The process to avail of a gold loan is pretty straight forward:
- Apply online: Fill in the online application form to book your appointment to the nearest gold loan branch.
- Gold appraisal: On the scheduled day, visit the branch with your gold jewellery. The lender assesses the gold for purity and weight.
- Loan offer: Based on the appraisal, the lender proposes a loan amount, generally up to 75% of the gold's value.
- Documentation: You have to submit any one of your basic KYC documents for verification.
- Loan approval and disbursement: Upon verification, the loan is approved, and the amount is disbursed, usually within 15 minutes*.
- Repayment: The borrower repays the gold loan interest rate in chosen loan tenure. Though, it is important to note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
- Gold retrieval: Once the loan is fully repaid, you can retrieve your pledged gold.
Documentation required for gold loan application
Applying for a gold loan requires minimal documentation, making the process swift and hassle-free. You only need any one of your basic KYC documents, such as Aadhaar card, PAN card, passport, driving licence, NREGA job card or letter from the National Population Registration. The simplicity of the documentation process is one of the reasons gold loans are a preferred choice for quick financial assistance in India.
Eligibility criteria for gold loans
Gold loans are relatively easy to obtain due to their flexible eligibility criteria. The primary requirement is ownership of 18-22 gold jewellery. Any Indian citizen, aged between 21 to 70 years, can apply for a gold loan with Bajaj Finance. There is no strict criterion for credit score, making gold loans accessible to individuals with varying credit histories. Employment status is also not a major concern, as both salaried and self-employed individuals can apply. The value and weight of the gold determine the loan amount, with a maximum loan-to-value ratio usually capped at 75%.
Tips for a smooth gold loan application process
To ensure a smooth gold loan application process, consider the following tips:
- Check eligibility: Ensure you meet the lender's eligibility criteria, including the required gold purity.
- Organise documentation: Have all necessary documents, such as identity and address proof, ready for submission.
- Understand terms: Thoroughly read and understand the loan terms, including repayment options and gold loan rate of interest.
- Timely repayment: Plan your finances to ensure timely repayment, avoiding penalties and maintaining your credit score.
How to get the best interest rates on gold loans?
To secure the best
gold loan rate of interest:
- Opt for higher loan amounts: Larger loan amounts often come with lower interest rates.
- Maintain a good relationship: Being an existing customer or having a strong repayment history can secure favourable rates.
- Choose the right tenure: Opting for a shorter gold loan tenure can sometimes result in lower interest rates.
- Pledge high-purity gold: Higher purity gold often qualifies for better interest rates.
By following these steps, you can maximise your chances of securing the best interest rates on your gold loan with Bajaj Finance.
