There are now specialised NBFCs and banks offering gold loans across cities. As per the RBI notification, both banks and NBFCs now offer a loan-to-value ratio of 75%. A quick comparison will tell you which one to go to for a gold loan:\r\rGold loan interest rate in Indian banks tends to be lower than the interest rate offered by NBFCs. Interest is even lower for public sector banks. This is so because the cost of funds in banks is lower. \rLoan disbursal is faster with NBFCs as compared to banks. An NBFC only needs your KYC document, so the documentation is less cumbersome. \rThe option of paying interest during the loan tenure and the principal loan amount at the end of the tenure is available only with NBFCs. \rNBFCs do not charge a prepayment penalty. \rSo, if you need a gold loan at a lower interest rate, a bank should be your first priority. You can do a gold loan interest rate comparison among banks to see which is the most attractive rate. On the other hand, if you need a simple and speedy loan, an NBFC should be your preferred choice. A quick gold loan comparison in both cases is always advisable.