Gold Loan Rate of Interest and Charges

Type of fees

Applicable charges

Interest rate

11% p.a. onwards

Documentation charges

Rs. 25 to Rs. 150 (Inclusive of applicable taxes)

Stamp duty

At actuals. (as per state)

Penal interest

3% per annum on outstanding balance

Foreclosure charges


Part pre-payment charges


Document/statement charges statement of account/repayment schedule/foreclosure letter/no dues certificate/interest certificate/list of documents

Download your e-statements/letters/certificates at no extra cost by logging into the customer portal – Experia. You can get a physical copy of these from any of our branches at a charge of Rs. 50 (inclusive of applicable taxes) per document.

Cash handling charges

Rs. 50 (Inclusive of applicable taxes)

Auction charges (Inclusive of applicable taxes)

Demand notice 1 - Rs. 40
Demand notice 2 - Rs. 40
Auction notice - Rs. 40
Final auction notice - Rs. 40
Recovery charges - Rs. 500
Advertisement charges, armed guard charges - at actuals

  • 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 can be influenced by several factors

A gold loan is a viable financing solution wherein individuals can leverage their gold equity to obtain substantial funds. Due to the loan’s secured nature, gold loan interest rates tend to be lower than other financial products. The competitive interest rates contribute to the loan’s affordability and accessibility for all. Apply for a gold loan from Bajaj Finserv to meet big-ticket expenses without hassle.

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Factors affecting gold loan interest rates


When the inflation rate is high in an economy, the value of currency depreciates, and most individuals rush to invest in gold. Gold acts as a hedge against inflation, especially when it continues for a prolonged period. During such times, the price of gold increases and individuals can usually get a low interest rate against their gold loan.

Market price of gold

When the market price of gold is high, then the value of ornaments pledged by individuals will also be increased. In such cases, the risk of lending is deemed low, and consequently, the interest rates offered are also more competitive. Under such conditions, individuals can avail of the lowest interest gold loans in India.

Apart from these factors, the interest rates on offer can also be lower for existing customers. Contact us now to find out the gold loan rate today.

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 interest and settle the principal loan amount at the end of your repayment tenor. Bajaj Finserv offers three gold loan repayment options:

  • Pay only the interest component monthly or quarterly and pay 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.

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