Gold Loan Interest Rate

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. The gold loan rate of interest starts from 9.50% to 24% per annum and may vary based on your loan amount, the value of your gold, loan tenure, and other factors affecting gold loan rate such as market conditions, LTV norms, and the purity of the pledged jewellery.

Here are some key features of Bajaj Finserv Gold Loan interest rates:

• Competitive starting rate: The gold loan rate per annum begins from just 9.50% to 24% 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 amount borrowed, the purity of your gold, and its current market value. This ensures fairness and clarity in borrowing. 
• Multiple repayment options: With multiple gold loan repayment options, including monthly, bi-monthly, quarterly, half-yearly, or annual interest payments, 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 flexible tenure options, helping you manage repayments efficiently.
• No hidden charges: Transparent pricing with clear terms and conditions ensures that you know exactly what you owe without surprises.
• Quick disbursal: Once your gold is evaluated, funds are transferred promptly to your account, giving you instant access to liquidity.

These gold loan features make 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 interest rates depend on multiple factors such as loan amount, gold purity, LTV ratio, and repayment tenure. 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: Higher LTV can increase risk and lead to higher rates.
• Loan tenure: Shorter tenure usually attracts lower interest costs.
• Gold purity: Higher purity gold (22K or above) improves valuation and may reduce rates.
• Repayment history: Timely repayment behaviour may help secure better offers.

• 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: As per latest RBI updates, the loans against ornaments and coins are capped at an aggregate limit of 1 kg of gold and 10 kg of silver ornaments, along with 50 g of gold and 500 g of silver coins per borrower. Renewal or top-up of a loan may be considered upon borrower request, subject to applicable credit checks, permissible LTV norms, and the loan being classified as standard. In case of bullet repayment loans, accrued interest must be cleared prior to renewal, and such renewals must be traceable in core systems. For loans exceeding ₹2.5 lakh, detailed credit assessment shall be conducted, including evaluation of the total payable amount in bullet repayment cases.

Understanding gold loan interest calculation helps you clearly know the total amount you will repay at the end of your tenure. When you pledge your 18–22 karat gold jewellery, the lender determines the rate based on purity, loan amount, tenure, repayment option, and LTV ratio. These factors directly influence the final gold loan interest amount. A higher LTV or longer tenure may slightly increase the overall interest payable.

If you are wondering how to calculate gold loan interest, you can either do it manually or use a gold loan interest calculator for quick and accurate results. An online calculator helps you check eligibility, select repayment frequency, and instantly view the estimated interest payable. With our online calculator, you can check your gold loan eligibility and estimate your gold loan ROI. 

The standard gold loan interest formula used for manual calculation is:
 

Interest = Principal × Interest Rate × Tenure / (12 × 100)

For example, if you take a gold loan of ₹1,00,000 at an interest rate of 12% for 6 months, the calculation will be:

Interest = 1,00,000 × 12 × 6 / (12 × 100) = ₹6,000

So, the total amount payable would be ₹1,06,000.
 

*Do note that the results generated by the calculator are indicative and may differ from the final loan offer at the time of application.

Applying for a gold loan with Bajaj Finance is simple and requires only a few basic steps. You can complete the online gold loan application process through the Bajaj Finserv App or the official website, choose your nearest branch, and receive an in-principle eligibility confirmation. After verification and gold evaluation at the branch, the approved loan amount is disbursed quickly.
 

Step-by-step online application process

Step 1: Click on “Apply”
Start your online gold loan application by clicking on the “Apply” button on the website or app.

Step 2: Enter your mobile number
Provide your 10-digit mobile number to begin the verification process.

Step 3: Verify OTP
Enter the OTP sent to your registered mobile number to confirm your identity.

Step 4: Fill in personal details
Submit the required details and select your nearest gold loan branch.

Step 5: Download in-principle eligibility letter
Download your in-principle loan eligibility letter after successful submission.

After completing the online application, a representative will contact you to guide you through the next steps. You will need to visit the selected branch with your gold jewellery for evaluation and final verification. Once the process is completed, the approved loan amount is disbursed as per your selected repayment option.

Quick tip: It takes just 2 steps to check your eligibility for a Bajaj Finserv Gold Loan. Enter your mobile number now.