What is byaj on a gold loan?
In Indian jewellery shops and pawn counters, byaj means the interest charged on money lent against pledged gold. Most shops quote a monthly interest rate — for example 1.5% or 2% per month on the principal. The total you collect depends on whether you use simple interest (on original principal only) or compound interest (where unpaid interest may add to the balance).
Getting the math right protects your margin and builds customer trust. A free online calculator lets you quote accurately before opening a loan in your ledger.
When to use simple vs compound interest
Simple interest suits short pledges where interest is calculated only on the original loan amount. Compound interest applies when your agreement rolls unpaid interest into the balance each month — common in longer-duration girvi or pledge books.
Always match the calculator mode to your written customer agreement. Use our simple interest calculator and compound interest calculator for side-by-side estimates.
Free ByajBazaar calculators (no signup)
ByajBazaar offers completely free calculators — not a trial:
- Byaj calculator — toggle simple or compound modes
- Gold loan interest calculator — tailored for pledged gold
- Daily interest calculator — per-day byaj for short pledges
- EMI calculator — instalment-style repayments
- All calculators hub
Enter principal (loan amount), monthly rate, and tenure in months. Results update instantly in your browser — no payment, no subscription.
From calculator to full loan book
One-off calculations are fine at the counter, but growing shops need customer records, due dates, reminders, and reports. Sign up free on ByajBazaar to store loans, track repayments, manage inventory with barcodes, and run POS billing — all features included forever at zero cost.
Whether you run a single counter in a tier-2 city or a multi-branch book, accurate byaj calculation is the foundation. Start with the calculator, then scale with free software.