Gold loans have become a trusted credit option where individuals can use their gold jewellery and ornaments as collateral for financing. This service is offered by both banks and NBFCs, including notable institutions like SBI, ICICI Bank, and HDFC Bank, along with companies such as Muthoot Finance and Manappuram Finance.

The loan amount you can access against your gold belongings is influenced by factors including the gold's purity, the Loan-to-Value (LTV) ratio, and the lender's own criteria. Each financial establishment defines its own minimum and maximum limits for gold loans. For instance, ICICI Bank extends gold loans from Rs. 10,000 to Rs. 1 crore, whereas SBI provides loans ranging from Rs. 20,000 to Rs. 20 lakh. On the other hand, Muthoot Finance imposes no upper constraint, beginning their offerings at Rs 1,500.

When planning to obtain a gold loan, it's crucial to compare interest rates, eligibility requirements, and the loan amounts offered by different banks and NBFCs to make an informed choice.

Top 10 Banks and NBFCs Offering Gold Loans in India for 2021

1. Muthoot Finance: Interest Rate- 12% per annum onwards, Loan Amount- Rs 1,500 – No Limit, Tenure- 7 days to 36 months, Processing Fee- 0.25% to 1% of the loan amount.
2. IIFL: Interest Rate- 9.24% per annum onwards, Loan Amount- Rs.3,000 onwards, Tenure- 3 months to 11 months, Processing Fee- Not available.
3. HDFC Bank: Interest Rate- 9.90% onwards, Loan Amount- Rs.25,000 onwards, Tenure- 3 months to 24 months, Processing Fee- 1.5% + GST.
4. ICICI Bank: Interest Rate- 11% per annum onwards, Loan Amount- Rs.10,000 to Rs.1 crore, Tenure- 3 months to 12 months, Processing Fee- 1% of the loan amount.
5. Canara Bank: Interest Rate- 7.65% per annum onwards, Loan Amount- Rs.5,000 to Rs.20 lakh, Tenure- 6 months to 2 years, Processing Fee- 0.25% of the loan amount.
6. Axis Bank: Interest Rate- 12.50% per annum onwards, Loan Amount- Rs.25,001 to Rs.25 lakh, Tenure- 3 months to 3 years, Processing Fee- 1% plus GST.
7. Manappuram Finance: Interest Rate- 9.90% per annum onwards, Loan Amount- Rs.1,000 to Rs.1.5 crore, Tenure- Minimum of 3 months, Processing Fee- Rs.10 at the time of loan settlement.
8. Federal Bank: Interest Rate- 8.50% onwards, Loan Amount- Rs.1,000 to Rs.1.5 crore, Tenure- Minimum of 6 months, Processing Fee- Variable based on different schemes.
9. Bank of Baroda: Interest Rate- 8.75% per annum, Loan Amount- Up to Rs.25 lakh, Tenure- Up to 12 months, Processing Fee- 0% to 0.50% + GST.
10. SBI: Interest Rate- 7.50% per annum onwards, Loan Amount- Rs.20,000 to Rs.50 lakh, Tenure- Up to 36 months, Processing Fee- 0.25% + GST.

Each lender comes with specific features and offerings. Thus, it is advisable to consider various options before finalizing your decision. Additionally, familiarity with financial terms like UPI, RTGS, NEFT, IMPS, and services such as PPF, PMJJBY, PMSBY, APY, and SIP can be beneficial in managing your finances effectively. Additionally, understanding how an OD works, as well as the roles of institutions like the RBI, can be advantageous.