Gold Loans in Pakistan (2025 Guide)
1. Introduction
In Pakistan’s economic landscape, gold remains a common form of savings. Instead of selling your ornaments, banks offer gold-backed loans, allowing you to borrow cash against pledged gold at competitive rates. Whether you need short-term cash or a low-cost loan, this guide covers gold loan interest rates in Pakistan, how to calculate your loan, top banks (NBP, Meezan, HBL, JS), and online calculator tools.
2. What Is a Gold Loan?
A gold loan is a secured financing product where borrowers pledge their gold jewelry or bullion as collateral to receive a cash loan. Key benefits include:
- Quick approval and minimal documentation
- No credit history required
- Flexible repayment terms
This kind of loan against gold in Pakistan offers liquidity with lower interest than many consumer loans.
3. Interest Rates & Bank Comparison
A. National Bank of Pakistan (NBP)
NBP offers Cash ‘n Gold running finance up to PKR 7 million. Features include:
- Markup Rate: 1‑Year KIBOR + 4.5% (4.0% for women)
- Tenure: up to 3 years, renewable
- Processing Fee: PKR 1,500 (excluding FED)
- Eligibility: Ages 18–60 for salaried, up to 65 for self-employed
B. JS Bank GoldFinance
JS Bank’s JS GoldFinance provides term and running financing:
- Loan amount: PKR 50,000 to 25 million (up to 70% of gold value)
- Markup Rates: Term: 1-Year KIBOR + 8–12% depending on tier
- Tenure: 1–4 years (individual), up to 5 years for small enterprises
C. Karsaz Gold Loan (UBL Microfinance / U Bank)
- Loan up to PKR 1M
- No guarantor
- Tenure up to 2 years
- Markup likely around 20–23% flat rate based on microfinance pricing
D. Khushhali Bank Gold Loans
Khushhali offers Gold Bullet loans, microfinance-style:
- Small amounts (PKR 25,000–150,000) for 3–12 months
- APR ~28%
4. Gold Loan Calculator & Example
Use online calculators like NBP gold loan calculator or bank tools to estimate financing. Example:
- Loan amount: PKR 500,000
- Gold pledged: 10 grams (24K valued at 80% of market)
- Tenure: 12 months
- Estimated markup: 14% annually
- EMI or bullet repayment options available
A calculator helps compare schemes and determine affordability.
5. Comparing Features & Banks
| Bank / Scheme | Loan Limit | Markup Rate | Tenure | Processing Fee |
|---|---|---|---|---|
| NBP Cash ‘n Gold | Up to PKR 7M | KIBOR + 4.5% (women: +4%) | 1–3 years | PKR 1,500 |
| JS Bank GoldFinance | Up to PKR 25M | KIBOR + 8–12% | Up to 4–5 yrs | Min PKR 4,500 |
| U Bank / Karsaz Gold Loan | Up to PKR 1M | ~20–23% flat | Up to 2 yrs | Bank-specific |
| Khushhali Gold-Bullet | PKR 25K–150K | ~28% APR | 3–12 months | 1–2% of loan amount |
6. Eligibility & Requirements
- Valid CNIC/NICOP
- Owner of pledged gold (21–24 karat)
- No minimum income required for most banks, but they assess repayment capacity
- Age range: 18–65 years (varies by bank)
7. Step-by-Step Application Process
- Visit nearest branch or use online banking portal
- Submit gold for valuation by approved Shroff/jeweler
- Apply and submit CNIC, photo, income proof (if required)
- Review by bank and loan approval
- Disbursement directly in account or cash
- Repayment options: EMI or bullet
8. Interest-Free or Lower Rate Options
While completely interest-free gold loans are rare, microfinance providers like Akhuwat offer interest-free or low-cost small loans (including housing loans or enterprise loans), but typically not gold-backed.
9. FAQs – Gold Loan Pakistan
Q1: What is the interest rate on gold loan in Pakistan?
Rates vary between KIBOR + 4% to +12%, depending on the bank, customer, and tenure. Expect APRs from 14% flat to 28% for small bullet loans.
Q2: Which bank is best for gold loan in Pakistan?
Best options depend on loan size:
- For high amount: NBP (up to PKR 7M) or JS Bank
- For quick small loan: Khushhali Gold Bullet
Q3: Can I get a gold loan online in Pakistan?
Major banks may allow online application or branch request; full process includes face‑to‑face gold valuation, so online-only disbursal is limited.
Q4: Can I repay before term ends? Any charges?
Yes. Prepayment is allowed at most banks but may carry early settlement fees (~2–4% of outstanding) depending on bank policy.
Q5: Will gold loan affect my credit history?
Mostly no, unless borrower defaults. Most gold loans lack credit history checks but banks may still report defaults to SCRA.
✅ Final Advice
Gold loans can be a fast and convenient way to access cash without selling your assets. Before committing:
- Compare markup rates and processing fees across NBP, JS Bank, U Bank, and Khushhali
- Use a gold loan calculator to estimate EMIs or total cost
- Read terms—especially around tenure, early repayment, and insurance
- Always retain receipts and understand valuation method
📌 References
- NBP “Cash ‘n Gold” finance details (National Bank of Pakistan, mftransparency.org, JS Bank)
- JS Bank GoldFinance product description (JS Bank)
- U Bank Karsaz Gold Loan info (U Bank)
- Khushhali Bank Gold-Bullet APR & terms (mftransparency.org)
- Akhuwat Foundation interest-free loan operations (Wikipedia)
