Are you in need of quick funds? A gold loan might be the perfect solution for you. With a gold loan, you can unlock the value of your gold jewellery and obtain the funds you require. By using your gold as collateral, you can secure a loan from a trusted lender, ensuring a hassle-free borrowing experience.
Whether you need funds for personal emergencies, education, starting a business, or any other financial requirement, a gold loan can be a flexible and convenient financing solution.
Read to know the benefits of a gold loan, how it works, and how to apply for one.
Quick disbursal
You can benefit from the quick disbursal of funds offered by gold loans, making them an ideal choice for unexpected financial emergencies. By pledging your gold assets as collateral, lenders can swiftly approve and disburse funds based on the market value of your gold.
As per RBI guidelines, lenders typically offer up to 75% of the gold's value, which is calculated based on the gold loan per gram rate. With Bajaj Finance, you can obtain a gold loan in as little as 15 minutes*. You can also use the Bajaj Finance Online Gold Loan Calculator to determine the loan amount you are eligible for.
Attractive interest rates
Due to the secured nature of gold loans, the interest rates offered are generally lower than those of unsecured loans like personal loans. Bajaj Finance offers gold loan interest rates starting at just 9.50% per annum.
No credit score dependency
One of the major advantages of instant gold loans is that they do not rely on your CIBIL Score. Regardless of whether you have no credit history or a low credit score, you can easily obtain these loans based on the value of your gold jewellery.
What is the minimum weight required for a gold loan?
The minimum weight required for a gold loan varies among lenders. However, in general, most lenders set a minimum weight threshold of around 1 gram for gold loans. This means that you can avail a gold loan by pledging gold jewellery or ornaments weighing at least 1 gram.
What kind of gold can be pledged as collateral?
In India, most financial institutions accept gold jewellery as collateral for gold loans. Gold coins, bars, or bullion are generally not accepted by most lenders. When pledging your gold ornaments, ensure that they meet the minimum purity criteria set by the lenders. Typically, lenders approve loans only on gold jewellery with a purity ranging from 18 karats. Also, if ornaments contain precious gems, they will not be considered when determining the loan value. The loan amount will be determined solely based on the weight and purity of the gold.
Easy application process
The eligibility criteria for a gold loan are fairly simple. If you are an Indian citizen aged between 21 to 70 years, you can easily apply by providing your KYC documents. Generally, a voter ID card, Aadhaar Card, passport, driver's licence, along with proof of residency, are sufficient documentation to secure the loan.
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 the 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 handle your expenses with a quick and easy gold loan from Bajaj Finance.
Factors influencing gold loan amount
- Gold quality: The purity and quality of the gold jewellery or assets pledged significantly influence the loan amount. Higher purity gold typically fetches a higher loan amount.
- Gold weight: The weight of the gold jewellery or assets pledged directly affects the loan amount. Generally, higher gold weight translates to a higher loan amount.
- Current market value: The prevailing market price of gold determines the loan amount. Fluctuations in gold prices directly impact the loan amount, with higher gold prices resulting in higher loan amounts.
- Loan-to-value ratio: Typically you can get a loan amount based on a percentage of your gold's value, known as the loan-to-value (LTV) ratio. Higher LTV ratios result in higher loan amounts. As per RBI guidelines, you can get up to 75% of your gold’s value as loan against your gold jewellery.
