What is Gold Metal Loan scheme

Everything you need to know about gold metal loan scheme.
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What is Gold Metal Loan scheme
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2 mins
13 March 2024

What is Gold Metal Loan Scheme?

Gold Metal Loan (GML) is a financial arrangement where jewellery manufacturers borrow gold metal instead of cash and repay the loan using the proceeds from selling their jewellery. This scheme allows domestic jewellery manufacturers to avail of GML for 180 days, while exporters can access it for 270 days.

Features and benefits of gold metal loan schemes

  • Addresses working capital needs for jewellery manufacturers.
  • Offers two types of facilities: Fixed term Gold Metal Loans and Gold Overdrafts.
  • Provides immediate gold delivery with the option to fix the gold price within 180/270 days.
  • Simplifies repayment in equivalent INR.
  • Competitive interest rates ensure borrower-friendly terms.
  • Grants flexibility and convenience for quick fund access.
  • Aids in cash flow management and business expansion.
  • Supports smooth operations in the Gems and Jewellery industry.
  • Ensures reliable service through extensive partnerships with reputable bullion suppliers and logistics firms.
  • Maintains commitment to providing competitive pricing and expedited processing.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

How does the gold metal loan work?

In this scheme, the bank offers working capital funding to jewellery makers with Metal Gold Loans. Jewellers can borrow gold from the bank to make jewellery, which they can then sell in the local market or export.

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