A gold loan in Nepal is a secured loan where you pledge gold jewellery or bullion and receive instant cash — typically 75% of the gold's market value. Interest rates range from 9% to 14% per annum, lower than unsecured personal loans, because the loan is fully backed by collateral. No salary slips or income proof are required.
📌 NRB Gold Loan Guidelines (2082/83)
Nepal Rastra Bank (NRB) mandates a maximum Loan-to-Value (LTV) ratio of 75% for gold loans. Banks may not lend more than 75% of the gold's current market value. The gold is held in the bank's vault until full repayment. Borrowers receive their gold back only upon clearing the principal and all accrued interest.
Gold Loan Interest Rates by Bank Type
Indicative Gold Loan Rates — Nepal 2082/83
Updated Ashadh 2083| Bank Type | Interest Rate (p.a.) | LTV | Tenure |
|---|---|---|---|
| Commercial Banks | 9.00–11.50% | Up to 75% | 6–12 months |
| Development Banks | 10.00–13.00% | Up to 75% | 6–12 months |
| Finance Companies | 11.00–14.00% | Up to 70% | 3–12 months |
How Is Gold Loan Interest Calculated?
Gold loan interest in Nepal is calculated as: Base Rate + Product Spread. For example, if a bank's base rate is 5.00% and it adds a 4.50% spread on gold loans, you pay 9.50% per annum. With the NRB policy rate at 5.75%, most commercial banks' base rates sit between 4.00% and 6.50%, putting gold loan rates in the 9–12% range for commercial banks.
Gold Loan Interest Example (NPR 5 Lakh, 1 Year)
| Gold Value | Loan Amount (75%) | Rate | Annual Interest | Monthly EMI |
|---|---|---|---|---|
| NPR 5,00,000 | NPR 3,75,000 | 9.00% | NPR 33,750 | NPR 3,281 |
| NPR 5,00,000 | NPR 3,75,000 | 11.00% | NPR 41,250 | NPR 3,438 |
| NPR 5,00,000 | NPR 3,75,000 | 13.00% | NPR 48,750 | NPR 3,594 |
How to Apply for a Gold Loan in Nepal
- Gather your gold Bring your gold jewellery (minimum 10 grams, 18-karat or higher) or gold coins/bars to the bank branch.
- Carry your citizenship A valid Nepali citizenship certificate (राष्ट्रिय परिचयपत्र) is the only document required. No income proof needed.
- Bank values your gold The bank's in-house goldsmith assesses the purity and weight of your gold and calculates its current market value.
- Loan offer The bank offers up to 75% of the assessed gold value as the loan amount, at the gold loan interest rate.
- Sign and collect Sign the loan agreement and receive the cash — usually the same day, sometimes within 2 hours.
- Repay and reclaim Repay the principal plus interest (monthly or at end of tenure). Your gold is returned to you upon full repayment.
Gold Loan vs Other Loan Types in Nepal
| Feature | Gold Loan | Personal Loan | Home Loan |
|---|---|---|---|
| Interest rate | 9–14% | 12–20% | 9–13% |
| Income proof | ❌ Not required | ✅ Required | ✅ Required |
| Disbursement | Same day | 2–7 days | 7–30 days |
| Collateral | Gold only | None | Property |
| Max amount | 75% of gold value | Up to 15× salary | Up to 50–80% property value |
| Minimum tenure | 3 months | 12 months | 5 years |
Frequently Asked Questions — Gold Loan Nepal
What is a gold loan in Nepal?
A gold loan in Nepal is a secured loan where you pledge your gold jewellery or bullion to a bank or finance company and receive cash. The bank holds the gold as collateral and returns it when you repay the loan. No income proof is required — the loan amount depends only on the value of your gold.
What is the interest rate for a gold loan in Nepal?
Gold loan interest rates in Nepal typically range from 9% to 14% per annum, calculated as the bank's base rate plus a spread of 2–5%. Commercial banks tend to offer lower rates (9–11%) while development banks and finance companies may charge 11–14%. The exact rate depends on the bank's base rate and product policy.
How much gold loan can I get in Nepal?
Nepal Rastra Bank (NRB) allows banks to lend up to 75% of the market value of gold (LTV ratio). If your gold is worth NPR 1,00,000, you can borrow up to NPR 75,000. The gold is valued at the current market price on the day of disbursement.
What is the minimum gold required for a gold loan in Nepal?
Most Nepali banks require a minimum of 10 grams of gold (hallmarked or bank-appraised) to sanction a gold loan. The gold must be 18-karat or higher. Gold coins and gold bars issued by Nepal Rastra Bank or authorised dealers are also accepted by most banks.
How quickly is a gold loan disbursed in Nepal?
Gold loans in Nepal are typically disbursed on the same day or within 24 hours of submitting the application. The quick turnaround is possible because no income verification or credit check is needed — only the gold valuation matters.
Do I need income proof for a gold loan in Nepal?
No. Unlike home loans or personal loans, gold loans do not require income proof, salary slips, or a credit score. You only need a valid citizenship certificate and the gold jewellery or bullion. This makes gold loans accessible even to informal-sector workers and small business owners.
What happens if I cannot repay the gold loan?
If you default on repayment, the bank has the right to auction your pledged gold to recover the outstanding loan amount and interest. This is why gold loans carry lower interest rates than unsecured personal loans — the bank's risk is fully covered by the collateral.
Can I renew a gold loan in Nepal?
Yes. Most banks allow gold loan renewal (rollover) at the end of the tenure by paying the outstanding interest. The principal can be rolled over for another term, typically 6 months to 1 year, subject to re-evaluation of gold value and the bank's policy at the time of renewal.
Which bank is best for gold loan in Nepal?
Commercial banks generally offer the lowest gold loan rates in Nepal since they have lower base rates. Rastriya Banijya Bank, Nepal Investment Mega Bank, and Standard Chartered Bank currently have the lowest base rates, which translates to more competitive gold loan pricing. Compare current base rates on Byajdar's base rate page.