How does a gold loan work?
What is gold loan: A gold loan is a type of secured loan, where individuals borrow money by pledging their gold as collateral. The lender determines the loan amount based on the gold's value. It provides quick access to funds without extensive documentation, offering lower interest rates due to the collateral.
Read Also: How to get a quick loan against gold jewellery
A gold loan is a simple and efficient way to meet immediate financial needs by leveraging the value of your gold jewellery or ornaments. The process of obtaining a gold loan is straightforward, with key factors like the gold loan interest rate, and the use of a gold loan calculator playing vital roles.
Getting a loan against your gold jewellery is one of the easiest ways to meet any unplanned expense. To get a gold loan from Bajaj Finserv, you can apply online, and we will call you and guide you on the next steps or you could simply visit the nearest gold loan branch in your city. To apply for an online gold loan, you need to follow the below mentioned steps:
- Click on ‘APPLY’ to open our online application form
- Enter your 10-digit mobile number and click on ‘GET OTP’
- Submit the OTP to verify your identity
- Select your state and city to find the branch nearest to you
- Enter your full name and date of birth as per your PAN
- Set up your appointment at our branch
Once done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.
What are the gold loan interest rate and charges?
We offer one of the lowest gold loan interest rates, starting at just 9.50% per annum. To see the complete list of charges on gold loan, please visit gold loan fees and charges page.
What are the documents required for a gold loan?
The list of gold loan documents is limited to just proof of identity and proof of address. To avail of a gold loan you just need any one of your basic KYC documents for gold loan like:
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by National Population Registration
Who is eligible to apply for a gold loan?
Gold loan eligibility criteria are easy to meet. You simply need to be an Indian citizen aged between 21 and 70 years. Make sure that your gold jewellery is of 18-22 karat before you complete your gold loan application.
What are the benefits of gold loan?
- Low interest rate: It is important to remember that high-interest rates can lead to a higher repayment amount in the long run. With Bajaj Finance you can get a loan against your 18-22 karat gold jewellery with interest rates starting at just 9.50% p.a.
- High loan amount: Know the current market value of your gold to avoid borrowing more than necessary. Consider the per gram rate of gold, as it determines the amount you can borrow against your gold jewellery.
- Multiple repayment options: Look for lenders offering multiple repayment for gold loan schedules to suit your financial capabilities. You can choose to pay your loan interest monthly, bi-monthly, quarterly, half-yearly or annually.
- Security measures: We offer free insurance of gold to cover your pledged gold jewellery against theft and misplacement. With our comprehensive security measures to safeguard your pledged gold, your gold jewellery is kept safe in secure vaults with constant surveillance.
- No part-prepayment or foreclosure charges- We do not charge any additional amount for part-prepayment or foreclosure of your gold loan. However, in case you close the loan within 7 days of booking, minimum 7 days interest is charged.
Read Also: How can a gold loan help you start a small business
Gold Loan Tenure: Understanding the Duration and Terms
A gold loan, also known as a loan against gold, is a secured loan where borrowers pledge their gold jewellery or ornaments as collateral to receive funds. Understanding the gold loan tenure is crucial to managing repayments effectively. The gold loan meaning encompasses the loan amount, interest rate, and repayment schedule.
Gold loan tenures typically range from a few months to a few years, depending on the lender's policies and the borrower's needs. To understand how does gold loan work, note that you can choose from multiple repayment options. One option is to pay regular EMIs like any other loan. Alternatively, you can opt to pay just the interest monthly, bi-monthly, quarterly, half-yearly, or annually as per your convenience, with the principal amount repaid at the end of the tenure. This flexibility allows borrowers to select a repayment plan that best suits their financial situation and ensures that they can manage their commitments without undue stress. Understanding these aspects helps in choosing the right tenure for your gold loan.
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-approved 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
Gold Loan is a versatile financial tool with no end-use restrictions. Whether it is gold loan for emergency, gold loan for farming, or any unforeseen expenses, gold loans can effectively address both planned and unplanned financial needs.
Bajaj Finance offers a gold loan tenure of up to 12-months, giving you the flexibility to prepay or foreclose the loan according to your preferences. You have the option to repay the loan interest on a monthly, bi-monthly, quarterly, half-yearly, or annually.
Opting for a gold loan over a personal loan offers several advantages. With a gold loan, you leverage your existing gold jewellery for quick funds without the hassle of extensive documentation or stringent credit checks. Moreover, gold loan interest rates tend to be lower, making it a more cost-effective borrowing option.
To get the lowest gold loan interest rates, start by maintaining a good credit score and a solid financial profile, as lenders offer better rates to creditworthy borrowers. Opt for shorter loan tenures, which often come with lower rates. Additionally, check for any special promotions or discounts offered by lenders. Being an existing customer of a bank might also give you access to preferential rates. Ensuring all documentation is complete and accurate can further help secure the best rates.
A gold loan is a secured loan where borrowers use their gold jewellery as collateral to obtain funds. The loan amount is determined based on the current market value and purity of the pledged gold. Gold loans are popular because they offer quick disbursement, minimal documentation, and flexible repayment options. This type of loan is useful for meeting urgent financial needs without selling off valuable gold jewellery.
