The ability of gold to act as a cushion during financial emergencies has made it a popular investment. Whenever there is an economic crisis looming, you can opt for a secured gold loan, which is a loan against your gold commodities or jewellery. The Bajaj Finserv Gold Loan allows you to obtain a loan of up to Rs. 2 crores for your financial needs, with easy repayment options.
What is a gold loan and how does it work?
A gold loan is a secured loan that allows you to borrow funds by pledging your 18-22 karat gold jewellery as collateral. Bajaj Finance assesses the weight and purity of your gold to determine its market value. Based on this value and the loan-to-value ratio set, after document verification is done, you receive a loan amount.
Once approved, the funds are disbursed quickly, making it an excellent option for urgent financial needs. You can choose to repay the loan through multiple repayment options- monthly, bi-monthly, quarterly, half-yearly, or annually, depending on the repayment terms agreed upon. After full repayment, the pledged gold is safely returned to you. Learn more about a gold loan to meet your immediate cash requirements.
Who is eligible for a gold loan?
A gold loan is one of the most accessible financial products, designed to cater to a wide range of borrowers. Anyone can apply for our gold loan, as long as they meet the basic gold loan eligibility criteria. This includes salaried individuals, self-employed professionals, business owners, and even homemakers who may not have a regular source of income.
Applicants typically need to meet basic criteria, such as being an Indian resident and falling within the age bracket of 21 to 70 years. Minimal documentation further simplifies the process, making it suitable for anyone looking for a quick financial solution. Explore the range of gold loan options available to meet your unique financial needs.
Documents required for a gold loan application
Applying for a gold loan involves minimal documentation, ensuring a quick and hassle-free process. With Bajaj Finance, you’ll only need any one of the following documents to get started. These include:
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by National Population Registration
*PAN card is not required. However, if you apply for a gold loan of Rs. 5 lakh or above you will be asked to submit your PAN card.
These documents are verified during the application process, after which your gold is evaluated. Once the assessment is complete, and the loan terms are agreed upon, you can receive the funds in some time. This straightforward process ensures that a gold loan is one of the fastest ways to secure funds.
Eligibility criteria for gold loan
The gold loan eligibility criteria requirements for a gold loan are simple, making it an accessible financial product for a wide range of individuals. To apply for a gold loan, you must:
- Be the owner of gold jewellery
- Be between the ages of 21 to 70 years
- Provide valid identity and address proof
There is no requirement for income proof or a high credit score, making it ideal for those who may not qualify for unsecured loans. Bajaj Finance offers flexible eligibility terms, ensuring that you can access funds without unnecessary barriers.
Gold loan interest rates and charges
Gold loan interest rates are competitive and determined based on factors like loan tenure, gold value, and repayment terms. Bajaj Finance offers attractive rates with full transparency on all associated charges, ensuring no hidden costs.
Types of fee |
Applicable charges |
Interest rate |
9.50% to 26% per annum |
Processing fees |
0.15% of the loan amount (inclusive of applicable taxes). Subject to a minimum Rs. 99 (inclusive of applicable taxes) and maximum of Rs. 600 (inclusive of applicable taxes). |
Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from loan amount |
Cash handling charges |
%$$Rs. 50 (inclusive of applicable taxes) applicable for cash disbursement only. |
Penal charge |
Rs. 8 per day on Outstanding Balance - Penal charge will be over and above the interest rate slab mentioned above which shall be applicable/chargeable in case of default in repayment of the Outstanding Dues post maturity. |
Convenience fee |
Convenience fee of Rs. 149 (inclusive of applicable taxes) shall be levied for release of ornament/s out of multiple ornaments securing the Gold Loan. |
Part-prepayment charges |
NIL |
Foreclosure charges |
Foreclosure charges are “0”, but in cases the Borrower closes the loan, interest on a pro-rated basis will be applicable. |
Understanding these charges helps you plan your repayment efficiently. Bajaj Finance ensures you get the best deal tailored to your needs. Explore the latest gold loan interest rate options to make an informed decision and secure the funds you need without financial strain.
Step-by-step process to apply for a gold loan
The process to apply for a gold loan is designed to be quick and straightforward, ensuring you receive the funds you need with minimal hassle. Here’s how you can apply:
- Click on “Apply” to initiate online application.
- Enter your 10-digit mobile number and click on “Get OTP.”
- Submit the OTP to verify your identity.
- Fill in your personal details and select the nearest gold loan branch.
- Download In-principal loan eligibility letter.
Once everything is in place, the loan amount is disbursed directly to your bank account, often on the same day. This seamless process ensures that Bajaj Finance makes securing a gold loan a stress-free experience.
How Does Gold Loan Works?
Owning gold provides people with financial security because of its rising market value. Its underlying asset value can command a high price when sold or traded. Fortunately, you do not have to give up your gold ornaments in order to raise money today. Instead, you could opt for a gold loan. The loan amount offered is based on the gold loan per gram rate followed by the lender. You can get a maximum loan of up to 75% of the market value of your gold.
Features and benefits of our gold loan
- High loan amount
Be it unprecedented medical costs or an important home renovation project. Get up to 75% of the value of your gold jewellery and pay for these hefty expenses without any hassle.
- Transparent gold assessment
Your offered loan amount is decided based on the gold’s worth and purity. Your gold jewellery is assessed using our professional-grade carat metres to ensure its authenticity and purity, and give you the best offer possible.
- Easy repayment solutions
You get a range of gold loan repayment options. You may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annually basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
- Industry-best safety protocols
We know that your gold jewellery is not just a precious commodity. There are sentiments attached to these valued items. Therefore, we take the security of your heirlooms very seriously. Your gold valuables are kept in top-of-the-line vaults, with best-in-class security protocols to keep them safe.
- Part-release facility
You do not need to wait for your complete loan to be paid off before releasing your valuables. You can release a portion of the jewellery that was pledged by paying back the equivalent amount.
- Complementary gold insurance
Nobody wants to suffer an unforeseen loss of their valuables. To ensure this, our gold loan comes with complementary gold insurance. Under this policy, your assets are covered against damage, theft and misplacement.
Additional read: Today’s gold rate in India
