In India, gold loans have gained popularity among individuals who require immediate funds in case of a financial emergency. Gold loans can be a convenient solution as gold jewellery can be quickly converted into cash by pledging it as collateral. The value of gold loans is determined by the current rate of gold in the market. Fluctuations in the market price of gold can have a significant impact on gold loans.
The market price of gold is the main factor in determining the loan amount. When you apply for a gold loan, the weight, purity, and current market value of your gold are taken into account. The gold loan amount is calculated based on the loan-to-value ratio (LTV) set by the RBI. The LTV ratio determines the percentage of your gold's total value that can be borrowed, with most lenders offering a maximum of 75%.
For example, if you pledge gold jewellery with a current value of Rs. 1 lakh, the maximum loan amount you can get is Rs. 75,000. But, if the gold rate increases by 5%, the value of your gold jewellery will be Rs. 1.05 lakh. In this instance, the 75% LTV ratio would be equal to Rs. 78,750, enabling you to borrow a bigger sum to represent the rising worth of your gold.
Bajaj Finance provides gold loans with competitive gold loan interest rates, easy eligibility criteria, and minimal documentation required. The loan amount for a gold loan can be disbursed within a few hours, ensuring quick access to funds. To apply for a quick gold loan, follow these simple steps:
- Visit the Bajaj Finserv Gold Loan page.
- Open the online application form.
- Enter your 10-digit mobile number to get the OTP.
- Submit the OTP to verify your details.
- Select your state and city to locate the nearest branch.
- Enter your full name and date of birth as per your PAN.
- Schedule an appointment at your nearest branch.
