What you need to know
Banks usually offer cheaper gold loans; NBFCs specialise in speed and flexibility. Since April 2026 both follow the same RBI rules on LTV, valuation, release and auction.
Comparison
| Lender type | Lenders tracked | Range of starting rates |
|---|---|---|
| Public sector bank | 3 | 8.50% – 9.15% |
| Private sector bank | 2 | 9.10% – 9.75% |
| NBFC | 3 | 9.00% – 9.90% |
Which to choose
- Need the lowest cost and can wait a day → PSU bank.
- Need money in minutes or a very small loan → NBFC.
- Need a revolving limit → bank or NBFC overdraft.
Frequently asked questions
Are NBFC gold loans insured by DICGC?
DICGC insures deposits, not loans. Your gold’s safety depends on the lender’s custody and insurance.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.