Bank Of Baroda Jewel Loan Interest Rate - November 2023


In times of financial need, individuals often turn to their valuables for assistance.

Gold, a cherished possession that holds both sentimental and monetary value, can serve as a source of liquidity through jewel loans.

Bank of Baroda, a prominent financial institution in India, offers attractive jewel loan interest rates, making it an appealing option for those seeking to leverage their gold holdings.

What is a Jewel Loan?

A jewel loan, also known as a gold loan, is a secured loan where individuals pledge their gold ornaments as collateral to acquire funds.

The loan amount is determined by the value of the gold pledged, and the interest rate is applied to the loan amount for the specified repayment period.


What are the Interest Rates for Bank of Baroda Jewel Loans?

Bank of Baroda offers competitive interest rates for jewel loans, ranging from 8.85% to 9.6% per annum.

The actual interest rate offered to an individual may vary depending on several factors, including the loan amount, loan tenure, gold purity, and the applicant’s credit history.

How are Bank of Baroda Jewel Loan Interest Rates Calculated?

The interest rate for a Bank of Baroda jewel loan is calculated based on the following factors:

  • Loan Amount: The interest rate is applied to the total loan amount sanctioned.
  • Loan Tenure: The interest rate is calculated for the specified repayment period, typically ranging from 12 months to 60 months.
  • Gold Purity: The purity of the pledged gold plays a significant role in determining the interest rate. Higher purity gold commands lower interest rates.
  • Applicant’s Credit History: A good credit history can lead to lower interest rates, while a poor credit history may result in higher interest rates.

Factors Affecting Bank of Baroda Jewel Loan Interest Rates

Several factors can influence the interest rates offered on Bank of Baroda jewel loans:

  • Market Fluctuations: Gold prices are subject to market fluctuations, and interest rates may adjust accordingly to maintain a balance between loan value and gold value.
  • Bank’s Internal Policies: The bank’s internal policies and risk assessment strategies also play a role in determining interest rates.
  • Competitive Landscape: The competitive landscape of the financial market influences interest rates, as banks strive to attract customers with competitive offerings.

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