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Rs. 5,000 - Rs. 2 crore
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Gold loan interest rate and applicable charges
| Types of fee | Applicable charges |
| Interest rate | 9.50% to 24% per annum |
| Processing fees | 0.20% of the loan amount (Inclusive of applicable taxes). Subject to a minimum Rs. 150 /- (Inclusive of applicable taxes) and maximum of Rs. 1000/- (Inclusive of applicable taxes) and deducted upfront from loan amount. |
| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
| Penal charge | 3% per annum on outstanding balance. Penal charge will be over and above the interest rate which shall be applicable/chargeable in case of default in repayment of the outstanding dues post-maturity. |
| Convenience fee | Convenience fee of Rs. 149 (inclusive of applicable taxes) shall be levied for part release of ornament(s) pledged. |
| Pre-payment charges | Full Pre-payment: Nil, any time post disbursement of loan. Part Pre-payment: Nil, any time post disbursement of loan. |
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How is gold loan interest calculated
Understanding the gold loan interest calculation helps you get a clear view on the total amount you will repay at the end of your tenure. The lenders consider factors like gold purity, loan amount, tenure, repayment option, and LTV ratio to calculate the final gold loan interest amount. You can pledge 18-22 karat gold jewellery, ornaments, or gold coins up to 24 karat purity to avail a gold loan.
To calculate the gold loan interest, you can either use the gold loan interest formula to calculate manually or use a gold loan interest calculator for quick and accurate results. The online gold loan calculator helps you check loan amount, repayment frequency, and the estimated interest payable. With our online calculator, you can check your gold loan eligibility and estimate your gold loan ROI.
*Do note that the results generated by the calculator are indicative and may differ from the final loan offer at the time of application.
Factors affecting gold loan interest rates
Gold loan interest rates depend on multiple factors . Understanding these factors helps you choose the right loan and reduce your overall borrowing cost.
- Loan amount: Higher loan amounts may qualify for lower interest rates.
- Loan-to-value (LTV) ratio: The applicable LTV ratio impacts the eligible loan amount and the overall interest payable by determining how much you get against your gold.
- Repayment tenure: The repayment tenure impacts the total interest payable, as a longer tenure generally results in interest being charged for a longer period, while a shorter tenure may help reduce the overall interest cost.
- Gold purity: Higher purity gold (18K or above) improves valuation and may reduce rates.
- Lender policy: Interest rates can vary based on internal lending strategy and market conditions.
Gold prices directly influence gold loan interest rates. When gold value rises, lenders may offer better loan terms because the pledged collateral becomes more valuable.
Pro-tip: Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.
Please note: At Bajaj Finance, gold-backed loans are offered with proportional valuation, quick access to funds, and complete transparency. Loans above Rs. 2.5 lakh are subject to credit checks, and in the case of bullet repayment loans, the total payable amount is considered upfront. The valuation is based strictly on the intrinsic value of gold, and stones or other embellishments are not included. The LTV ratio must be maintained throughout the loan tenure, for bullet repayment loans, the amount includes the principal and interest payable at maturity. The LTV norms are subject to change as per the RBI guidelines and lender policy. Borrowers or legal heirs are informed about any loss, issues, or the related compensation process. For any delays in release due to lender's fault may call for a per day compensation of Rs. 5,000. The loans are not sanctioned for purchasing gold in any form, including primary gold, jewellery, coins, ETFs, mutual funds or any similar gold-backed financial assets, nor against primary gold.
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Benefits of Bajaj Finance Gold Loan interest rates
When you consider opting for a gold loan, understanding the gold loan rate and the process of gold loan interest rate calculation is crucial. With Bajaj Finance, you get a simple and transparent interest rate structure that makes repayment easy and convenient.
Here are some key benefits of Bajaj Finance Gold Loan interest rates:
- Starting rate: The gold loan rate per annum begins from just 9.50% p.a., the loan becomes affordable for borrowers seeking short-term credit against their gold.
- Value-based pricing: We offer transparent gold loan pricing, where the gold loan interest rate calculation depends on the eligible loan amount, purity of the pledged gold, and its gold rate. This ensures fairness and clarity in borrowing. The gold loan LTV depends on the amount you borrow. Loans up to Rs. 2.5 lakh get up to 85% LTV. For loans between more than Rs. 2.5 lakh to Rs. 5 lakh, you get up to 80%. Amounts more than Rs. 5 lakh to Rs. 2 crore qualify for up to 75%.
- Repayment options: You can select from multiple repayment options, wherein you can choose from monthly, bi-monthly, quarterly, half-yearly, or annual interest payment. You can choose a plan that suits your financial convenience, with principal and pending interest payable before maturity.
- Interest rate advantages: The gold loan interest rate benefits include lower interest for higher loan amounts, transparent calculations, and convenient tenure options, helping you manage repayments efficiently.
- No hidden charges: We mention all the associated fees and charges upfront to ensure you know exactly what you owe without surprises, you can make confident borrowing decisions.
- Quick disbursal: Once your gold is evaluated, funds are transferred promptly to your account, often in just one branch visit*.
These gold loan features and low interest gold loan rates make this a wise borrowing option. It also makes it easy to understand the gold loan rate per annum and its benefits, allowing you to make informed borrowing decisions with confidence.
Please note, interest rates are subject to internal policies and applicable regulations.
Gold loan repayment options and their impact on interest
When you take a gold loan with Bajaj Finance, your repayment choice directly affects how much interest you pay. Here is how each option works for you:
- Interest-only payments: You pay only the interest at intervals such as monthly, bi-monthly, quarterly, half-yearly, or annually, while the principal is paid at the end. This keeps your payments lighter during the tenure, but interest continues on the full loan amount.
- Bullet repayment (lump sum at maturity): You repay both principal and interest at the end of the tenure. It offers flexibility during the loan period, but interest keeps accumulating until final repayment.
- Part-prepayment: You can repay a portion of the loan anytime. This reduces your outstanding principal and helps lower the total interest payable.
- Foreclosure: You can close the loan before the tenure ends without additional charges. Early repayment helps you save on overall interest.
Choosing the right option helps you manage your cash flow while keeping interest costs under control.
Quick tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
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Disclaimer
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *