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Gold Loan Interest Rates

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A gold loan is a viable financing solution wherein individuals can leverage their gold equity to obtain substantial funds. Owing to the loan’s secured nature, the gold loan interest rates tend to be lower when compared to 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. We offer the credits against one of the lowest interest rates of gold in India, thus boosting affordability and convenience.

Gold Loan Interest Rate and Fees

Our gold loan interest rates and charges are explained in this table below –

Fee type Charges applicable
Interest rate Starting from 11.99% p.a.
Part payment NIL
Documentation fee From Rs. 25 – Rs. 100, including taxes
Penal interest 3% p.a. on the outstanding balance
Cash handling charge Rs. 50 inclusive of all applicable taxes
Foreclosure or release charges NIL for longer than 60 days
Rs. 20 between 31 and 60 days
Rs. 40 if within 30 days
Document/statement charges Digital copies of all documents are cost-free.
Obtain hard copies from the nearest branch at Rs. 50.
Stamp Duty At actuals. (as per State)
  • Note that extra cess will be applicable on all these charges in the State of Kerala.
  • You can download e-statement, letters or certificates at zero cost by simply logging into our Customer Portal – Experia.
  • You can access a physical copy of Statement of Account, No Dues Certificate, Repayment Schedule, Foreclosure Letter, List of Documents, Interest Certificate from your nearest Bajaj Finserv branch by paying Rs. 50, inclusive of all applicable taxes.
  • The interest rates applicable on gold loans are dynamic and can be influenced by several factors.

Factors Affecting Gold Loan Interest Rates

  • Inflation
    When the rate of inflation 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 high. 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 (FAQs)

1. 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 EMI calculator online. Based on the interest component or EMI, you can plan to repay the lowest interest rate gold loan in India more effectively.

2. 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 component 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 plan your EMIs or pay-outs against the gold loan at a minimum interest rate better.

3. 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 and loan against the gold interest rate. 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 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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