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

Processing fees

0.12% (Inclusive of applicable taxes) of Loan Amount, Subject to a Minimum of 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


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


Foreclosure charges


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.

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How to apply for 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 on 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

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 tenure. Bajaj Finserv offers three repayment options for gold loan:

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

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

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.

What are the factors that affect gold loan interest rates?

Multiple factors affect the gold loan interest rate, such as market price of gold, available gold, repayment option and so on.

What are the interest rates and charges for gold loans?

Bajaj Finserv offers gold loan 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 0.12%. Read more about our other fees and charges.

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

Gold loan interest rate remains same for all gold ornaments.

What is the gold loan interest rate?

Bajaj Finance offers one of the lowest gold loan interest rates in the market. Our fees and charges are transparent and kept minimum so that you pay less upfront. The interest rate ranges from 9.50% to 28%* p.a. for gold loans starting from Rs. 5,000 up to Rs. 2 crore.

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 agriculture 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 Finserv?

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 Finserv?

Your gold loan interest rate 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.

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