Compared with its peers, gold loans attract relatively fewer charges. A few of them are:

1. Loan processing charge: This is the charge a bank or NBFC will charge you for processing your loan application. However, some banks and NBFCs waive off these charges for more business.

2. Valuation charge: This is the charge a customer pays to a bank or an NBFC for apprising the value of your physical gold. Few lenders have in-house valuators and hence, do not charge any extra amount for the valuation.

3. Late payment penalty: Most lenders charge late payment penalties. These penalties, however, vary across lenders.

4. Pre-payment penalty: This is one charge most borrowers are unaware of. Not all lenders levy this charge, but it is important to know if you will be penalised for early repayment

Hence, it is of utmost importance that you read the terms and conditions of your loan before you finalize it. No charge should come as a surprise for it as it could leave a bitter taste in your mouth with respect to the entire experience.