Personal loan and gold loan are popular loan options as they both are easy to avail. They both come with their own set of features and benefits. Your equated monthly instalment (EMI) outgo for any loans is determined on the basis of the interest rate on the loan. When it comes to interest rates, you may find gold loan cheaper than a personal loan. Your choice of loan product would depend on your borrowing requirement.
When it comes to gold loans, you can normally borrow 75% as the loan-to-value (LTV) ratio of your pledged gold. The government has temporarily increased the LTV on gold loans to 90% till March 31, 2021. However, if are short of gold and your loan requirement is higher, a personal loan may be better for you.
Before choosing an option for yourself, make sure to compare both in terms of interest rates, processing fees, prepayment charges, etc. Take a look at the latest personal loan and gold loan interest rates offered by top 15 banks in India. Also, check the estimated EMI you would be required to pay for a loan of Rs. 5 lakh for 3 year tenure.
Personal Loan Vs Gold Loan (Interest Rates and EMI)
EMI on Personal Loan and Gold Loan of Rs. 5 Lakh for 3 year Tenure
EMI (in Rs)
EMI (In Rs)
Union Bank of India
Punjab National Bank
State Bank of India
Bank of Maharashtra
Bank of Baroda
Indian Overseas Bank
Punjab & Sind Bank
Bank of India
Data compiled by BankBazaar.com from respective bank’s website as on 22 Oct 2020. Need help in calculating your EMI? Use BankBazaar’s easy Personal Loan EMI calculator.
Disclaimer: Interest rate on Personal Loan for all listed (BSE) Public & Pvt Banks considered for data compilation and Gold loan interest for such banks is considered for a comparison. Banks for which data is not available on their website, are not considered. Top 15 Banks with lowest personal loan interest are listed in ascending order i.e. bank offering lowest interest rate on Personal loan is placed at top and highest at the bottom. EMI is calculated on the basis of Interest rate mentioned in the table for Rs. 5 lakh Loan with tenure of 3 years (processing and other charges are assumed to be zero for EMI calculation); Interest and charges mentioned in the table is indicative and it may vary depending on bank’s terms and conditions.