From paying rent and salaries to investing in inventory and equipment, it can be a challenge to keep up with all the financial demands of your business. Luckily, there are many financing options available to help you manage these expenses, including loans, and credit cards. But with so many choices, it can be hard to know which one is right for you. This is where gold loans can be an attractive option for you as a business owner.
With a gold loan, you can leverage the value of your gold jewellery to access quick and easy financing from Rs. 5,000 up to Rs. 2 crore. Compared to other forms of lending, gold loans typically offer lower interest rates, and multiple repayment options, making them a cost-effective way to manage your cash flow.
Keep reading to know how taking a gold loan can help you meet your business expenses.
Low gold loan interest rates
One of the key advantages of a gold loan is that it typically comes with a low rate of interest compared to unsecured loans like personal loans. This is because the gold acts as a security for the lender, reducing the risk involved. Bajaj Finance offers gold loans interest rates as low as 9.50% per annum, making it a great option for obtaining funds without the burden of high interest rates.
Transparent evaluation
When it comes to evaluating your gold for a loan, transparency is key. That is why we use the best-in-class karat metres to ensure you get the highest value for your gold. The loan-to-value (LTV) ratio for gold loans is set at 75%, as per RBI regulations. This means that you can get a loan amount of up to 75% of the value of your gold.
Easy eligibility
Another major benefit of choosing a gold loan is that it has simple eligibility requirements. Unlike traditional loans, you do not need to worry about your credit history or CIBIL Score. Lenders only require your KYC documents, such as your Aadhaar Card, voter ID card, passport, or driving license.
Before applying for a loan, you can use our free online gold loan calculator to get an idea about the loan amount you will need based on the weight of your gold jewellery. With just a few simple inputs, the calculator can provide an estimate of how much money you can borrow and at what interest rate.
Quick approval and disbursal
Often, when you are facing a financial emergency involving your business, you might not have the time for a lengthy loan application and approval process. Luckily, gold loans for business offer a convenient solution.
As long as you are an Indian citizen aged between 21 to 70 years with 18-22 karat gold jewellery, you are eligible to apply for a gold loan. All you need is your gold loan documents, that includes your basic KYC documents, and you are good to go.
Multiple repayment options and part-release facility
Bajaj Finance also provides customers with a great deal of flexibility when it comes to repayment. You can repay the loan in a number of ways and at your own pace. You can choose to pay your interest monthly, bi-monthly, quarterly, half-yearly, or annually.
With our part release facility, you can also pay back a part of your loan and get some of your gold jewellery back before the end of your tenure. Other features include no foreclosure or pre-repayment fee, which can greatly reduce your credit repayment charges.
Maximum protection for your valuables
You may sometimes worry about the safety of your gold jewellery when offering it as collateral. Bajaj Finance ensures the safety of your gold jewellery when used as collateral. With over 800 branches across the country, strict protocols are followed to safeguard your valuables.
Whether it is to buy more inventory or for manage your dues, a Bajaj Finserv Gold Loan can be more than handy when it comes to your business expenses. Now that you know how convenient a gold loan is, give your business a boost just by using the idle equity in your gold asset.
