Gold loan is one of the easiest and most hassle-free ways of financing. If you have 18-22 karat gold jewellery to pledge as collateral, you do not need any credit history or CIBIL Score to avail of the loan. With Bajaj Finserv Gold Loan, you can avail of a loan starting from Rs. 5,000 up to Rs. 2 crore, depending on your gold's value and purity. This loan option is available at an attractive interest rate, starting from 9.50% per annum.
The best part about gold loans is that they are secured loans, which means you do not have to meet strict eligibility criteria or provide a guarantor to avail of them. Also, unlike unsecured loans, which can have high-interest rates, gold loan interest rates are relatively low and affordable. Bajaj Finserv also offers free insurance of gold to safeguard your precious jewellery from theft or misplacement.
Moreover, you can also use the free online Bajaj Finserv Gold Loan Calculator to know the amount you can borrow against your gold jewellery, before applying for a loan.
Read also: How to increase CIBIL Score with a Gold Loan
Relation between gold loan and your CIBIL Score
In India, a CIBIL Score is a crucial factor in determining your creditworthiness and loan eligibility. It is calculated based on your credit history, loan repayment history, credit card utilisation, and other factors. If your CIBIL Score is good, you are considered a low-risk borrower, and you can avail of loans at attractive interest rates.
But a fact still unknown to many is that taking a gold loan can help you improve your CIBIL Score and build a positive credit history with on-time loan repayment.
To improve your CIBIL Score by taking a gold loan, here are a few tips to follow:
- Choose a reliable lender: Firstly, choose a reliable lender, which offers gold loans at competitive interest rates with benefits like free insurance of gold and no credit dependency.
- Evaluate loan terms: Assess the loan terms and conditions, including the interest rate, tenure, and repayment schedule. Ensure that you can comfortably repay the loan within the agreed-upon timeframe to avoid any negative impact on your credit score.
- Borrow responsibly: Take a gold loan amount that you can manage to repay without straining your finances. Borrowing beyond your repayment capacity can lead to default, negatively affecting your credit score.
- Make timely repayments: Always make timely repayments of your loan instalments. This will help improve your repayment history and boost your CIBIL Score.
- Avoid over-leveraging on gold: Do not over-leverage on your gold assets, as it can lead to financial strain and affect your CIBIL Score negatively in case of default.
Remember, improving your credit score takes time and consistent responsible financial behaviour. Taking a gold loan and managing it effectively is just one aspect of building good credit. Alongside this, ensure you practice other healthy financial habits like paying bills on time, keeping debt levels manageable, and avoiding unnecessary credit applications.
So, if you are seeking to enhance your creditworthiness while meeting your financial needs, a gold loan can be an effective tool for boosting your CIBIL Score.
To apply for a gold loan, simply visit a nearby Bajaj Finance branch or choose the convenience of applying online through the Bajaj Finance website. Follow these easy steps to apply:
- Step 1: Visit the Gold Loan section of the website
- Step 2: Click on the online application form
- Step 3: Enter your 10-digit mobile number and click on ‘GET OTP’
- Step 4: Enter OTP to verify your details
- Step 5: Select your state and city to locate your nearest branch
- Step 6: Enter your full name and date of birth as per your PAN
- Step 7: Set up your appointment at the nearest branch in your city
Apply now and manage your expenses with an instant gold loan from Bajaj Finserv.
