What is the stamp duty on gold loans?

Stamp duty on gold loans is a government fee that you pay for the legal documentation and execution of your loan agreement. The exact amount you’ll be charged depends on the state where you take the loan, as stamp duty rates are set by individual state governments and not by central authorities. In most states, the stamp duty for gold loans is quite nominal—often calculated as a small percentage of the total loan amount, typically ranging from 0.1% to 0.2%. Some states may have a fixed fee instead of a percentage, and in a few cases, there may be exemptions for gold loans up to a certain limit.

For example, if you take a gold loan of ₹1,00,000, the stamp duty could be as little as ₹100 to ₹200, depending on your state’s rules. This fee is usually deducted upfront from your loan amount, so you receive the net disbursal after all charges. The purpose of stamp duty is to make your loan agreement legally valid and enforceable.

It’s important to remember that these rates can change, and there may be additional minor charges depending on the lender’s practices and local regulations. Before you finalise your gold loan, always ask your lender for a clear breakdown of all fees, including stamp duty, so you know exactly what to expect and can plan your finances accordingly.