SBI Gold Loan: Interest Rate, Per-Gram Amount

An SBI gold loan costs about 8.7% to 10.1% a year as of September 2026, depending on the scheme, and State Bank of India's own page quotes rates "starting from 9.15%". Per gram, SBI can lend up to 85% of your gold's value on loans up to Rs 2.5 lakh, 80% up to Rs 5 lakh and 75% above that.

Those two numbers, the interest rate and the loan per gram, are what almost everyone searching for an SBI gold loan wants to know. The catch is that neither is fixed. The rate moves with SBI's MCLR and the scheme you choose, and the per-gram amount moves every day with the gold price and with the Reserve Bank of India's loan-to-value (LTV) rules. This guide shows the current scheme-wise rates, the RBI LTV tiers that took effect in 2026, a per-gram table you can scale to today's price, and worked examples for 22K jewellery. For your own numbers, our gold loan calculator applies the same LTV formula to the live gold rate.

SBI Gold Loan Interest Rate by Scheme (2026)

SBI offers its personal gold loan in several repayment formats. Rates below are those reported by rate trackers and lenders' comparison pages in 2026; SBI links each rate to its MCLR plus a spread, so they change whenever SBI resets MCLR. Always confirm the rate on your sanction letter.

Two practical points: bullet loans are cheaper but you must have the full amount at maturity, and interest on an EMI loan is charged on the reducing balance, so part-prepaying early genuinely reduces your cost. SBI also runs agricultural gold loans through rural branches, which follow priority-sector rules and may carry different rates and interest subvention; ask your branch if you are borrowing for crop or farm purposes.

How Much SBI Gold Loan Per Gram: The RBI LTV Rules

The per-gram amount comes from a simple formula:

Loan per gram = value of 1 gram of your gold (at its purity) x LTV ratio

For years the RBI capped the LTV on gold loans at 75% for banks. The Reserve Bank of India's consolidated gold loan directions, which apply from 1 April 2026, introduced tiers for consumption loans against gold, so smaller borrowers can get more per gram:

So the old "75% of value" rule still holds for bigger loans, while small loans get up to 85%. For bullet repayment loans the LTV is tested on the total amount due at maturity, principal plus interest, so the cash you receive upfront on a 12-month bullet loan is a little lower than on an EMI loan against the same gold.

What value does SBI put on your gold?

This is the part most rate pages skip. Banks do not use the shop price you see at a jeweller. Under RBI rules the value is based on the average closing price of 22 carat gold over the previous 30 days, or the previous day's closing price, whichever is lower, as published by the India Bullion and Jewellers Association (IBJA) or a SEBI-regulated commodity exchange. Only the gold content counts: stones, lac, wax and making charges add nothing. A 22K ornament is valued at 22K; 18K and lower purity items are valued proportionately. That is why your SBI valuation will usually be a little below the "gold rate today" headline in a rising market.

SBI Gold Loan Per Gram: Worked Table

The table below uses illustrative gold prices close to late-September 2026 levels (22K at Rs 13,700 per gram, 24K at Rs 14,950 and 18K at Rs 11,200) to show the maximum loan per gram in each tier. Replace the price column with today's rate and multiply by the LTV to get your own figure.

These are ceilings, not promises. SBI's own valuer tests purity at the branch, deducts stones and non-gold parts, and uses the RBI-prescribed reference price, so the sanctioned amount can be lower. Most household gold is 22K jewellery, so the middle row is the one that matters for most borrowers.

Examples with 22K jewellery

Note how the loan per gram steps down as the loan grows. A family pledging 40 g does not get 85% on the whole amount; because the total loan crosses Rs 2.5 lakh, the 80% cap applies.

What an SBI Gold Loan Costs You

Interest is only part of the bill. Here is what to budget for, based on SBI's charges as reported in 2026:

• Processing fee: reported at around 0.25% of the loan plus GST, with a small minimum; SBI frequently runs waivers, so check the offer at your branch or on YONO SBI.
• Valuation charge: a fee for the appraiser may be collected at the branch.
• Interest: on Rs 1 lakh at about 9.95% on EMI, the monthly instalment is roughly Rs 8,789 over 12 months (total interest about Rs 5,471), Rs 4,612 over 24 months (about Rs 10,692) or Rs 3,224 over 36 months (about Rs 16,077).
• Penal interest and auction: if a bullet loan is not closed or renewed at maturity, penal interest applies and the bank can eventually auction the gold after notice.

For a 12-month bullet loan of Rs 1 lakh at about 9%, the interest payable at maturity is in the region of Rs 9,000, which is why short bullet loans are cheapest only if you are certain of repaying on time.

Eligibility, Documents and How to Apply

SBI's gold loan is one of the easiest bank loans to get because the gold is the security:

• Who: any resident Indian aged 18 or above who owns the gold. No minimum income; credit score is looked at but is not the main test.
• What you can pledge: gold jewellery of 18K and above, and bank-sold 24K gold coins within RBI's limits (coins up to 50 g per borrower). Gold bars and bullion are not accepted.
• Documents: KYC (Aadhaar and PAN), two photographs, and the application form. Agricultural gold loans also need land records.
• How: visit a branch with the gold, or start the request on YONO SBI and complete appraisal at the branch. Disbursal is often the same day.

Getting More Per Gram and Paying Less Interest

A few choices at the branch change the outcome more than the headline rate does:

• Keep the loan inside a tier if you can. Borrowing Rs 2.4 lakh instead of Rs 2.6 lakh keeps you at 85% LTV, which means less gold has to be pledged for the same cash.
• Separate stone-heavy pieces. Kundan, polki and stone-set jewellery lose weight in valuation because only net gold counts. Plain chains, bangles and coins give the best per-gram result.
• Match the format to your cash flow. If money arrives in one lump in six months, a 6-month bullet loan is cheaper than an EMI loan. If income is monthly, the EMI format avoids a large payment at the end.
• Close or renew before maturity. Renewal on bullet loans needs the interest to be paid and fresh valuation; letting a loan run past maturity adds penal interest.
• Watch the gold price. If gold falls sharply, the bank may ask you to top up margin or repay part of the loan to bring LTV back within limits.

Getting your gold back

Once the loan and interest are fully repaid, the bank must return the pledged gold. The RBI's 2026 directions require lenders to release it promptly, within a few working days of closure, and provide for compensation to the borrower if the lender delays, so ask the branch for the release date in writing when you close the loan. Check the ornaments against the pledge list, which records the items, gross weight and net weight, before you sign the release.

SBI vs Other Gold Loan Lenders

SBI is usually among the cheapest lenders because it is a public sector bank with a low cost of funds. NBFCs such as Muthoot Finance and Manappuram Finance often disburse faster, have longer opening hours and may lend more per gram in some schemes, but their rates run noticeably higher for most schemes. Private banks such as HDFC Bank sit in between. The right choice depends on what you value more: the lowest rate (SBI and other public sector banks), or speed and flexibility (NBFCs). Whichever you pick, compare the per-gram amount, the rate, and the total repayable, not just the headline rate.

For official product details, see SBI's personal gold loan page, and confirm your per-gram figure against today's rate before you visit the branch. Rates, LTV rules and gold prices all move, so treat every number here as a planning estimate as of September 2026.

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

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