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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
To get a clear view of the total amount you will repay at the end of your tenure, it is important to understand the gold loan interest calculation. The final interest and loan amount is calculated by considering factors like gold purity, loan amount, tenure, repayment option, and LTV ratio. You can pledge 18-22 karat gold jewellery, ornaments, or gold coins up to 24 karat purity to avail a gold loan.
To calculate the gold loan interest, you can either use the gold loan interest formula to calculate manually or use a gold loan interest calculator for quick and accurate results. The online gold loan calculator helps you check loan amount, repayment frequency, and the estimated interest payable. With our online calculator, you can check your gold loan eligibility and estimate your gold loan ROI.
*Do note that the results generated by the calculator are indicative and may differ from the final loan offer at the time of application.
Factors affecting gold loan interest rates
Gold loan interest rates depend on multiple factors. A few real factors shape what you're offered, and once you know them, it's a lot easier to understand why one lender's rate looks different from another's, and where you actually have some room to influence your own.
- Loan amount: Here's something that might surprise you — borrowing a bit more can occasionally work in your favour. Some lenders offer better rates on higher loan amounts, so a smaller loan isn't always the cheaper one in the end.
- Loan-to-value (LTV) ratio: Think of this as how close you're borrowing to your gold's actual worth. Push that number up, and you're getting more cash against the same gold — which sounds great on paper, but it usually comes at a cost, since you're asking the lender to take on more risk. Before you max this out, it's worth pausing and asking yourself how much you genuinely need.
- Repayment tenure: The longer you take to repay, the longer interest keeps accumulating — even if each individual payment feels lighter on your wallet. Go shorter, and you'll likely pay less interest overall, though the monthly amount will be steeper. There's no one right answer here; it really comes down to what your budget can comfortably absorb.
- Gold purity: If your gold is 18K or higher, it tends to be valued better, which often works in your favour when it comes to the rate you're offered. Lower purity gold, understandably, doesn't stretch quite as far.
- Lender policy: Not every lender plays by the same rulebook. Rates can shift based on a lender's own internal strategy, how competitive the market is at that moment, and broader economic conditions — which is exactly why comparing a couple of offers is almost always worth the extra few minutes.
And then there's something people often overlook gold prices themselves. When gold becomes more valuable, the collateral backing your loan becomes stronger too — so lenders sometimes respond by offering better terms, simply because what you've pledged is now worth more.
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.
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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. *