What is a Gold Loan Interest Rate?
The interest rate on a gold loan is the percentage charged on the loan amount borrowed against your pledged gold. It determines the cost of borrowing and varies depending on the lender's policies, loan-to-value (LTV) ratio, and repayment tenure.
Comparison of Gold Loan Interest Rates in Tamil Nadu
| Lender |
Interest Rate (Monthly) |
Annualized Interest Rate |
Maximum LTV Ratio |
Processing Fee |
| Muthalagu Finance |
Starting at 0.74% |
8.88% |
Up to 75% |
None |
| Muthoot Finance |
Starting at 0.79% |
9.48% |
Up to 75% |
₹10 per ₹1,000 loan |
| Manappuram Finance |
Starting at 0.82% |
9.84% |
Up to 75% |
₹50 to ₹500 |
| HDFC Bank |
Starting at 0.89% |
10.68% |
Up to 75% |
0.5% of loan amount |
| ICICI Bank |
Starting at 0.95% |
11.4% |
Up to 75% |
1% of loan amount |
Note: Interest rates and charges are indicative and subject to change. Confirm with the respective lender.
Factors Influencing Gold Loan Interest Rates
- Loan-to-Value Ratio: Higher LTV ratios may attract slightly higher interest rates.
- Loan Amount: Larger loan amounts often come with better interest rates.
- Repayment Tenure: Shorter tenures typically have lower rates.
- Market Conditions: Interest rates may vary depending on gold price trends and RBI policies.
Why Choose Muthalagu Finance for Gold Loans?
- ✔ Lowest Interest Rates: Starting at 0.74% per month (8.88% per annum).
- ✔ No Processing Fees: Enjoy cost-effective loans with zero additional charges.
- ✔ Quick Disbursal: Get cash in minutes after gold evaluation.
- ✔ Secure Storage: Gold stored in high-security vaults with 24/7 CCTV monitoring.
Gold Loan EMI Calculation Example
| Loan Amount |
Tenure |
Monthly Interest Rate |
EMI (Approx.) |
| ₹50,000 |
12 months |
0.74% |
₹4,166 |
| ₹1,00,000 |
6 months |
0.74% |
₹8,333 |
Use our Gold Loan EMI Calculator to estimate your monthly repayment.
Advantages of Gold Loans Over Other Loan Types
- ✔ Lower Interest Rates: Cheaper than personal or credit card loans.
- ✔ Quick Approval: No income proof or credit score required.
- ✔ Flexible Repayment Options: Tailored to your financial needs.
- ✔ No Impact on Credit Score: Defaulting does not affect your CIBIL score as long as the gold is reclaimed.
Conclusion: How to Choose the Best Gold Loan Provider
When selecting a gold loan, prioritize low interest rates, transparent terms, and secure storage. Muthalagu Finance stands out as a reliable choice in Tamil Nadu, offering the lowest rates and excellent customer service.
Contact Us
📞 Call Us: +91 96981 18181
✉ Email: contact@muthalagufinance.in
💻 Apply Online: Gold Loan Application
