What is a gold loan?
A gold loan is a secured loan where individuals pledge their gold jewellery as collateral to access funds. Lenders determine the loan amount based on the gold’s value, offering competitive gold loan interest rates. With multiple repayment options, borrowers can benefit from quick and convenient financing without selling your precious gold jewellery, making it ideal for business, medical emergencies, or personal needs.
Eligibility criteria and documents required for a gold loan
To avail of a gold loan with Bajaj Finance, applicants must meet the following eligibility criteria for gold loan. The primary requirement is that the borrower must be an Indian citizen aged between 21 and 70 years. Additionally, the pledged gold must be in the form of jewellery, with a purity of 18-22 karats. Unlike unsecured loans, a gold loan does not require a high credit score, making it an accessible option for individuals across different financial backgrounds.
The documentation process for a gold loan is simple and hassle-free. To avail a gold loan, borrowers need the following documents required for gold loan:
- Aadhaar card
- Voter ID
- Passport
- Driving licence
- NREGA job card
- Letter from NPR
Since gold loans are secured by collateral, you don’t require credit details. The minimal documentation requirement ensures quick loan processing, allowing borrowers to secure funds easily for their immediate financial needs.
How to apply for a gold loan
Applying for a gold loan is a straightforward and fast process, designed to help borrowers get immediate access to funds. Borrowers can either visit a lender’s physical branch or opt for an online application to initiate the process.
Here’s how to apply for a gold loan with Bajaj Finance:
- 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-principle loan eligibility letter.
Once done, you will receive a call from our representative and guide you on the next steps.
Benefits of applying for a gold loan with Bajaj Finserv
Bajaj Finance provides multiple advantages for borrowers seeking gold loans. These benefits make it an attractive choice for individuals looking to leverage their gold jewellery for financial support.
1. High loan amount of up to ₹2 crore
We offer instant gold loans starting from Rs. 5,000 up to Rs. 2 crore. You can choose the amount that suits you best from the offer extended to you.
2. Convenient repayment options
We offer multiple gold loan repayment options where you may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual 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.
3. Quick loan disbursal
With minimal documentation and a simple verification process, loan disbursal takes only 24 hours, ensuring that funds are available when needed.
4. Secure gold storage
Our free insurance covers against theft or misplacement of your gold jewellery while it is in our custody. The pledged gold is stored in high-security vaults, ensuring maximum safety.
5. Part-release facility
With our gold Loan part release facility, you can repay a part of your loan and take part of your gold jewellery back before the end of your loan tenure.
Additionally, the loan application process is hassle-free, with options for both online and offline applications. Borrowers can also use a gold loan calculator to estimate their repayment schedule before applying.
Gold loan interest rates and repayment options
The gold loan interest rate determines the overall cost of borrowing against gold. Bajaj Finance offers competitive interest rates on gold loans, starting from 9.50% per annum. The final rate depends on factors such as gold purity, loan tenure, loan amount, and the borrower’s profile.
Factors affecting gold loan interest rate:
- Loan amount – Higher loan amounts may have different interest rate slabs. With us, you can get loans up to Rs. 2 crore, providing flexibility to borrowers.
- Gold purity and value – Higher-purity gold results in a better loan-to-value (LTV) ratio, affecting the interest rate.
- Repayment tenure – Shorter tenures generally have lower interest costs, while longer tenures provide repayment flexibility.
- Market fluctuations – Interest rates can also be influenced by the gold market price trends.
Repayment options for gold loans:
Choosing the right repayment option ensures manageable financial burden. Borrowers can use an online gold loan interest rate calculator to determine their repayment schedule and interest cost before availing of a loan. With Bajaj Finance, you can choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual 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.
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.
Frequently asked questions
Any Indian citizen, aged between 21 and 70 years, whether salaried, self-employed, a trader, farmer, or a businessperson, can apply for a gold loan. All you need is your 18-22 karat gold jewellery and your basic KYC documents for gold loan.
Bajaj Finance offers gold loan at competitive rates of interest. Our fees and charges are transparent and kept minimum so that you have to pay less upfront. Our gold loan interest rate starts from just 9.50%* per annum.
At Bajaj Finance, the minimum gold loan amount you can apply for is Rs. 5,000. This low entry point ensures that individuals with varying financial needs can access funds by leveraging their gold assets. The loan amount you are eligible for depends on the purity and weight of the gold you pledge, as well as the prevailing market rates. Bajaj Finance offers loans up to 75% of your gold’s value, in line with RBI guidelines, with a tenure of up to 12 months. This flexibility makes gold loans a viable option for both small and substantial financial requirements.
Bajaj Finance ensures a swift approval process for gold loans, typically disbursing funds within few hours. The streamlined procedure involves minimal documentation and a straightforward gold evaluation, allowing for quick access to funds. This efficiency makes gold loans an excellent choice for urgent financial needs, providing a hassle-free experience from application to disbursal. The prompt service ensures that borrowers can address their financial requirements without unnecessary delays.
Bajaj Finance offers multiple repayment options to suit diverse financial situations. Pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis, with the principal amount due at loan maturity.
These flexible options allow you to select a repayment method that aligns with your financial planning and cash flow, ensuring a manageable and convenient loan repayment experience.
