Muthoot Finance Gold Loan Interest Rate (2026)

The Muthoot Finance gold loan interest rate starts from 9% p.a. if interest is serviced monthly (rate page, 2 October 2026). Scheme cards list monthly-payment rates such as 13.9% p.a. (SIR) and 23% p.a. (MIR), and Muthoot shows a 24% p.a. base rate on its HEG and UBI cards. Interest compounds monthly and normal tenure is 12 months.

There is no single Muthoot rate. What you pay depends on the scheme your loan falls into, whether you pay interest every month, how long the interest is left to compound, and the charges added at closure. This guide puts Muthoot Finance's own scheme wording, its service-charge table and the Reserve Bank of India's 2025 gold loan rules side by side, and turns them into a real annual cost. thegoldratetoday.com is not a lender and has no link with Muthoot; treat every figure as "as listed on 2 October 2026" and confirm your slab at the branch.

Muthoot Finance gold loan interest rate: the short answer

Muthoot's rate page carries the title "Gold Loan Interest Rate - Starting from 1% p.m." and, in the body, three statements that matter more than any headline: "Interest is compounded monthly at the applicable rate for each slab. Loan tenure is 12 months for a normal Gold Loan scheme. Minimum Interest Rate starting from 9% p.a. if interest is serviced monthly."

Taken together, they mean the low figure is a minimum, it depends on paying interest monthly, and any interest you skip is added to the balance every month. If you plan to repay everything in one go at the end of the year, the stated scheme rate is only the starting point; monthly compounding pushes the effective cost higher. Before you visit a branch, calculate gold loan interest on your own loan amount and gold weight, so you know roughly what the year will cost and can compare the quote you are given.

Muthoot's FAQ adds two useful facts: the minimum gold loan is Rs 1,500 with no maximum limit, and changes in the repo rate affect floating-rate gold loans, not fixed-rate ones. Ask which type your scheme is.

Muthoot gold loan schemes and rates compared

The Muthoot gold loan schemes on the rate page differ by ticket size, loan-to-value (LTV) ratio and the condition attached to the rate. The table quotes Muthoot's wording exactly, because the conditions decide what you pay.

The scheme list on the same page also shows MVI at 80% LTV (Rs 5,000 to Rs 5 lakh), HVI at 75% (Rs 5 lakh to Rs 5 crore), HEG at 75% (Rs 15 to 25 lakh) and HMG at 75% (Rs 25 to 50 lakh). The SIR ticket size appears as Rs 1,500 to Rs 50,000 in one card and Rs 5,000 to Rs 2.5 lakh in another, so ask the branch which applies.

What "with X% rebate" means

The SIR, SVI, MIR and HVG cards do not explain the rebate in rupees, but two other cards on the same page do. The HEG and UBI cards list a "Base Interest Rate: 24% p.a." and show the rebate taken off it to give an "Effective Interest Rate". On every card that quotes "X% p.a. with Y% rebate", the card rate plus its rebate adds up to 24% p.a., the base rate Muthoot shows on its HEG and UBI cards: MIR 23% + 1%, SVI 20% + 4%, HVG 14% + 10%. So the card rate is what you pay after the rebate for paying all interest monthly; miss the condition and the rate can go back towards the 24% base. The SIR (13.9%), HPG (14.5%) and MVB (14%) cards give no rebate figure, so their base is not stated.

Ask in writing which rate applies if you do not pay monthly, and check it in the loan document before you sign.

How Muthoot calculates gold loan interest

Monthly compounding

Muthoot states that interest is compounded monthly at the applicable rate for each slab. Each month, unpaid interest is added to what you owe, and the next month's interest is charged on the larger amount. A nominal annual rate therefore costs more than its face value when you leave interest unpaid for the full year. The table below shows how big that gap is on the rates quoted above and on the 24% base, assuming no payment for 12 months.

These figures use the formula (1 + r/12)^12 - 1 and are illustrative. The card rates apply when 100% of the interest is paid monthly, and if you pay monthly there is no unpaid interest to compound. If you stop paying on a card whose rate plus rebate adds up to 24%, the last row shows what losing the rebate could cost.

Paying interest monthly vs at the end

Most of the low Muthoot gold loan interest rates on the page carry the same condition: "if 100% interest is paid monthly". It is the biggest lever you control. Paying monthly gives you access to the rate the card advertises and stops interest from compounding. Paying at the end means the card's condition is not met, so ask which rate then applies; on the HEG and UBI cards the rate goes back to the 24% base, and the balance also grows each month. For the Small Value Interest Repayable Scheme (SVI), Muthoot links payment to e-NACH, an automatic bank mandate, so the monthly payment happens without a branch visit.

Fixed vs floating rates

Muthoot's FAQ says changes in the repo rate affect floating-rate gold loans but not fixed-rate ones. If your scheme is floating, the rate can move during the tenure; if it is fixed, the agreed rate holds. Ask which applies and get it on the sanction letter.

Charges on top of the interest rate

Muthoot gold loan charges come from the service-charges table on the same page. Some apply only in certain regions, so the "Where it applies" column matters.

Safe custody is easy to overlook. It is charged per gram of gold pledged, not per rupee borrowed, so a heavy piece pledged for a small loan carries a high custody cost relative to the loan. On 10 grams it comes to Rs 600 a year; on 40 grams, Rs 2,400 a year.

Worked example: what Rs 1,00,000 really costs for a year

Here is how much interest a Rs 1 lakh Muthoot gold loan can cost, built only from the figures above. Assume a hypothetical borrower in the rest of India pledges 40 grams of jewellery and borrows Rs 1,00,000 under MIR, whose card rate of 23% p.a. with 1% rebate adds up to the 24% p.a. base. The borrower makes no interest payments, loses the monthly-payment rebate and, assuming the 24% base then applies, repays everything after 12 months. No gold price is used, because the cost depends on what you borrow, not on the value of the gold.

• Interest: 24% compounded monthly for 12 months = Rs 26,824.
• Safe custody: 40 g x Rs 5 x 12 months = Rs 2,400.
• Security charge: 0.20% of Rs 1,00,000 = Rs 200 (inside the Rs 150 minimum and Rs 1,000 maximum).
• Total cost for the year: Rs 26,824 + Rs 2,400 + Rs 200 = Rs 29,424, before SMS and notice charges.

In a southern branch, the IPL service charge of 1% (Rs 1,000 on this loan) replaces the security charge in the sum. The all-in cost can sit well above the rate on the card. If the same borrower pays 100% of the interest every month, the 23% card rate applies instead of the base and nothing compounds, though safe custody and service charges still apply. Run your own numbers through the gold loan calculator before signing.

How much loan per gram: RBI's 2025 LTV rules

How much Muthoot lends per gram is not set by Muthoot alone. Since the Reserve Bank of India's Lending Against Gold and Silver Collateral Directions, 2025 (RBI/2025-26/47, issued 6 June 2025, updated 29 September 2025, with compliance due by 1 April 2026), the maximum loan-to-value (LTV) ratio depends on the loan size.

LTV tiers

Two details reduce the amount you actually receive. First, for bullet repayment loans, where principal and interest are paid together at the end, the LTV is measured on the total amount repayable at maturity, so the interest for the tenure eats into the cap and the cash you receive upfront is lower. Second, bullet consumption loans are capped at 12 months, renewable. This is why some aggregator pages that still apply a flat 75% to every loan are out of date for smaller loans.

How your gold is valued

Under the 2025 Directions, the lender values your gold at the lower of the 30-day average closing price or the previous day's closing price for its purity, taken from the India Bullion and Jewellers Association (IBJA) or a SEBI-regulated commodity exchange. So the per-gram loan is roughly: value per gram for your purity x grams of gold x the LTV for your loan size. We do not quote a per-gram rupee figure here, because it changes daily. To check today's rate and turn it into a loan amount, use the gold loan calculator, which is prefilled with the live rate and lets you enter your lender's LTV. The Directions also cap pledges at 1 kg of ornaments and 50 g of coins per borrower.

Your rights when you repay or default

The same Reserve Bank of India Directions protect borrowers at both ends of the loan. When you repay in full, the pledged gold must be returned the same day and no later than seven working days afterwards. If the delay beyond seven working days is attributable to the lender, it must pay Rs 5,000 compensation for each day of delay.

If a loan is not repaid and the gold goes to auction, the reserve price must be at least 90% of the current value of the gold, falling to 85% only after two failed auctions. Muthoot's charges table shows what the run-up costs: Rs 30 per notice, Rs 100 for the 4th registered notice and Rs 120 for the auction notice. Paying interest monthly is the simplest way to avoid that stage.

Muthoot vs other gold loan lenders

Muthoot Finance is a non-banking finance company (NBFC); banks such as State Bank of India also lend against gold. The differences lie in scheme structure, conditions, charges and paperwork. Our SBI gold loan interest rate guide covers the bank side so you can compare a lender's stated rate with Muthoot's scheme wording on the same basis.

Manappuram Finance is another NBFC gold lender. We have not researched its rates for this page, so we make no comparison. Whichever lenders you shortlist, compare four numbers: the rate on the sanction letter, whether it is fixed or floating, the condition attached to it (monthly payment or not), and the per-gram or percentage charges added at closure.

How to get Muthoot's lowest rate

• Pay 100% of the interest monthly. Most lower rates on the page depend on it, it keeps the rebate, and it stops compounding.
• Know your slab. Your loan amount decides the scheme and the LTV; ask which scheme your amount falls into.
• Get both rates in writing. Ask for the rate with the monthly-payment rebate and the rate if you miss it; the loan document should show both.
• Ask fixed or floating. Repo rate changes affect floating-rate gold loans only.
• Do not over-pledge. Safe custody is Rs 5 per gram per month, so extra grams cost money.
• Check the region charges. 1% IPL service charge in southern branches vs 0.20% security charge (Rs 150 to Rs 1,000) elsewhere.
• Estimate first. Use the gold loan calculator, then compare it with the branch quote.

Rates and charges here are as listed on Muthoot Finance's website on 2 October 2026 and can change. Confirm the scheme, rate and charges in writing at the branch before you pledge.

Written and reviewed by the The Gold Rate Today editorial team. Facts checked against primary sources; see the reference above.

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