Top 10 Banks Offering Gold Loans for MSMEs in India

Top 10 Banks Offering Gold Loans for MSMEs in India

Micro, Small and Medium Enterprises (MSMEs) may require funds for working capital, inventory purchases, supplier payments, business expenses or expansion. A gold loan for MSMEs is one financing option where eligible gold jewellery is pledged as security against the loan.


Since the loan is secured against gold, the application and assessment process may be different from that of an unsecured business loan. However, interest rates, loan amounts, repayment options, charges and eligibility criteria vary between banks and individual loan schemes.


1. Federal Bank Gold Loan


Federal Bank is one the best bank which offers gold loan products for personal, business, agricultural and MSME-related requirements.


  1. Loan amounts range from ₹3,000 to ₹1.5 crore, depending on the applicable product and eligibility.
  2. Loans are available against eligible gold ornaments.
  3. Repayment options can include bullet repayment and instalments, depending on the product.
  4. The bank also offers a Digi Gold Overdraft facility.
  5. According to Federal Bank's published Q4 FY26 credit pricing information dated May 21, 2026, gold loan interest rates ranged from 8.50% to 22.90% per annum, with a reported mean rate of 10.82%.
  6. Processing and documentation requirements depend on the specific gold loan scheme.

2. Indian Bank


  1. Published pricing includes 8.45% for loans up to ₹10 lakh under the applicable MSME structure.
  2. Loans above ₹10 lakh are published at 8.75% under the stated pricing structure.
  3. Both bullet and EMI-based repayment options may be available depending on the scheme.
  4. The applicable interest rate, loan amount and charges depend on the borrower's profile and selected product.

3. ICICI Bank Gold Loan


ICICI Bank provides gold loans with digital application facilities and loan amounts of up to ₹3 crore, subject to applicable conditions.


  1. Interest rates can vary based on factors such as loan amount, tenure, gold purity and weight, and customer profile.
  2. The bank also provides information on gold loans for MSME and business requirements.
  3. Different repayment structures may be available depending on the product.
  4. Applicants should check the applicable rate and charges before proceeding.

4. Union Bank of India Gold Loan


Union Bank of India offers the Union MSME Gold Loan Plus scheme for eligible business borrowers.


  1. The stated maximum loan amount is ₹50 lakh.
  2. For eligible 22-carat gold, the published pricing is linked to EBLR.
  3. The stated rate structure includes EBLR + 0.70% for male borrowers and EBLR + 0.60% for female borrowers, subject to applicable terms.
  4. The bank also offers separate retail and agricultural gold loan schemes.



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5. HDFC Bank MSME Gold Loan


HDFC Bank offers gold-backed financing for business requirements through different structures.


  1. Available options include term loans, overdraft facilities and EMI-based repayment.
  2. HDFC Bank states that SME Gold Loan applications may qualify for 45-minute disbursement, subject to approval and applicable processes.
  3. Loans can be used for eligible business expenses and expansion requirements.
  4. Its reported Q4 FY26 gold loan IRR ranged from 9.00% to 19.00%, with an average of 10.86%.

6. Canara Bank Gold Loan


Canara Bank offers several gold-backed lending products, including Swarna Loan and Swarna Overdraft.


  1. The bank also has separate gold loan schemes for agriculture and allied activities.
  2. Published pricing for Swarna Loan is linked to RLLR + 0.95% under the stated structure.
  3. Agricultural gold loan pricing may follow a separate benchmark-based structure.
  4. MSMEs should confirm which gold-backed business loan product applies to their requirements.

7. Axis Bank Gold Loan for MSMEs


Axis Bank provides gold loan facilities for eligible MSME borrowers.


  1. The stated MSME gold loan amount ranges from ₹50,001 to ₹1 crore.
  2. The published interest-rate range is 9.75% to 17% per annum.
  3. The stated product has a 12-month tenure.
  4. Axis Bank also states that foreclosure charges do not apply to certain MSME loans up to ₹50 lakh, subject to applicable conditions.

8. State Bank of India SME Gold Loan


State Bank of India offers an SME Gold Loan for eligible business borrowers.


  1. The published maximum loan amount is ₹50 lakh.
  2. Interest rates are linked to the applicable benchmark and scheme.
  3. The stated assessment can consider the value of gold and estimated sales.
  4. Certain financial documents may not be required under the specified scheme.
  5. SBI's personal gold loan rates and SME gold loan rates can differ, so borrowers should verify the applicable business-loan pricing.

9. South Indian Bank Gold Loan


South Indian Bank offers gold-backed products for retail and MSME borrowers.


  1. Its Gold Power facility is available for retail and MSME categories.
  2. Published pricing lists Gold Power at Repo Rate + 9.05%, shown as 14.55% at the rate stated in the relevant document.
  3. Other products include Gold Max and Gold Max Agri.
  4. An overdraft-based structure may be relevant for businesses with variable short-term cash-flow requirements.

10. CSB Bank Gold Loan


CSB Bank offers several gold loan products alongside its MSME lending facilities.


  1. Products include General Gold Loan, Gold Loan – Retail Trade, Kanakashree Overdraft and Gold Loan for women.
  2. Its published information lists an EIR of 11.50% for certain general gold loan products.
  3. Gold-backed financing can be used for eligible short-term business requirements.
  4. Repayment structures and tenure can vary between products.

Key Benefits of Gold Loans for MSMEs


Gold loans may provide businesses with an alternative source of secured funding. Depending on the lender and product, potential benefits include:


  1. Faster access to funds compared with some forms of unsecured business financing.
  2. Secured borrowing, where eligible gold is provided as collateral.
  3. Flexible repayment structures, including EMI, bullet and overdraft options.
  4. Working-capital support for inventory, supplier payments and other eligible business expenses.
  5. The borrower can retain ownership of the gold, subject to repayment of the loan and applicable conditions.

What MSMEs Should Compare Before Applying


Rather than comparing only the advertised interest rate, businesses should review the complete cost and terms of the loan. Important factors include:


  1. Interest rate and applicable benchmark
  2. Maximum loan amount and loan-to-value ratio
  3. Processing and valuation charges
  4. Repayment method and tenure
  5. Foreclosure or prepayment charges
  6. Gold purity and valuation requirements
  7. Documentation requirements
  8. Eligibility criteria for the specific MSME scheme

Final Thoughts


Gold loans can be considered by MSMEs that require short-term business funding and have eligible gold available as collateral. Banks differ considerably in their loan limits, pricing, repayment structures, fees and eligibility requirements.


Before applying, MSME borrowers should check the latest interest rates, charges, loan-to-value requirements, eligibility criteria and repayment conditions directly with the respective bank.


The final loan amount and interest rate will depend on the bank's assessment, the applicable scheme and the borrower's eligibility.


Interest rates, charges, loan limits and eligibility conditions are subject to change. The information above is for general informational purposes and should be verified with the respective bank before making a borrowing decision.