Banks have raised their credit growth guidance for the current financial year on the back of GST rate cuts in late September, lower interest rates post 100 basis points (bps) repo cut, and the easing of banking regulations by the central bank, among other factors.The country’s largest lender State Bank of India (SBI) noted that the various “banking reforms” undertaken by the Reserve Bank of India (RBI) in the last monetary policy committee meeting are credit accretive. “At industry level, we must see 1 per ...

Core Insights - Gold loans provide a convenient solution for various financial needs, including education, business expansion, personal or medical costs, and home renovations, with minimal paperwork and quick access to cash [2][11] How Gold Loans Work - Gold loans involve pledging gold jewelry in exchange for funds, with the loan amount determined by the purity and weight of the jewelry [3][11] - Interest rates on gold loans vary based on the lender, borrower's profile, loan amount, tenure, and repayment option [3][11] Interest Rates - As of October 2025, interest rates for gold loans from various banks and financial institutions are as follows: - State Bank of India: 10.00% - Union Bank of India: 9.65% - Punjab National Bank: 8.35% - HDFC Bank: 9.30% - Muthoot Finance: 22.00% [4] Eligible Items for Pledge - Only specific gold items are accepted for loans, typically gold ornaments with a purity between 18 and 22 karats, and bank-minted coins of 24 karats weighing up to 50 grams [6][11] - Items such as hair pins, cufflinks, gold watches, and imitation jewelry are generally not accepted [6][11] Loan Amount Determination - The loan amount is based on the purity of gold (measured in karats) and net weight, with loans not offered against primary gold like 24-carat bars [9][11] Repayment Options - Various repayment options are available, including: - Paying interest as EMI and principal later - Making partial payments - Bullet repayment - Regular EMI option - Partial prepayment - Prepaying interest upfront [10][11] Market Considerations - Borrowers are advised to check the current market value of their gold and consider lenders offering low interest rates and flexible repayment options [9][11]