Gold Loans in Dubai – Banks, Rates, and How to Apply in 2025
Need quick cash in Dubai? A gold loan lets you borrow against your gold jewellery or bars at low interest rates. This guide covers which UAE banks offer gold loans, typical rates, LTV ratios, and the application process.
What Is a Gold Loan?
A gold loan (also called a gold-secured loan or gold pledge loan) allows you to borrow money using your gold jewellery or bullion as collateral. You hand over your gold to the lender, receive cash (typically 60–80% of the gold's current market value), and repay the loan plus interest over an agreed period. Once fully repaid, your gold is returned in the same condition.
Gold loans in Dubai are popular among residents who need short-term liquidity without selling their gold permanently — a practical solution particularly common among Indian, Pakistani, and Filipino communities for whom family gold represents both personal wealth and emotional heritage.
Which UAE Banks and Lenders Offer Gold Loans?
| Lender | Max LTV | Interest Rate (p.a.) | Max Tenor |
|---|---|---|---|
| Emirates NBD | 75% | 7–10% | 12 months |
| Abu Dhabi Commercial Bank (ADCB) | 70% | 8–11% | 12 months |
| First Abu Dhabi Bank (FAB) | 75% | 7–9% | 12 months |
| Dubai Islamic Bank (Sharia) | 70% | Islamic profit rate | 12 months |
| Muthoot Finance UAE | 80% | 12–18% | 6–12 months |
Rates and terms are indicative for 2025. Always confirm directly with the lender as terms change frequently.
How the Loan-to-Value (LTV) Ratio Works
If your gold jewellery is valued at AED 30,000 and the lender's LTV is 75%, you can borrow up to AED 22,500. The remaining AED 7,500 is the lender's buffer against gold price fluctuations. If gold prices drop significantly during the loan period and the value falls near your loan amount, the lender may issue a margin call — requesting additional gold or partial repayment.
Documents Required for a Gold Loan in Dubai
- Valid Emirates ID (for UAE residents) or passport + visa (for some lenders)
- Recent UAE salary certificate or bank statement (some lenders require proof of income; others do not for secured gold loans)
- The gold to be pledged (brought to the branch for valuation)
- Original purchase receipt (helps establish provenance, though not always mandatory)
How Gold Valuation Works
When you bring gold to a bank for a loan, their trained valuer:
- Tests the purity using an XRF scanner or acid test.
- Weighs the piece precisely (deducting any non-gold components like stones).
- Calculates the gold value using the current market rate (typically the DGJG rate or the LBMA fix).
- Applies the LTV ratio to determine your loan amount.
Banks are conservative — they often apply a small additional discount to the DGJG rate (5–10%) to provide extra buffer. This means the effective LTV you experience is sometimes lower than the headline figure.
Islamic Gold Financing in Dubai
Sharia-compliant alternatives to conventional gold loans are available through UAE Islamic banks. These typically use a structure called Qard al-Hasan (benevolent loan) or a commodity murabaha structure. The bank holds your gold, provides a fee-based financing facility rather than charging interest, and returns the gold upon full settlement. Dubai Islamic Bank and Abu Dhabi Islamic Bank both offer compliant versions.
Gold Loan vs Selling Gold: Which Is Better?
- Choose a gold loan if: You need short-term cash but believe gold prices will rise (or stay stable), or the gold has sentimental value you don't want to permanently lose.
- Choose to sell if: You need cash urgently with no certain repayment timeline, or you believe gold prices may fall, making the loan less favourable.
- Key advantage of loan: If gold prices rise during the loan period, you benefit from the appreciation when you reclaim your gold after repayment.
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