Gold Loan Interest Rate and Charges

Know the current gold loan interest rate and other applicable charges before applying for our gold loan.

Interest rate and applicable charges

Types of fee

Applicable charges

Interest rate

9.50% to 28% per annum

Processing fees

0.12% of the loan amount (inclusive of applicable taxes).
Subject to a minimum Rs. 99 (inclusive of applicable taxes) and maximum of Rs. 600 (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 for cash disbursement only.

Penal Interest

3% per annum on outstanding balance

Penal Interest margin/ rate will be over and above the interest rate slab mentioned above which shall be applicable/ chargeable in case of default in repayment of the outstanding dues post maturity.

Part-prepayment charges


Foreclosure charges

Minimum 7 days interest

Scenario – Foreclosure charges are “0”, but in case the customer closes the loan within 7 days of booking, minimum 7 days interest is charged.

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)

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

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What is 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 gold loan interest rates starting at 9.50% per annum, ensuring a cost-effective and flexible solution to meet your financial needs.

Factors affecting gold loan interest rates

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

Gold loan repayment options

We offer multiple repayment options where you may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.

Gold loan interest calculator

You can use a gold loan calculator when planning your loan application. It allows you to know your repayment liability and helps you make affordable borrowing decisions.

If you wish to know the interest rate applicable to your loan amount, you can simply use our handy online gold loan calculator. It will give you the exact interest amount based on the applicable interest rate and your preferred loan tenure.

Types of Gold Loan Interest Rate

Gold loan rate of interest are usually categorised into two types: Fixed and floating interest rates.

Fixed interest rate
This type of interest rate remains constant throughout the entire duration of your loan. In other words, the gold loan rate of interest you are charged on the loan amount remains unchanged, resulting in a consistent repayment throughout your loan tenure. This can provide you with stability in your financial planning, as you know exactly how much you need to pay each month.

Floating interest rate
Unlike a fixed interest rate, a floating interest rate is not constant. This means that interest rates on your gold loan can change based on these benchmarks, which are influenced by market conditions. Consequently, the interest rate on your gold loan can increase or decrease unpredictably as these benchmarks fluctuate.

With Bajaj Finserv Gold Loan, you get the stability in payments with fixed interest rates, which can be beneficial if you want to plan your finances accurately.

What makes gold loan a wise financing solution?

When in need of quick access to funds, gold loans emerge as a good choice for various reasons:

  • Low interest rates: Loans against gold jewellery typically come with low gold loan interest rates, providing a cost-effective financing option.
  • Minimal documentation: The application process involves submitting minimal documents, simplifying the approval process.
  • Versatile use of funds: Unlike specific loans like car or home loans, gold loan funds can be used for various purposes according to your needs.
  • No additional collateral: Your gold jewellery serves as sufficient collateral, eliminating the need for additional security.
  • No credit dependency: Since the loan is secured against physical gold jewellery, your credit history doesn't play a significant role in the approval process. This makes gold loans accessible even if you have no credit history or a low credit score.

How to apply for Gold Loan

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

  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 done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.

Frequently asked questions

Can I pay only interest on a gold loan?

Yes, you have the flexibility to choose how you want to repay your gold loan. Bajaj Finance offers multiple repayment options for your convenience. Here are the options you can consider:

  1. Pay only the interest amount: You can choose to pay only the interest portion of the loan on a monthly, bi-monthly, quarterly, half-yearly, or annual basis. Then, at the end of the loan tenure, you can settle the principal amount.
  2. Repay both interest and principal: Another option is to make regular instalments that include both the interest and principal components of the loan. This allows you to gradually repay the entire loan amount over time.
  3. Interest-first repayment: Alternatively, you can opt to pay the interest amount at the beginning of the loan tenure and repay the principal amount throughout the loan duration.

To make the right choice, it's advisable to discuss the available repayment options. This will help you plan your financial journey effectively and minimise the interest rate on your loan.

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

There is no minimum credit score required for a gold loan and it does not influence your gold loan eligibility.

How much gold is required to get a gold loan of Rs. 1 lakh?

To obtain a gold loan of Rs. 1 lakh, the quantity of gold needed depends on the current gold rate and the loan-to-value ratio provided. Bajaj Finance offers a loan-to-value of up to 75%, and since gold loan rates fluctuate, the amount of gold required will change with the prevailing market rate.

I am a farmer. Do you offer a discount on gold loan interest rates?

With Bajaj Finserv, you can get one of the lowest gold loan interest rates starting at just 9.50% p.a. The interest rates are the same for everyone and we do not provide any discount for any specific section of borrowers.

Is it possible to repay my gold loan amount partially?

Yes, Bajaj Finance offers you the option to repay the entire amount or a part of your gold loan at no additional cost. Also, with our part-release facility, you can repay a part of your loan and take part of your ornaments back before the end of your gold loan tenure.

What is the interest rate for agricultural gold loan?

Since the agricultural gold loan is secured against physical gold jewellery, the interest levied on such loans is generally on the lower side. Bajaj Finance offers agricultural gold loan interest rates to farmers, starting from 9.50% p.a.

How can I reduce my gold loan interest?

With Bajaj Finance, you can enjoy a low gold loan interest if loan amounts are high and repayments are frequent. So, when the loan is due, you can pay the principal amount all at once and get your gold jewellery back.

Can I get an interest free gold loan from Bajaj Finance?

No, but you can get a gold loan at nominal gold loan interest rate by choosing a high loan amount or a high frequency of repayment. We also levy no foreclosure or pre-repayment charges, that further reduces the expenses incurred.

What is the formula for gold loan interest rate?

Let's say you choose a loan for Rs. 1,20,000 that you pay back each month. In this case, you might have to pay 10% per year in interest. Then, this is how your gold loan interest payments will look:

Rs. 1,20,000 * 10% = Rs. 12,000 annual interest
Monthly interest pay-out = Rs. 12,000/12 = Rs. 1,000 per month

How to get low interest gold loan with Bajaj Finance?

Your gold loan rate of interest is determined by the loan amount and repayment frequency of your loan instalments. With Bajaj Finance, you can enjoy a low jewel loan interest rate if loan amounts are high, and repayments are frequent.

What is the interest rate of a 10-gram gold loan?

When you pledge 10 grams of gold, you can secure a loan amount equal to up to 75% of the current market value. At Bajaj Finance, you can enjoy interest rates on gold loans ranging from 9.50% to 28% per annum.

What is the interest of 1 lakh in gold loan?

Typically, you can avail an amount equivalent to 75% of the current market value of your gold, as per the RBI guidelines. Bajaj Finance offers competitive gold loan interest rates, ranging from 9.50% to 28% per annum. To ensure accuracy while calculating interest rate on a gold loan worth 1 lakh, consider using our gold loan calculator to determine your exact interest amount.

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