What you need to know
Besides interest, gold loans carry processing, valuation and sometimes renewal charges. All fees must be included in the APR shown in the Key Facts Statement.
Lender-wise fees
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Indian Bank Jewel Loan | About 0.25% + GST | No charge on floating-rate loans to individuals |
| PNB Gold Loan | 0.30% of loan or ₹500, whichever is higher, + GST | No charge on floating-rate loans to individuals |
| Muthoot Finance Gold Loan | Service/processing charges vary by scheme; security charge 0.15% (₹100 – ₹1,000) | Part payment and closure allowed any time; interest charged for the period used |
| HDFC Bank Gold Loan | Up to 1% of loan + GST; valuation ₹250 – ₹575 | Pre-closure charge up to 1% on some fixed-rate variants — check the KFS |
| SBI Gold Loan | 0.25% + GST (min ₹250); waived on some bullet variants | No prepayment charge on floating-rate loans; bullet loans can be closed any time with interest to date |
| IIFL Finance Gold Loan | Up to 2% + GST depending on scheme | No part-payment or foreclosure charge (minimum 7 days’ interest) |
| Axis Bank Gold Loan | ₹300 up to ₹2 lakh; 0.50% + GST above ₹2 lakh | As per sanction terms; no charge on floating-rate loans to individuals |
| Manappuram Finance Gold Loan | Processing ₹25 + tax; insurance ₹25 | Close any time; interest for the days used |
Typical charges
| Charge | Typical range |
|---|---|
| Processing fee | ₹25 flat to 2% of loan + GST |
| Valuation / appraisal | ₹250 – ₹575 at some banks |
| Renewal | Fee similar to processing fee |
| Penal interest | Typically 2% p.a. on overdue amounts |
| Auction charges | Recovered from sale proceeds (e.g. ₹1,500) |
| Foreclosure | Nil on floating-rate loans to individuals; minimum interest period at some NBFCs |
Frequently asked questions
Is GST charged on fees?
Yes, 18% GST applies to processing and other service charges.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.