctioned
Muthoot Gold Loan
12% onwards
0.25% to 1% of loan sanctioned
Manappuram Gold Loan
14% onwards
Varies on a case-by-case basis
ICICI Bank Gold Loan
10.5% to 16.5%
1% of loan amount
SBI Gold Loan
11.05% per annum
0.5% of loan amount with a min. Rs. 250
Axis Bank Gold Loan
14.50% to 17%
1% of loan amount
In addition to the processing fee, you are expected to pay a gold validation charge, which the bank will incur.
Additionally, some banks also charge a gold validation charge, which is an additional charge that banks have to incur at their end.
Banks and NBFCs that provide gold loans:
- HDFC Bank
- Muthoot Finance
- Manappuram Finance
- ICICI Bank
- State Bank of India
- Axis Bank
- Central Bank of India
- Federal Bank