Gold Loan Charges Explained: A Complete Breakdown for First-Time Borrowers
Know every gold loan charge at Capri Loans — processing fee, penal charges, foreclosure, part-payment, GST and more. No valuation fees, no locker rent. Full breakdown.
Updated June 4, 2026
Gold loan charges are the fees you pay in addition to the interest on your gold loan — such as processing fees, late payment penalties, foreclosure charges, and GST. Understanding these costs upfront helps you avoid surprises and pick the best lender for your needs.
If you're thinking about getting a gold loan for the first time, you might feel overwhelmed by all the different fees and fine print. This guide makes gold loan charges clear so you can compare lenders confidently and borrow smartly.
Why Understanding Gold Loan Charges Matters
Many first-time borrowers focus mainly on the interest rate, but gold loan interest and charges go far beyond that. If you don't know about all the add-on fees, the total cost can end up higher than you planned.
Knowing about gold loan hidden charges is especially important because it helps you avoid unexpected expenses, find a lender with fair and transparent pricing, and plan your repayments accurately.
Main Types of Gold Loan Charges at Capri Loans
Here is the confirmed schedule of charges at Capri Loans, sourced from official documents:
Charge Type | Amount | When Charged |
Processing Fee | Nil to 0.25% of loan amount + GST (varies by scheme) | One-time, at loan approval |
GST | 18% on all applicable fees | Added to each applicable charge |
Penal Charge | 3% per month on outstanding dues | Only when repayment is overdue after loan tenure expires |
Tenure Extension Charges | 0.15% of principal outstanding + GST | When extending the loan tenure |
Mark to Markup (MTM) Charges | ₹500 per incident | Only when LTV exceeds |
Pre-Auction Charges | ₹200 per incident | Before auction proceedings |
Post Auction Charges | ₹1,500 per loan account | After auction |
Cash Handling Charges | ₹25 or 0.25% of cash transaction value incl. GST (whichever is higher) | On cash transactions |
Franking Charges | As per state law including cess | At loan documentation stage |
Monthly SMS Charges | ₹7 inclusive of GST | Monthly |
Statement of Account | Digital: Free. Physical: ₹50 + GST (once per day) | On request |
Foreclosure Charges | 0–5 days: 2% + GST 6–10 days: 1% + GST >10 days: 0% | If closing loan early |
Part-Payment Charges | 0–5 days: 2% + GST 6–10 days: 1% + GST >10 days: 0% | On partial repayments |
Part Release Charges | Below:
| When releasing partial gold |
Important: Valuation/appraisal charges and locker rent are not applicable at Capri Loans. If you see these listed by another lender, ask for clarification before signing.
1. Gold Loan Processing Fee
At Capri Loans, the processing fee ranges from nil to 0.25% of the loan amount plus GST, depending on the scheme. Always confirm which scheme applies to your loan and whether the processing fee is included or separate.
2. Penal Charges — When Overdue Charges Apply
Repayment at Capri Loans works on simple interest — you pay interest as per schedule and can repay the principal anytime during the tenure. Penal charges apply only when dues remain unpaid after the loan tenure expires, as per the applicable Key Fact Statement and loan agreement.
3. Foreclosure and Part-Payment Charges
If you repay the loan before the tenure ends, foreclosure charges apply on a sliding scale. If you repay after 10 days of the applicable repayment schedule, the charge is 0% — meaning no penalty for early closure beyond that window. The same structure applies for part-payments.
4. GST on Gold Loan Charges
GST at 18% is applied on all applicable fees and charges — not on interest. For example, if your processing fee is ₹500, you pay ₹590 after GST. Always factor this into your total cost calculation when comparing lenders.
Practical Tips: How to Avoid Hidden Costs on Your Gold Loan
Always ask for a written fee breakdown before signing — do not accept "standard charges" without numbers
Ask specifically whether processing fee is nil or a percentage for your loan amount and scheme
Confirm there are no valuation or locker charges — these do not apply at Capri Loans
Factor in GST on all applicable charges when comparing total cost across lenders
Check foreclosure conditions — at Capri Loans, early closure after 10 days carries no charge
How to Compare Lenders and Choose the Best Gold Loan Offer
Getting a suitable gold loan offer is not just about the advertised rate. Here's what to check:
Processing fee — confirm whether nil or a percentage applies to your loan
Confirm no valuation or locker charges are being added
Check foreclosure and part-payment terms — especially the day-based charge grid
Verify the penal charge structure — understand when it applies (post-tenure, not monthly)
Compare the effective total cost, not just the headline interest rate
All good lenders will share a written cost sheet before disbursing the loan. If not, consider it a red flag.
Common Mistakes to Avoid with Gold Loan Fees and Charges
Not factoring GST — always add 18% to quoted charges to know your actual liability
Assuming valuation charges and locker rent are standard — they are not applicable at Capri Loans
Judging only on interest rate — processing fees and other charges affect total cost
Misunderstanding penal charges as a monthly missed-payment fee — they apply only after tenure expires
Not checking the foreclosure charge grid — early repayment after 10 days costs nothing at Capri Loans
Conclusion: The Smart Approach to Gold Loan Charges
Gold loans are fast and convenient, but knowing the full list of charges is crucial. At Capri Loans, applicable charges are disclosed upfront in the Key Fact Statement. Repayment works on simple interest, and charges such as processing fees, foreclosure charges, part-payment charges, GST and other applicable fees may vary by scheme and loan terms. Always confirm the latest charges at the branch before signing.
Don't be shy about asking questions or requesting a full fee statement. Compare, calculate, and only borrow once you're clear on all the numbers.
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Frequently Asked Questions
Charges may include processing fees, GST, tenure extension charges, foreclosure or part-payment charges and other applicable fees as per the current schedule. All applicable charges are disclosed in the Key Fact Statement before signing.
Add the processing fee, applicable GST at 18%, and any other charges from the schedule. Interest is calculated on a simple-interest basis. Use the Capri Loans calculator at the branch or online to estimate your total outflow.
No. All charges are disclosed upfront in the Key Fact Statement (KFS) shared before you sign. Valuation charges and locker rent — common at some lenders — are not charged at Capri Loans.
The processing fee may vary by scheme, loan amount and applicable terms. Confirm the exact fee at the branch and review the Key Fact Statement before signing.
No. Valuation and appraisal charges are not applicable at Capri Loans. Gold valuation is carried out by certified Gold Valuers at the branch at no separate charge to the borrower.
Yes. GST at 18% is applied on all applicable fees and charges — not on interest. Factor this into your total cost comparison across lenders.
Foreclosure charges apply on a sliding scale: 2% + GST if repaid within 0–5 days of the applicable schedule, 1% + GST for 6–10 days, and 0% after 10 days. Repaying after 10 days carries no foreclosure charge.
