All you need to know about GST on Gold Loan interest

Learn more about gold loan interest rates, GST on gold loan interest, and how to apply for a Bajaj Finserv Gold Loan.
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All you need to know about GST on Gold Loan interest
APPLY
2 min read
14 July 2023

Taking a loan is a common way to handle financial emergencies. There are different types of loans available, such as personal loans, home loans, education loans, and even gold loans, which are popular in countries like India where gold is a big investment market.

In India, people often buy gold for special occasions to bring luck and prosperity to their homes. Some also buy gold as an investment. Because of this, gold loans have become popular because they are easily accessible and can be used in emergencies.

While you may be familiar with the basic requirements for getting a loan backed by gold, there are other important things to consider it is a good investment. Keep reading to learn about interest rates, GST on gold loan interest, and other important aspects.

Gold loan interest rate

The gold loan interest rate represents the cost of borrowing against your gold jewellery. With Bajaj Finance, you can avail of a gold loan at interest rates starting at 9.50% per annum, ensuring a cost-effective and flexible solution to meet your financial needs.

A gold loan can be a valuable financial tool in times of need. However, it is essential to consider certain factors that can impact your borrowing experience.

  • Market conditions: Fluctuations in market demand can impact interest rates as well as the value of the gold loan per gram.
  • Gold rates: The market rate of gold also affects the interest rates on gold loans, as they directly impact the value of the gold jewellery offered as collateral.
  • Repayment frequency: The frequency of the interest payments on your gold loan also impacts the interest rate.

If you are considering a gold loan from Bajaj Finance, there are online tools to assist you throughout the application process. One of these is the free ​​online Gold Loan Calculator.

You can use the calculator to determine the loan amount you can avail of and calculate the interest that will be applicable. Simply input the necessary information, such as the weight of the gold you intend to pledge or the desired loan amount, and the calculator will provide you with accurate and relevant details. It is a quick and easy way to access the information you need to make informed decisions about your gold loan.

GST and gold loan interest rate

The goods and services tax (GST) is an indirect tax levied on the supply of goods and services in India. When it comes to the interest rate on gold loans, the processing fee for gold loans includes GST charges. This means that the GST is already factored into the processing fee amount, so you do not need to pay it separately. When you see the processing fee listed, it already reflects the total cost inclusive of GST. This approach ensures transparency and makes it easier for you to understand the total charges associated with your gold loan. If you have any questions regarding the processing fee or GST charges, please feel free to reach out to us.
 
If you need a loan for planned or unplanned expenses, you can consider Bajaj Finserv Gold Loan. As long as you are an Indian citizen aged between 21 and 70 years, you can apply by providing your KYC documents.You only need any one of the following commonly accepted documents like, voter ID card, Aadhaar Card, passport, driving licence, NREGA job card or a letter from the national population registration.
 
There are two convenient ways to apply. You can either visit a nearby Bajaj Finance branch or apply online through their website by following a few simple steps. Here is how:
  1. Click on ‘APPLY’ to open our online application form
  2. Enter your 10-digit mobile number and click on ‘GET OTP’
  3. Submit the OTP to verify your identity
  4. Select your state and city to find the branch nearest to you
  5. Enter your full name and date of birth as per your PAN
  6. Set up your appointment at our branch
Once you have submitted your application, a representative from Bajaj Finserv will reach out to guide you through the next steps. With more than 800 branches located throughout India, Bajaj Finance ensures a quick and convenient loan processing experience. To apply for a ​​gold loan today, simply visit the Bajaj Finance website.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.