Last reviewed: 14 October 2026. Rates and charges checked against South Indian Bank’s official interest rates page, MCLR notice (PDF) and gold loan personal segment page on southindianbank.bank.in.
The South Indian Bank gold loan interest rate on its main personal scheme works out to 9.90% a year, based on the one year MCLR plus 0.45% formula on the bank’s interest rates page and the MCLR of 9.45% effective 20 September 2026. What borrowers actually paid was close to that: for general gold loans contracted in April to June 2026, the bank disclosed a mean rate of 10.38% within a range of 9.50% to 12.60%.
South Indian Bank prices most of its gold loans off its MCLR, but its gold overdrafts are linked to the repo rate at repo plus 9.05%. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% on 7 October 2026. The bank’s rate card predates the hike: its repo note still says 5.25% from 6 December 2025, and the MCLR notice is dated 20 September 2026. The overdraft’s “presently” figure of 14.55% already matches a 5.50% repo, while the 5.25% note implies 14.30%, so confirm the live rate before you draw.
South Indian Bank gold loan interest rate table
| Scheme | Pricing formula | Rate on MCLR of 20 Sep 2026 |
|---|---|---|
| Gold Loan Scheme (Personal), fixed | 1 year MCLR + 0.45%, or 3 month MCLR + 0.85% | 9.90% or 10.05% |
| Gold Max and Gold Max Agri, fixed | 6 month MCLR + 0.45% onwards | 9.70% (page shows “presently 10.05%”) |
| Gold Loan Agri, fixed | 1 year MCLR + 0.30% to + 1.65%, or 6 month MCLR + 0.50% | 9.75% to 11.10% |
| Micro Gold, fixed | 1 year MCLR + 2.65% to + 3.15% | 12.10% to 12.60% |
| Gold Power, MCLR floating | 1 year MCLR + 3.90% | 13.35% |
| Gold Power OD and Gold Loan Personal OD, floating | Repo + 9.05% onwards | 14.30% at 5.25% repo; 14.55% at 5.50% |
Rates actually charged, April to June 2026
| Category | Mean rate | Range |
|---|---|---|
| Gold loan (general) | 10.38% | 9.50% to 12.60% |
| Gold loan (agri) | 8.96% | 8.60% to 10.55% |
The two tables answer different questions. The first shows what the formulas give today; the second shows what borrowers paid last quarter. The Gold Max “presently 10.05%” label looks like it was set on an older six month MCLR, because the 20 September figure of 9.25% plus 0.45% gives 9.70%. Ask the branch which number it will apply.
Fees and charges
| Charge | South Indian Bank figure |
|---|---|
| Handling (processing) fee | ₹200 to ₹2,000 |
| Appraisal charge | From ₹150 per packet |
| GLREN charges | From ₹200, capped at 0.25% of the loan amount |
| Lost certificate or gold loan token card | ₹100 per packet |
| Foreclosure | Allowed; no charge stated on the page |
| Penal charges | Not published on the gold loan page; ask the branch |
| Loan amount | ₹5,000 to ₹1 crore |
| Tenure | Term loan up to 60 months, EMI or bullet |
What it costs: a ₹2 lakh South Indian Bank gold loan
The example assumes a ₹2 lakh Gold Loan Scheme (Personal) loan for 12 months, repaid with interest at the end and calculated on a simple annual basis. Because the handling fee is a range, we show the lowest and highest cases, each with 18% GST, plus one packet appraised at ₹150 plus GST (₹177).
| Example (₹2,00,000, 12 months) | At 9.90%, fee ₹200 | At 9.90%, fee ₹2,000 | At 10.38% mean, fee ₹200 |
|---|---|---|---|
| Interest (₹2,00,000 × rate × 12/12) | ₹19,800 | ₹19,800 | ₹20,760 |
| Handling fee + 18% GST | ₹236 | ₹2,360 | ₹236 |
| Appraisal, one packet + 18% GST | ₹177 | ₹177 | ₹177 |
| Total cost | ₹20,213 | ₹22,337 | ₹21,173 |
EMI option
South Indian Bank offers EMI repayment on gold term loans. On ₹2 lakh over 12 monthly instalments at 9.90%, using the reducing balance formula, the EMI is about ₹17,574 and total interest about ₹10,887. At the April to June mean of 10.38%, the EMI is about ₹17,619 with interest of about ₹11,423. Paying monthly roughly halves the interest bill compared with a bullet loan, because the balance falls each month.
Eligibility, documents and auction rules
- Applicants must be 18 or older and own the gold jewellery being pledged.
- Gold of 18 carat and above is accepted, subject to credit assessment and repayment capacity.
- Documents: basic KYC, gold valuation papers and the jewellery itself. A credit score check applies only to certain schemes.
- Gold is priced at the lower of the previous day’s close and the 30 day average from IBJA or a SEBI regulated commodity exchange, for its actual carat.
- Stones, beads, strings and wax are excluded from the weight.
What happens if you default
The bank’s page sets out the auction process. The reserve price must be at least 90% of the current market value of the net gold, and can drop to 85% only after two failed auctions. Overdue loans can go to auction 38 days after default if notice is delivered, or 54 days if it is not. You can redeem the gold until the working day before the auction, and any surplus from the sale is refunded within seven working days.
How the South Indian Bank gold loan interest rate compares
| Bank | Rates charged, April to June 2026 | Mean |
|---|---|---|
| South Indian Bank (general) | 9.50% to 12.60% | 10.38% |
| Federal Bank | 8.50% to 22.90% | 10.87% |
| ICICI Bank | 9.00% to 16.00% | 10.96% |
| Axis Bank | 8.95% to 19.00% | 11.29% |
On the like for like quarterly disclosures, South Indian Bank had the lowest mean and by far the narrowest range of the four, which suggests fewer borrowers end up on punitive rates. Read the detail behind Federal’s wider range in our Federal Bank gold loan guide, and every lender we track is in our gold loan interest rates table.
Checklist before you apply
- Ask which scheme you are being offered and the exact rate, not just the formula.
- Check whether the overdraft rate has moved to 14.55% after the 7 October repo hike.
- Prefer the one year MCLR option of the personal scheme (9.90%) over the three month option (10.05%) if both are offered.
- Negotiate the handling fee, which can range from ₹200 to ₹2,000.
- Count your packets: appraisal is charged per packet.
- Choose EMI repayment if you have steady income; it cuts the interest bill sharply.
- Get penal charges in writing, since the gold loan page does not list them.
Frequently asked questions
What is the South Indian Bank gold loan interest rate today?
The personal scheme works out to 9.90% on the one year MCLR formula as of the 20 September 2026 MCLR. In April to June 2026, general gold loans were contracted at 9.50% to 12.60%, with a mean of 10.38%.
Does the October 2026 repo hike affect South Indian Bank gold loans?
Only the repo linked overdrafts, priced at repo plus 9.05%, move directly with the repo rate. The MCLR based schemes change only when the bank revises its MCLR.
What fees does South Indian Bank charge on a gold loan?
A handling fee of ₹200 to ₹2,000, appraisal from ₹150 per packet and GLREN charges from ₹200 up to 0.25% of the loan, plus GST.
How much can I borrow from South Indian Bank against gold?
Between ₹5,000 and ₹1 crore, depending on the value of the gold and the scheme. RBI rules cap the loan at 85% of the gold’s value for consumption loans up to ₹2.5 lakh.
Can I close a South Indian Bank gold loan early?
Yes. The bank’s page says foreclosure is allowed and does not state a charge.
How to apply
Visit a South Indian Bank branch with your gold and KYC documents, or start with an online enquiry. Scheme details are on South Indian Bank’s official gold loan page.
This article is for informational purposes only and does not constitute financial advice. Rates and charges change; confirm with the bank before you apply.
