# Gold loan in Pakistan: which banks lend against gold, rates and limits

URL: https://which.pk/money/guides/gold-loan-pakistan/
Author: Ahtisham
Updated: 17 Oct 2026

## Summary

As of October 2026, the cheapest published gold loan in Pakistan is NBP's Cash n Gold at 1-year KIBOR + 5%, about 17.7% a year, with Rs 225,000 per 10 grams of net gold, up to Rs 7 million and no early repayment charge. JS Bank and BankIslami lend up to 70% of the gold's value but don't publish their spread; BankIslami's version is Shariah-compliant. Microfinance banks charge about 38% to 51% on small loans. HBL and MCB list no gold loan.

## Key facts

- NBP markup: 1-year KIBOR + 5% (about 17.7%)
- NBP per 10 g net gold: Rs 225,000
- JS Bank, BankIslami: Up to 70% of gold value
- Microfinance, small loans: About 38% to 51% a year

The cheapest published gold loan in Pakistan is **NBP's Cash n Gold**, at **1-year KIBOR + 5%**, about **17.7% a year** as of October 2026. NBP lends **Rs 225,000 per 10 grams** of pure gold in your jewellery, up to Rs 7 million, with no charge for repaying early. JS Bank and BankIslami lend up to **70%** of your gold's value but don't publish their markup. Microfinance banks quote about **38% to 51%** on small loans in their 2026 price sheets.

**20 grams of pure gold at NBP:** Rs 450,000 loan, about Rs 79,830 markup a year (Our estimate at 1-year KIBOR + 5%, using SBP's 12.74% KIBOR offer rate of 14 Oct 2026. Women pay KIBOR + 4.5%, about Rs 77,580. NBP doesn't say which day's KIBOR it uses.)

## Which banks give a gold loan in Pakistan?

We checked the banks people search for. As of 17 October 2026, three banks publish a gold loan on their websites, and several microfinance banks run their own. NBP's pages carry no date other than a 2018 copyright line, so we date its terms by when we read them.

| | NBP Cash n Gold | JS Gold Finance | BankIslami Gold-Based Financing |
|---|---|---|---|
| Markup a year | 1-year KIBOR + 5% (women + 4.5%) | KIBOR-linked, not published | 1-year KIBOR + spread, in offer letter |
| How much | Rs 225,000 per 10 g of pure gold | Up to 70% of gold value | Up to 70% of net gold value |
| Loan size | Rs 50,000 to Rs 7 million | Rs 50,000 to Rs 2.5 million | Rs 250,000 to Rs 5 million |
| Tenure | 1 or 3 years, can roll over | 12 to 48 months (running finance 1 to 3 years) | 1 to 4 years |
| Repayment | Markup quarterly or yearly, principal at the end | Monthly, or quarterly markup with principal at the end | Monthly instalments |
| Gold accepted | Ornaments, valued as 24-karat pure content | 21 karat and above | 21 karat and above |
| Early repayment | Free | 5.16% in year 1, 3.36% in year 2, 2.4% in year 3 | Not published |
| Age | 18 to 60 at maturity if salaried, 18 to 65 if self-employed | 18 to 65 | Not stated |

**KIBOR** is the Karachi Interbank Offered Rate, the benchmark banks add their margin to. On 14 October 2026, SBP's 1-year KIBOR offer rate was **12.74%**, so NBP's rate came to about 17.74% (17.24% for women). It moves when KIBOR moves.

NBP also runs **Sunehri Sahulat**, a running finance against gold with the same rate and limit per 10 grams, for needs such as education, marriage or medical bills. On 4 June 2025 NBP said its outstanding loans secured against gold, in farm and consumer lending, had passed **Rs 100 billion** across more than 173,000 borrowers.

**What about HBL, MCB and Meezan?:** On 17 October 2026, HBL's loans page listed CarLoan, PersonalLoan and ReadyCash, and MCB's consumer loans menu had no gold product. We found no gold financing from Meezan Bank: its pages we tried didn't load properly, and search showed no product. Bank Alfalah, Faysal Bank, Askari Bank and HBL Microfinance Bank blocked our requests, so we couldn't check them.

## How much gold loan can I get per tola?

NBP counts only the **pure gold** in your jewellery, by weight and fineness, and pays a fixed Rs 225,000 per 10 grams. A tola is 11.664 grams, so that is about:

- **Rs 262,000** per tola of 24-karat gold
- **Rs 240,000** per tola of 22-karat jewellery (about 91.6% gold)

JS Bank and BankIslami lend **up to 70%** of the gold's value instead. On 14 October 2026 the All Pakistan Sarafa Gems and Jewellers Association rate for 24-karat gold was **Rs 375,373 per 10 grams**, The Nation reported, so 70% of 20 grams of pure gold would be about Rs 525,500. Banks value your gold themselves, so treat this as a ceiling, not a quote.

NBP's figure is about 60% of that day's 24-karat rate. It is fixed in rupees, so it doesn't rise when gold rises.

## What does a gold loan cost?

Besides markup, you pay one-off charges. As of October 2026:

- **NBP:** processing fee of 0.2% of the loan, at least Rs 1,500 and at most Rs 5,000, plus FED (federal excise duty, a tax on bank fees). Sunehri Sahulat's minimum is Rs 2,000. The goldsmith's valuation and documentation are charged at actual cost. NBP insures the gold for free.
- **JS Bank** (July to December 2026 schedule): processing fee from Rs 6,000 up to Rs 250,000 borrowed, Rs 9,500 up to Rs 499,999 and Rs 18,500 up to Rs 999,999, plus FED. Women, senior citizens and persons with disability get 50% off. Renewal is Rs 4,800, and goldsmith valuation is charged per gram.
- **BankIslami:** its page lists **mandatory Takaful** (Islamic insurance) on the ornaments, with life Takaful optional. It doesn't list the processing fee.

JS Bank's schedule also lists a **2% prompt payment bonus** built into its pricing if you pay on time, and late payment at your markup rate plus 2% a year.

## Is there an Islamic gold loan in Pakistan?

Yes. **BankIslami's Gold-Based Financing** is based on **Tawarruq**, a sale-based Islamic structure, with Shariah-compliant mutual fund units as the underlying asset. The bank's Shariah Board approved it.

It is not free. The profit rate is **1-year KIBOR plus a spread** set in your offer letter. Late payments go to a charity fund instead of the bank's income. You need a minimum net disposable income of **Rs 50,000**, as BankIslami puts it, and the money should go to needs such as medical bills, education, marriage or paying off a conventional loan.

We found no gold product at Meezan Bank. For other Islamic options, see [Islamic vs conventional banking](/money/guides/islamic-vs-conventional-banking/).

## How do microfinance gold loans compare?

Microfinance banks lend smaller amounts against gold, at much higher rates.

| | Loan size | Rate a year | Valid from |
|---|---|---|---|
| U Bank Karsaz Gold Loan, lump sum | Rs 50,000 to Rs 350,000 | 43% to 45% | 1 Feb 2026 |
| U Bank Karsaz Gold Loan, monthly | Rs 50,000 to Rs 350,000 | 28% to 30% flat (48% to 51% effective) | 1 Feb 2026 |
| Mobilink Bank Fori Cash Loan (Gold) | Rs 25,000 to Rs 500,000 | 38% to 39% flat | 15 Jun 2026 |

A **flat** rate is charged on the full loan for the whole term, even as you repay it, so it costs much more than the same figure on a reducing balance. U Bank prints both, which is why its 28% flat becomes about 48% effective.

U Bank's Karsaz page gives a wider range, Rs 50,000 to Rs 1 million over 3 to 24 months; we use its February 2026 price sheet for the rates above. The loan is open to business people, salaried people, pensioners and housewives aged 18 to 68, and accepts ornaments, bullion and gold biscuits.

## How does a gold loan work?

Of the three banks, only BankIslami asks for a minimum income. NBP still sets your limit by your repayment capacity, and JS Bank wants a satisfactory credit history. At NBP you apply through the Branch Manager or Operations Manager at any authorised branch.

## What happens if gold prices fall or I don't repay?

NBP's key fact statement says that if gold prices fall and your gold no longer covers the loan, the bank sends a notice asking you to **pay down the loan or add more gold**. If you don't, it sells the gold.

If you default, NBP can auction the ornaments, adjust the proceeds against what you owe and credit any balance to your account. Withholding tax on the auction comes out of the proceeds. Anything left unpaid is reported to **e-CIB**, SBP's credit bureau. JS Bank's key fact statement also says it will auction the gold and may take legal action.

**Keep your nominee details up to date:** If a borrower dies, NBP hands the ornaments to the nominee named when the loan was taken, once the loan is paid off.

## Gold loan or personal loan?

A gold loan at NBP costs about 17.7% as of October 2026. Unsecured [personal loans](/money/guides/personal-loan-pakistan/) at big banks cost roughly 20% to 36% as of October 2026, and most banks want you salaried. If you'd rather keep gold as a saving than borrow against it, see [is gold a good investment in Pakistan](/money/guides/gold-investment-pakistan/).

More guides: [Loans](/money/loans/), [personal loans compared](/money/guides/personal-loan-pakistan/), [loan apps in Pakistan](/money/guides/loan-apps-pakistan/), [business loans](/money/guides/business-loan-pakistan/), [Money](/money/).

## Questions people ask

### Does HBL give a gold loan?

Not that we could find. On 17 October 2026 HBL's personal loans page listed CarLoan, PersonalLoan and ReadyCash, and no gold loan. MCB's consumer loans menu had none either.

### Which bank is best for a gold loan in Pakistan?

On published rates, NBP: 1-year KIBOR + 5% (about 17.7% in October 2026), Rs 225,000 per 10 grams of net gold and no early repayment charge. JS Bank and BankIslami lend up to 70% of the gold's value but don't publish their markup.

### Is there a gold loan without interest in Pakistan?

Not from the banks we checked. BankIslami's Gold-Based Financing is Shariah-compliant (Tawarruq), but its profit rate is still 1-year KIBOR plus a spread, set in your offer letter.

### How much loan can I get per tola of gold?

At NBP, Rs 225,000 per 10 grams of pure gold content, which works out to about Rs 262,000 per tola of 24-karat gold or about Rs 240,000 per tola of 22-karat jewellery. JS Bank and BankIslami lend up to 70% of the gold's value.

### What happens if I can't repay a gold loan?

The bank sells your gold at auction. NBP's key fact statement says it adjusts the proceeds against what you owe, credits any balance to your account, and reports any shortfall to SBP's credit bureau.

## Sources

- [Cash n Gold: FAQ](https://www.nbp.com.pk/CashnGold/GoldLoan_FAQ.aspx), National Bank of Pakistan (accessed 17 Oct 2026)
- [Cash n Gold: Product Features](https://www.nbp.com.pk/CashnGold/GoldLoan_Temrs.aspx), National Bank of Pakistan (accessed 17 Oct 2026)
- [Product Key Fact Statement: Cash n Gold](https://www.nbp.com.pk/CashnGold/docs/PKFSCashn-Gold-180826.pdf), National Bank of Pakistan (accessed 17 Oct 2026)
- [Sunehri Sahulat: FAQ](https://www.nbp.com.pk/CashnGold/SunehriLoan_FAQ.aspx), National Bank of Pakistan (accessed 17 Oct 2026)
- [National Bank of Pakistan Surpasses PKR 100 Billion Financing (4 Jun 2025)](https://nbp.com.pk/PRESS-RELEASE/National_Bank_of_Pakistan_Surpasses_PKR_100_Billion_Financing.pdf), National Bank of Pakistan (accessed 17 Oct 2026)
- [JS Gold Finance](https://www.jsbl.com/personal/consumer-finance/js-goldfinance/), JS Bank (accessed 17 Oct 2026)
- [Schedule of Charges, July to December 2026](https://www.jsbl.com/wp-content/uploads/2026/05/Schedule-of-Charges-July-to-December-2026-English.pdf), JS Bank (accessed 17 Oct 2026)
- [JS Gold Finance Product Key Fact Statement](https://www.jsbl.com/wp-content/uploads/2026/06/JS-GOLD-Finance-KFS-Bilingual.pdf), JS Bank (accessed 17 Oct 2026)
- [Gold-Based Financing](https://bankislami.com.pk/gold-based_financing/), BankIslami (accessed 17 Oct 2026)
- [Asset conventional products pricing, effective 1 Feb 2026](https://ubank.com.pk/wp-content/uploads/2026/02/Asset-Conventional-Products-Pricing-As-of-01-02-26-1.pdf), U Microfinance Bank (accessed 17 Oct 2026)
- [Karsaz Gold Loan](https://ubank.com.pk/karsaz-gold-loan/), U Microfinance Bank (accessed 17 Oct 2026)
- [Lending products pricing structure, 15 June 2026](https://mobilinkbank.com/assets/documents/Product-Pricing-Lending-Final-after-Oct-ALCO.pdf), Mobilink Microfinance Bank (accessed 17 Oct 2026)
- [HBL personal loans](https://www.hbl.com/personal/loans), HBL (accessed 17 Oct 2026)
- [MCB consumer loans](https://www.mcb.com.pk/personal/consumer-loans), MCB Bank (accessed 17 Oct 2026)
- [KIBOR, 14 Oct 2026](https://www.sbp.org.pk/assets/document/kibor-rates-14-october-2026.pdf), State Bank of Pakistan (accessed 15 Oct 2026)
- [Gold prices fall by Rs3,000 per tola (14 Oct 2026)](https://www.nation.com.pk/14-Oct-2026/gold-prices-fall-rs3-000-per-tola), The Nation (APP) (accessed 15 Oct 2026)