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Rs. 5,000 - Rs. 2 crore
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Gold loan interest rate and applicable charges
| Types of fee | Applicable charges |
| Interest rate | 9.50% to 24.25% per annum |
| Processing fees | 0.20% of the loan amount (Inclusive of applicable taxes). Subject to a minimum Rs. 150 /- (Inclusive of applicable taxes) and maximum of Rs. 1000/- (Inclusive of applicable taxes) and deducted upfront from loan amount. |
| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
| Penal charge | 3% per annum on outstanding balance. Penal charge will be over and above the interest rate which shall be applicable/chargeable in case of default in repayment of the outstanding dues post-maturity. |
| Convenience fee | Convenience fee of Rs. 149 (inclusive of applicable taxes) shall be levied for part release of ornament(s) pledged. |
| Pre-payment charges | Full Pre-payment: Nil, any time post disbursement of loan. Part Pre-payment: Nil, any time post disbursement of loan. |
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How is gold loan interest calculated
The gold loan interest is influenced by factors such as the loan amount, interest rate, tenure and repayment option. The value and purity of your pledged gold determine the eligible loan amount, while the applicable LTV ratio sets the maximum amount you can borrow.
A simple way to estimate interest is:
Gold loan interest = Loan amount × Interest rate × Tenure
Example:
Let’s assume your eligible gold loan amount is Rs. 1.37 lakh, the interest rate offered is 24% p.a., with the chosen tenure of 12 months.
Interest = Rs. 1,37,000 × 24% × 12/12 = Rs. 32,880
So, the estimated amount payable towards principal and interest would be Rs. 1,69,880, subject to the applicable repayment terms and charges.
For an instant estimate, use the gold loan interest calculator to check your potential loan amount, repayment frequency and estimated interest.
Please note: The results shown by the calculator are indicative and may differ from the final loan offer at the time of application.
Factors affecting gold loan interest rates
The gold loan interest rates are majorly influenced by the loan amount, LTV ratio, repayment tenure, gold purity, and applicable lender policies. These factors can influence the terms and overall interest you pay.
- Loan amount: The amount you borrow can influence the applicable interest rate based on the lender’s pricing policy.
- LTV ratio: Borrowing a higher amount against your gold may affect the applicable loan terms and LTV limits.
- Repayment tenure: A longer tenure usually means paying interest for a longer period, increasing the total interest payable over time.
- Gold purity: The higher the gold’s purity, the more actual gold content it has. This can pus up your eligible loan amount.
- Lender policies: Each lender may have its own interest rate structure based on its policies and prevailing market conditions.
- Gold value: Changes in gold prices affect the value of your pledged gold and the loan amount you may be eligible for.
Pro-tip: Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.
Please note: At Bajaj Finance, gold-backed loans are offered with proportional valuation, quick access to funds, and complete transparency. Loans above Rs. 2.5 lakh are subject to credit checks, and in the case of bullet repayment loans, the total payable amount is considered upfront. The valuation is based strictly on the intrinsic value of gold, and stones or other embellishments are not included. The LTV ratio must be maintained throughout the loan tenure, for bullet repayment loans, the amount includes the principal and interest payable at maturity. The LTV norms are subject to change as per the RBI guidelines and lender policy. Borrowers or legal heirs are informed about any loss, issues, or the related compensation process. For any delays in release due to lender's fault may call for a per day compensation of Rs. 5,000. The loans are not sanctioned for purchasing gold in any form, including primary gold, jewellery, coins, ETFs, mutual funds or any similar gold-backed financial assets, nor against primary gold.
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Benefits of Bajaj Finance Gold Loan interest rates
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.
Here are some key benefits of Bajaj Finance Gold Loan interest rates:
- Starting rate: The gold loan rate per annum begins from just 9.50% 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 eligible loan amount, purity of the pledged gold, and its gold rate. This ensures fairness and clarity in borrowing. The gold loan LTV depends on the amount you borrow. Loans up to Rs. 2.5 lakh get up to 85% LTV. For loans between more than Rs. 2.5 lakh to Rs. 5 lakh, you get up to 80%. Amounts more than Rs. 5 lakh to Rs. 2 crore qualify for up to 75% LTV.
- Repayment options: You can select from multiple repayment options, wherein you can choose from monthly, bi-monthly, quarterly, half-yearly, or annual interest payment. 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 convenient tenure options, helping you manage repayments efficiently.
- No hidden charges: We mention all the associated fees and charges upfront to ensure you know exactly what you owe without surprises, you can make confident borrowing decisions.
- Quick disbursal: Once your gold is evaluated, funds are transferred promptly to your account, often in just one branch visit*.
These gold loan features and low interest gold loan rates make this a wise borrowing option. It also makes 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 repayment options and their impact on interest
The repayment option you pick isn't just paperwork. It genuinely changes how much interest you end up paying. Here's what each option actually looks like in practice:
- Interest-only payments: You just pay the interest at regular intervals — monthly, bi-monthly, quarterly, half-yearly, or annually, whichever suits you — and settle the principal at the very end. It keeps things light on your wallet during the loan's tenure, but keep in mind interest is still quietly building up on the full amount the whole time.
- Bullet repayment: Similar idea but framed slightly differently — you pay off the principal in one go at the end of the tenure, while handling interest on whatever schedule you've chosen along the way. It's a good fit if you know a lump sum is coming your way later and don't want to worry about the principal until then.
- Part-prepayment: Got some extra cash sitting around? You can put it toward your loan anytime. Every bit you pay down reduces what you owe, which in turn chips away at the total interest you'll pay — a small move now can genuinely save you money later.
- Foreclosure: If you're in a position to close the loan early, you can — and without any extra charges for doing so. Wrapping things up ahead of schedule means you stop paying interest sooner, which usually works out in your favour.
At the end of the day, there's no single "best" option — it really comes down to your own cash flow and what feels manageable. Picking the repayment style that actually fits your situation is one of the easiest ways to keep your interest costs in check.
Quick tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
Frequently asked questions
Loan Interest
CIBIL
Application
Loan Value
Repayment
The gold loan interest rate represents the cost of borrowing against your gold. With Bajaj Finance, you can avail of a gold loan at interest rates starting at 9.50% to 24.25% per annum, ensuring a cost-effective and flexible solution to meet your financial needs.
To get a gold loan with low interest rates, it is advised to check your eligibility and maintain good repayment history. Bajaj Finance offers one of the lowest gold loan interest rate in the market with multiple repayment options. Choosing the right tenure and pledging high-purity gold jewellery, ornaments or coins can further help reduce overall borrowing costs
The gold loan rate directly affects how much loan you can get against your gold. When gold prices are high, the loan amount offered increases. However, the gold loan rate and the current interest rate of gold loan depend more on the lender’s policies, tenure, and repayment options than gold prices.
With Bajaj Finance, you can choose to pay the interest on gold loan on monthly, bi-monthly, quarterly, half-yearly or annual basis as per your convenience. The principal and any pending interest should be paid before the end of the tenure.
The gold loan interest calculation for gold loans is key to knowing your repayment amount. When you pledge your gold, factors like purity, loan amount, tenure, and repayment mode influence the rate. We offfer low jewel loan interest options in India. You can also use our online gold loan calculator for better financial planning.
A low CIBIL score may affect your gold loan application and could influence the interest rate offered by Bajaj Finance. While the loan is secured against your gold, your credit profile may also be considered during the assessment process. Eligibility and loan terms are determined based on multiple factors
With the appreciating gold price in the market, you can avail the benefits of a gold loan anytime you need. With low Bajaj Finance Gold Loan interest rate, you can avail the loan with no additional stress on your financial stability.
Bajaj Finance offers a transparent gold loan process where valuation is carried out by trained professionals. Typically, there are no separate or hidden gold valuation charges, as the assessment is part of the overall loan process, ensuring a smooth and hassle-free experience for you.
The loan on 10 grams of gold depends on its purity and the current market rate. With Bajaj Finance, you can get up to 85% of the gold’s value as a loan. Exact amounts vary daily with gold prices. For example, if you have 10 grams of 22K gold and the current gold rate is ₹5,000 per gram, the total value is Rs. 50,000. With Bajaj Finance, you can get up to 85% of this value, which is Rs. 42,500 as a gold loan.
The interest on a ₹5 lakh gold loan depends on the gold loan interest rate and tenure. Using the formula:
Interest = Principal × Interest Rate × Tenure / (12 × 100)
For example, at a 12% annual rate for 6 months:
Interest = 5,00,000 × 12 × 6 / (12 × 100) = ₹30,000.
So, for a ₹5 lakh loan over 6 months at 12% per annum, the interest would be ₹30,000. You can use out online gold loan calculator for exact calculations to make informed loan decisions.
With Bajaj Finance, you can get a gold loan interest rate starting from 9.50% to 24.25% p.a.
Yes, you can choose to part-prepay or foreclose your entire loan easily, without incurring any additional charges.
Yes, the interest rate remains fixed throughout the loan tenure.
Yes, repaying your gold loan early can help reduce the overall interest payable, as interest is charged only for the period during which the loan remains outstanding.
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Disclaimer
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *