Steps to know gold loan foreclosure charges online

Read this article and follow the steps given below to know your gold loan foreclosure charges online
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Steps to know gold loan foreclosure charges online
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3 min
10-September-2024

Foreclosing a gold loan involves repaying the outstanding loan amount before the end of the loan tenure. This option can be financially beneficial as it helps save on interest costs and offers other advantages, such as improving your credit score and getting complete control of your gold. Bajaj Finance, like other financial institutions, applies specific foreclosure charges when you choose to repay your gold loan early. Understanding these charges and the benefits of foreclosing your loan can help you make informed financial decisions. For more information, visit gold loan details.

Gold loan foreclosure charges by Bajaj Finance

Bajaj Finance imposes foreclosure charges on gold loans if you decide to repay the loan before the agreed tenure. These charges are designed to compensate for the interest income that the lender loses due to early repayment. The table below provides a detailed breakdown of these charges:

Loan Tenure

Foreclosure Charges

Within 3 months

3% of the outstanding principal

After 3 months

2% of the outstanding principal


For instance, if you foreclose your loan within the first three months, a charge of 3% on the outstanding principal amount will apply. If you foreclose after three months, the charge reduces to 2%. It is crucial to consider these charges when planning to repay your gold loan early.

Benefits of foreclosing your gold loan

  • Foreclosing your gold loan ahead of the scheduled tenure offers several benefits:
  • Save on interest payments: By closing the loan early, you reduce the amount of interest that would accrue over the remaining tenure, potentially saving a significant sum of money.
  • Full ownership of pledged gold: Repaying the loan early allows you to reclaim full ownership of your pledged gold sooner, giving you the flexibility to use or sell your gold as needed.
  • Improve credit score: Timely and early repayment of loans positively impacts your credit score, enhancing your creditworthiness for future financial needs.

These benefits make gold loan foreclosure an attractive option for borrowers who have the means to repay their loan early.

How to foreclose gold loan in Bajaj Finserv?

  • Foreclosing your gold loan with Bajaj Finserv is a straightforward process. Here’s a step-by-step guide on how to complete the foreclosure:
  1. Log In to your account: Access the Bajaj Finserv website or mobile app and log in using your credentials.
  1. Click on ‘Account’: Once logged in, click on ‘Account’ section to view your active loans.
  1. Select gold loan: Choose the gold loan account that you wish to foreclose.
  1. Check outstanding amount: Verify the outstanding principal amount and any applicable foreclosure charges.
  1. Make payment: You can repay the outstanding amount online through the Bajaj Finserv portal. Choose from various payment methods such as net banking, UPI, or debit card.
  1. Confirm payment: Follow the prompts to complete the payment. Ensure that you receive a confirmation of the transaction.
  1. Collect your gold: Once the payment is confirmed, Bajaj Finserv will release your pledged gold. You can collect it from the branch where it was initially pledged.

Alternatively, you can visit a Bajaj Finserv branch to complete the foreclosure process in person. Ensure to carry necessary identification and loan documents for verification. For more detailed instructions, visit gold loan payment online.

Foreclosing your gold loan can be a beneficial financial move, provided you are aware of the associated charges and follow the correct procedures. By planning ahead and utilizing the resources available through Bajaj Finserv, you can manage your finances effectively and reclaim your pledged gold promptly.

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Frequently asked questions

Is early repayment of your Gold Loan a good idea?
Early repayment of your gold loan can be a good idea if you aim to save on interest costs and improve your financial standing. By repaying the loan before its tenure ends, you can significantly reduce the total interest payable, leading to substantial savings. Additionally, early repayment helps improve your credit score, as it demonstrates financial responsibility and timely repayment habits. However, it's important to consider any foreclosure charges that may apply and weigh them against the potential savings on interest.

How can I get my gold loan statement?
To get your gold loan statement, you need to log into your account on the Bajaj Finserv website or mobile app. Once logged in, navigate to the ‘My Account’ section and select the gold loan option from your dashboard. There, you will find the option to view or download your gold loan statement, which provides a detailed overview of your loan transactions and current status.

What is the process to close a gold loan online?
Closing a gold loan online with Bajaj Finserv involves a straightforward process. First, log into your account on the Bajaj Finserv website or mobile app. Once logged in, go to the ‘My Account’ section to view your active loans and select the gold loan account you wish to close. Verify the outstanding principal amount and any applicable charges. Proceed to make the payment using net banking, UPI, debit card, or other available payment methods. After completing the transaction, ensure you receive a confirmation. Once the payment is confirmed, Bajaj Finserv will release your pledged gold, which you can collect from the branch where it was initially pledged. This process allows you to efficiently close your gold loan without needing to visit a physical branch.

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