HDFC Gold Loan Calculator
Calculate Your Loan
Trying to figure out how much a gold loan will cost you from HDFC Bank? You’re not alone. Millions of Indians tap into their gold jewellery each year to meet short‑term cash needs, and the interest rate is the first thing they want to know.
Quick takeaways
- As of October 2025, HDFC Bank’s gold loan interest rate ranges from 7.15% to 9.15% per annum, based on the loan‑to‑value (LTV) ratio and tenure.
- The rate is linked to the Reserve Bank of India’s (RBI) repo rate and the bank’s own prime lending rate.
- LTV can go up to 75% for 24‑carat gold, but most borrowers see 60‑70%.
- EMI is calculated on a reducing‑balance basis, so you pay less interest over time.
- Pre‑payment is allowed without penalty, which can shave years off the loan.
What exactly is an HDFC Bank gold loan?
HDFC Bank Gold Loan is a secured short‑term loan where the borrower pledges gold jewellery or bullion as collateral. The bank assesses the purity and market value of the gold, then releases a percentage of that value as cash. Because the loan is backed by a tangible asset, approval is usually quick-often within a few hours-and the credit check is less stringent than for unsecured personal loans.
How does the interest rate get set?
The headline rate you see on the website is not a flat figure. It’s a band that moves with three key benchmarks:
- Reserve Bank of India (RBI)’s repo rate - the cost at which banks borrow from the central bank.
- The bank’s Prime Lending Rate (PLR) - the base rate HDFC uses for all its loans.
- The Loan‑to‑Value (LTV) Ratio - higher LTV means a higher risk, so the rate nudges upward.
When the RBI repo rate is 6.5% (the current figure in 2025), HDFC adds its PLR margin of roughly 1.0% and an LTV premium that can range from 0.5% to 2.0%, landing you between 7.15% and 9.15% APR.
Breaking down the numbers: a step‑by‑step example
Let’s say you pledge 10 grams of 24‑carat gold. At today’s market price of ₹5,200 per gram, the gold is worth ₹52,000. With a 70% LTV, HDFC would disburse ₹36,400.
Assume you pick a 12‑month tenure and the bank applies an 8.15% annual interest rate. Using a reducing‑balance method, the EMI works out to roughly ₹3,210. Over a year you’ll pay about ₹2,520 in interest.
Want to see the math for yourself? Plug the numbers into any gold‑loan calculator and you’ll get the same figure.
Key factors that can change your rate
- Gold purity: 24‑carat gets the best LTV; 22‑carat may reduce the LTV by a couple of points.
- Tenure: Shorter tenures (3‑6 months) often carry a slightly lower rate because the bank’s exposure time is less.
- Repayment behavior: If you have an existing loan with HDFC and a clean repayment record, the bank may offer you a preferential rate.
- Market conditions: A rise in the RBI repo rate will push the gold loan rate up within days.
How HDFC’s gold loan stacks up against other Indian banks
| Bank | Interest Rate (APR) | Max LTV | Min Loan Amount | Typical Tenure |
|---|---|---|---|---|
| HDFC Bank | 7.15% - 9.15% | 70% (24‑carat) | ₹10,000 | 3‑12 months |
| SBI Gold Loan | 7.50% - 9.75% | 65% (24‑carat) | ₹5,000 | 3‑24 months |
| ICICI Bank | 7.90% - 10.25% | 68% (24‑carat) | ₹10,000 | 6‑12 months |
| Axis Bank | 8.00% - 10.00% | 65% (24‑carat) | ₹15,000 | 3‑12 months |
Notice how HDFC sits near the low end of the range, especially for short‑term loans. If you’re sensitive to cost, that edge can translate into a few hundred rupees saved over the life of the loan.
Applying for a gold loan at HDFC - what to expect
- Visit a branch or use the mobile app. Upload clear photos of the gold, its weight, and purity certificate.
- Instant valuation. HDFC’s Gold Valuation engine checks current market prices.
- Receive a loan offer. The offer displays the amount, LTV, interest rate, and repayment schedule.
- Accept and disburse. Sign the agreement, hand over the gold (or keep it safely if you’re using the app‑only model), and get funds within minutes.
- Repayment. Set up auto‑debit for the EMI or use the app to pay manually. Early repayment is allowed without penalty.
The whole process can be completed in under two hours if you have the paperwork ready.
Common pitfalls and how to avoid them
- Ignoring the LTV impact. Borrowing the maximum 75% LTV may feel tempting, but it raises the interest band. Aim for 60‑65% if you can manage a slightly larger cash outflow.
- Missing the repayment date. A missed EMI triggers a higher penalty and can affect your credit score.
- Not checking gold purity. Some dealers sell 22‑carat jewellery at 24‑carat prices, which reduces the loan amount you could get.
- Over‑relying on the loan. Gold loans are great for short‑term needs like medical emergencies or school fees, but they’re not a substitute for long‑term financing.
FAQs
What is the minimum gold weight required for an HDFC gold loan?
The bank accepts gold as low as 5 grams, but most branches prefer 10 grams or more to keep paperwork simple.
Can I use broken jewellery or gold bars?
Yes. HDFC evaluates any form of gold-chains, bangles, coins, or bars-provided you can prove its purity with a certificate or a reliable assay.
Is the interest rate fixed for the whole tenure?
The rate is fixed at the time of disbursement. Even if the RBI repo rate changes later, your EMI stays the same.
What happens if I default on the loan?
HDFC will first sell the pledged gold through an auction channel. Any shortfall after recovering the loan amount and penalties will be pursued through legal means.
Can I increase the loan amount after the first disbursement?
Yes, provided the gold’s value has risen or you add more collateral. The bank will re‑value the gold and adjust the LTV accordingly.
Bottom line
If you need cash fast and have pure gold to pledge, HDFC Bank’s gold loan remains one of the cheaper options in the Indian market. The rate hovers between 7.15% and 9.15% APR, tied to RBI’s macro policy, and the loan‑to‑value ratio determines where you land in that band. Use the calculator, compare with peers, and keep an eye on the tenure you choose-shorter tenures usually cost less overall.
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