What Are the Interest Rates and Fees for Gold Loans Used for Business Expansion?
- Posted:28th March, 2025
- Updated:28th March, 2025
ShareShare
https://www.shriramfinance.in/financial-faq-what-are-the-interest-rates-and-fees-for-gold-loans-used-for-business-expansion
Gold loans for business expansion usually have lower interest rates than other business funding forms, making them an attractive financing option.
| Types of fee | Applicable charges |
| Interest rates | Interest rates for gold loans typically start around 9% per annum but can vary significantly based on lender policies, the loan amount, tenure, quality of gold collateral, and the applicant's creditworthiness. |
| Processing fees | Processing fees can typically be up to 5%, though some financial institutions may specify a minimum fee. |
| Stamp duty (as per respective state) | It is payable according to state laws and deducted upfront from the loan amount. |
| Cash handling charges | It may be applicable for cash disbursement only. |
| Penal charge | Penal interest rates may apply in case of delayed EMI payments. |
| Convenience fee | A convenience fee may be levied for the release of pledged jewellery. |
| Part-prepayment charges | Part-prepayment charges may vary significantly among lending institutions. Overall, many loan providers are moving towards more borrower-friendly policies by eliminating part-prepayment fees, which can significantly benefit those looking to manage their loan repayment more effectively. |
| Foreclosure charges | Many financial institutions may or may not charge foreclosure fees if the loan is repaid before tenure. |
When applying for a gold loan for business expansion, it is advisable to review and understand the specific terms and conditions associated with each loan provider. Read all terms and calculate the total costs involved before taking a loan. Opt for loan providers with lower interest rates and minimal charges to maximize benefits.
Popular FAQs
- What is a Gold Loan for Women and How Does It Differ from Regular Gold Loans?
- How Does a Gold Loan for Education Compare with Other Education Financing Options?
- Can I Use a Gold Loan for Both Domestic and International Education Expenses?
- What Are the Interest Rates and Terms for Gold Loans Used for Education?
- What Documents Are Required to Apply for a Gold Loan for Education?
- How Much Can I Borrow with a Gold Loan for Education?
- What Are the Eligibility Criteria for a Gold Loan for Education?
- What is a Gold Loan for Education and How Does It Work?
- What Are the Alternatives to Gold Loans for Business Expansion?
- What Happens if My Expansion Plans Face Challenges?
Recent FAQs
- What is a Fixed Deposit?
- Does FD pay monthly interest?
- Will I have to pay a penalty to withdraw FD before its time?
- Can I Start an FD online?
- Which Type of FD is Best?
- Can I Deposit 10 Lakhs in FD?
- Does FD Renew Automatically?
- How can I break my FD without penalty?
- What is the maximum time limit of FD?
- Does FD have a lock-in period?
Get a gold loan at low interest rates
Most Viewed FAQs
- How to Claim the Fixed Deposit Amount After Death?
- What happens if a Loan against FD is not paid?
- Can I Get a Gold Loan for Medical Purposes?
- What is the Maximum Tenure for a Gold Loan for Agricultural Purposes?
- Can I Get a Gold Loan for Educational Purposes?
- Can I Get a Gold Loan for Travel Purposes?
- What happens if the depositor passes away?
- What is the Maximum Loan Amount That Can Be Availed by Pledging Gold?
- Can I Get a Gold Loan for Home Renovation Purposes?
You may be interested in
- Home
- Financial FAQs
- What Are the Interest Rates and Fees for Gold Loans Used for Business Expansion?
