Gold Loan fees and charges

Go through all the fees and charges applicable before applying for a gold loan.

Applicable fees and charges

Types of fee

Applicable charges

Interest rate

9.50% p.a. to 28% p.a.

Processing fees

Rs. 99 (Inclusive of applicable taxes)

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount

Cash handling charges

Rs. 50 (Inclusive of applicable taxes) applicable only for cash mode of disbursement

Penal interest

3% p.a. on outstanding balance

The penal interest margin/ rate will be over and above the interest rate slab. This shall be applicable/ chargeable in case of default in repayment of the outstanding dues.

Part-prepayment charges

NIL

Foreclosure charges*

NIL

Auction charges

Charge for physical notice – Rs. 40 (Inclusive of applicable taxes) per notice

Recovery charges – Rs. 500 (Inclusive of applicable taxes)

Advertisement fee – Rs. 200 (Inclusive of applicable taxes)


*Foreclosure charges are zero. However, if you close the loan within 7 days of booking, you have to pay minimum 7 days’ interest.

Note that additional cess will be applicable on all charges in accordance with state-specific laws.

The interest rates applicable on gold loans are dynamic and frequently change due to external factors.

Still haven’t found what you are looking for? Click on any of the links at the top of this page.

How to apply for a Gold Loan

Step-by-step guide to applying for a gold loan

  1. Click on ‘APPLY’ on this page to open our online application form
  2. Enter your first and last name as it appears in your PAN
  3. Enter your 10-digit mobile number and select your city
  4. Click on ‘GET OTP’
  5. Enter OTP to verify your details
  6. You will be shown the address of the nearest branch in your city. You will also receive a call from our representative who will guide you to complete your gold loan application.

Frequently asked questions

How is gold loan interest calculated?

Gold interest can be computed by subtracting the principal amount from the total amount that needs to be paid off. You can easily calculate the amount you need to pay by the end of the gold loan tenor using a reliable gold loan EMI calculator online.

Can I pay only interest on a gold loan?

Yes, you can choose to pay only the gold interest rate and settle the principal loan amount at the end of your repayment tenor. Bajaj Finserv offers three gold loan repayment options:

  • Pay only interest component monthly, bi-monthly, quarterly, half yearly or yearly and repay the principal amount at the end of the tenor.
  • Repay both interest and principal components against the gold loan as affordable EMI.
  • Pay the interest at the beginning of the loan tenor and repay the principal amount throughout the loan tenor.

However, it is in your best interest to discuss the available repayment options beforehand to better plan your EMIs or pay-outs against the gold loan at a minimum interest rate.

Does my credit score have any effect on the interest rate on my gold loan?

Like any other financial product, your credit score tends to influence your gold loan eligibility. Having a high credit score over 750 makes you eligible to avail of a loan against gold. It also enhances your chances of securing lucrative terms of service and repayment options, including flexibility in repayment and a low interest rate. Even though individuals without a 750+ credit score can secure a gold loan, they might not be offered various associated perks and benefits.

What are the factors that affect gold loan interest rates?

Multiple factors affect the gold loan interest rate, such as inflation and the market price of gold. In addition, having a CIBIL Score above 720 will also help you get a favourable interest rate on your gold loan of a high value.

What are the interest rates and charges for gold loans?

Bajaj Finserv offers Gold Loans at nominal charges. Our fees and charges are transparent and kept minimum so that you have to pay less upfront. Our Gold Loan Interest rate starts from 9.50%* p.a. In addition, we charge a processing fee of Rs. 99 of the gold amount. Read more about our other fees and charges

Can the gold loan interest rate vary with the kind of gold ornaments I pledge?

Yes, loan against gold interest rate will vary with the kind of gold jewellery pledged. Bajaj Finserv accepts gold jewellery of only 22 carats and above. The jewellery should not include any precious stones.

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