In India, gold jewellery is viewed as a highly valuable asset, much like land or property. Gold is often cherished as heirlooms passed down for generations. However, it is not just because of their beauty or status symbol that they are prized. It is also because gold can serve as collateral for a loan, making it a valuable resource during financial emergencies.
When you pledge gold for a loan, you can use the amount for any immediate need you may have. Unlike other secured loans, gold loans are ideal for fulfilling various planned or unplanned expenses. It could range from financing your child's higher education, covering medical emergencies, to starting or expanding a business.
You can easily get a quick loan starting from Rs. 5,000 up to Rs. 2 crore, in exchange of your 18-22 karat gold jewellery.
Why pledge gold for money?
If you own gold jewellery and are wondering if it is a good idea to take a loan against it, read on to discover five major reasons to take a gold loan:
1. Low interest rate
A significant benefit of taking out a gold loan is that it usually offers a lower interest rate compared to unsecured loans such as personal loans. This is because the gold serves as collateral for the lender, lowering the level of risk involved. Bajaj Finance offers gold loan interest rate as low as 9.50% per annum, making it an excellent choice for obtaining funds without the added burden of high interest rates.
2. No part-prepayment or foreclosure fee
You can repay a part of your gold loan in advance or pay the entire amount at no extra charges, which further reduces the overall loan servicing expenditure.
3. Multiple repayment options
With gold loans, you have the flexibility of choosing from multiple repayment options. One option is to pay the entire interest amount at the beginning of the loan tenure and settle the remaining principal later. Alternatively, you can select monthly, quarterly, or yearly interest payments and pay off the principal amount at the end of the loan tenure.
4. No CIBIL Score check
Gold loans are secure loans, so you do not need a good CIBIL Score to get them. All you need is gold jewellery that meets the standards, and the loan will be approved against it. This makes gold loans a great choice if you have a low credit score or no credit history.
5. Easy application process
Because gold loans involve physical gold jewellery as collateral, it is comparatively easier to get the loan sanctioned with minimal gold loan document verification and lesser processing time. To be eligible for a Bajaj Finserv Gold Loan, you must be an Indian citizen aged between 21 to 70 years and have any one of the following KYC documents: Aadhaar Card, voter ID card, passport, or driving licence.
How do I apply for a Bajaj Finserv Gold Loan?
Applying for a gold loan is easy and can be done directly on our website. Here are the steps that you need to follow:
- Step 1: Click on the ‘APPLY’ button to open the online application form.
- Step 2: Enter your full name and 10-digit mobile number.
- Step 3: Provide your city name and select your nearest branch location.
- Step 4: Complete the online process by submitting the OTP sent to your phone.
Once you have completed the online application, a Bajaj Finance representative will help you schedule an appointment at your preferred gold loan branch. Our quick processing at over 800 branches across the country ensures a hassle-free and convenient loan disbursement experience.
You can visit us at your convenience with your 18-22 karat gold jewellery, and our staff will assess its purity and process your application.