✓ Gold Loan up to 2 Cr ✓ Interest Rate Starting @ 10% ✓ Highest Gold Loan / Gram


A gold loan is an easy, quick and safe way to get instant credit at low-interest rates starting from 10%. One of the best investment options that might give you security during a financial crisis is a gold loan. In the modern day, gold is also a form of collateral that may be used to secure a loan. Your immediate short-term needs can be immediately met at cheaper interest rates with a gold loan.

One of the main things to think about when taking out a loan is the interest rate. Since a gold loan is a secured loan product, it can be obtained at lower interest rates as compared to other loans. With no hidden charges and 100% transparency, you can enjoy a seamless experience with Bajaj MARKETS. However, because interest rates vary from lender to lender, it is essential to compare them and select the best one as per your requirement.

Gold Loan Interest Rates and Other Fees

The charges applicable on your gold loan are as follows:

Types of Fees

Applicable charges

Processing fees

Rs. 75 of the total loan amount (Inclusive of applicable taxes)

Stamp duty

As per the state laws *(Deducted upfront from loan amount)

Cash handling charges

Rs. 50 (inclusive of applicable charges)

Applicable for cash mode of disbursement

Penal charges

3% per annum on outstanding balance-

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

Part pre-payment charges


Foreclosure charges


Auction charges

Physical Notice – Rs. 40 (inclusive of applicable taxes)

Recovery Charges – Rs. 500 (inclusive of applicable taxes)

Advertisement Fee – Rs. 200 (inclusive of applicable taxes)

Note: The interest rates applicable on gold loans are dynamic and can be influenced by several factors.

Factors Affecting Gold Loan Interest Rates

  • Inflation: The most important factors that affect a gold loan are inflation, market value, purity and weight of gold. Increase in inflation indices leads to an increase in prices of commodities, which results in increased investments in gold. Thus, the demand for gold increases, thereby resulting in increased market price of gold. This fluctuation in gold prices results in an increase in gold loan interest rates.

  • Market Price of Gold: Gold loan interest rates are dynamic in nature and directly proportional to the market value of gold. The value depends on several factors such as market indices, inflation, weight and the purity of gold. The minimum period for charging interest (irrespective of the date of repayment) is 7 days and some additional amount will be applicable on all charges based on state-specific laws.

Types of Gold Loan Interest Rates

There are two types of interest rates on gold loans, viz. fixed and floating rate. In a fixed interest rate the EMI amount remains the same throughout your overall loan tenure. On the other hand, with floating interest rates, the rate of interest applicable changes as per the fluctuation in gold prices. Fixed interest rates are usually 1% or 2% higher than the floating interest rates, but it offers more certainty.


FAQs on Gold Loan Interest Rate

  • ✔️ How is a gold loan interest rate calculated?

    A gold loan interest rate can be calculated by subtracting the principal amount from the total amount to be paid off. You can also use an EMI calculator to get instant results which is an easier and more handy way to calculate the amount.

  • ✔️How can I pay my interest on a gold loan?

    You can pay your interest on a monthly, bi-monthly, quarterly, half-yearly or yearly basis. You can choose the repayment tenure according to your preference.

  • ✔️Does my credit score influence the interest rate on my gold loan?

    While it’s not compulsory to have a 750+ credit score to avail a gold loan, a higher credit score does affect the interest rates and the eligibility of your loan amount. You can choose to get your free CIBIL score here.

  • ✔️ What are the other fees involved in availing a gold loan?

    The other charges applicable on your gold loan include processing fees, stamp duty, cash handling charges, penal interest, and auction charges. These charges vary based on the location from where you are availing the gold loan.