Is there any processing fee for gold loans per gram?

Yes, most lenders do levy a processing fee when you take a gold loan, including those calculated per gram of gold pledged. The processing fee is usually either a small percentage of the total loan amount or a fixed sum, depending on the lender’s policies. For example, some lenders might charge up to 1% or 2% of the sanctioned loan amount as a processing fee, while others might have a fixed charge that varies with the size of your loan. This fee is meant to cover the administrative work involved in evaluating your gold, processing your application, and disbursing the funds.

In addition to the processing fee, one can encounter other related charges. These can include valuation fees for assessing the purity and weight of your gold, documentation charges for preparing the loan agreement, and applicable GST on these services. Some lenders might also apply charges for safe keeping of your gold, renewal of the loan, or even for releasing your gold on closure of the loan.

It is important to ask your lender for a detailed breakdown of all applicable fees and charges before you proceed. This will help understand the total and final cost of borrowing and avoid any surprises later. Reviewing the fee structure in advance ensures you make an informed decision and can plan your finances accordingly.