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

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.

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.

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.

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.

How do microfinance gold loans compare?

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

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.

Gold loan or personal loan?

A gold loan at NBP costs about 17.7% as of October 2026. Unsecured personal loans 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.

More guides: Loans, personal loans compared, loan apps in Pakistan, business loans, Money.