All About Gold Loan

Gold loans for emergencies

Gold loans are one of the most dependable options during financial emergencies. When you need urgent funds, pledging your gold jewellery can give you quick access to money without selling your precious assets. Many people in India rely on this option because gold often acts as a financial safety net during uncertain times.

With Bajaj Finserv Gold Loan, you can borrow up to Rs. 2 crore by pledging your gold. The process is simple, and disbursal is quick, making it ideal for emergencies like medical bills, education fees, or urgent repairs. You also get the benefit of multiple repayment options, so you can repay the loan comfortably over time.

Whether the need is sudden or planned, a gold loan helps you manage your expenses smoothly while keeping your gold safe and secure.

What is a gold loan and how does it work?

A gold loan is a secured loan that allows you to borrow funds ranging from Rs. 5,000 to Rs. 2 crore by pledging your 18-22 karat gold jewellery as collateral. Bajaj Finance assesses the weight and purity of your gold to determine its market value. Based on this value and the loan-to-value ratio set, after document verification is done, you receive a loan amount.

Once approved, the funds are disbursed quickly, making it an excellent option for urgent financial needs. You can choose to repay the loan through multiple repayment options- monthly, bi-monthly, quarterly, half-yearly, or annually, depending on the repayment terms agreed upon. After full repayment, the pledged gold is safely returned to you. Learn more about a gold loan to meet your immediate cash requirements.

Who is eligible for a gold loan?

A gold loan is one of the most accessible financial products, designed to cater to a wide range of borrowers. Anyone can apply for our gold loan, as long as they meet the basic gold loan eligibility criteria. This includes salaried individuals, self-employed professionals, business owners, and even homemakers who may not have a regular source of income.

Applicants typically need to meet basic criteria, such as being an Indian resident and falling within the age bracket of 21 to 70 years. Minimal documentation further simplifies the process, making it suitable for anyone looking for a quick financial solution. Explore the range of gold loan options available to meet your unique financial needs.

Thinking of applying for a gold loan? Start with a simple step—check your gold loan eligibility today.

Documents required for a gold loan application

Applying for a gold loan involves minimal documentation, ensuring a quick and hassle-free process. With Bajaj Finance, you’ll only need any one of the following documents to get started. These include:

• Aadhaar card
• Voter ID card
• Passport
• Driving licence
• NREGA job card
• Letter issued by National Population Registration

*PAN card is not required. However, if you apply for a gold loan of Rs. 5 lakh or above you will be asked to submit your PAN card.

These documents are verified during the application process, after which your gold is evaluated. Once the assessment is complete, and the loan terms are agreed upon, you can receive the funds in some time. This straightforward process ensures that a gold loan is one of the fastest ways to secure funds.

How does gold loan work?

Owning gold provides people with financial security because of its rising market value. Its underlying asset value can command a high price when sold or traded. Fortunately, you do not have to give up your gold ornaments in order to raise money today. Instead, you could opt for a gold loan. The loan amount offered is based on the gold loan per gram rate followed by the lender. You can get a maximum loan of up to 75% of the market value of your gold.

Features and benefits of our gold loan

Here are the key benefits of a gold loan: 

1. High loan amount
   Be it unprecedented medical costs or an important home renovation project. Get up to 75% of the value of your gold jewellery and pay for these hefty expenses without any hassle.
    
2. Transparent gold assessment
   Your offered loan amount is decided based on the gold’s worth and purity. Your gold jewellery is assessed using our professional-grade carat metres to ensure its authenticity and purity, and give you the best offer possible.
    
3. Easy repayment solutions
   You get a range of gold loan repayment options. You may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annually basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
    
4. Industry-best safety protocols
   We know that your gold jewellery is not just a precious commodity. There are sentiments attached to these valued items. Therefore, we take the security of your heirlooms very seriously. Your gold valuables are kept in top-of-the-line vaults, with best-in-class security protocols to keep them safe.
    
5. Part-release facility
   You do not need to wait for your complete loan to be paid off before releasing your valuables. You can release a portion of the jewellery that was pledged by paying back the equivalent amount.
    
6. Complementary gold insurance
   Nobody wants to suffer an unforeseen loss of their valuables. To ensure this, our gold loan comes with complementary gold insurance. Under this policy, your assets are covered against damage, theft and misplacement.

Additional read: Today’s gold rate in India 

Pro tip: Before you pledge your gold, know your options. Check your gold loan eligibility and choose the right amount and tenure.