From necklaces to bangles, bracelets, rings, and more, your gold jewellery can come to your rescue when you need funds. Whether you have a planned expense or face an unexpected event, a gold loan presents a fast and easy solution to access the funds you require.
When you consider applying for a gold loan, one important aspect to keep in mind is the interest rate. The interest rate directly affects the affordability and feasibility of the loan. Since the gold jewellery serves as collateral, the gold loan interest rate is typically lower than that on an unsecured loan. Bajaj Finance offers gold loans at interest rates starting from 9.50% per annum. You can use your 18-22 karat gold jewellery to get loans starting at Rs. 5,000 going all the way up to Rs. 2 crore.
Here's a quick look at the top 4 factors impacting your gold loan interest rates and how you can better plan your repayments.
The loan amount
Due to the significant market value of gold, it becomes easier for you to secure a larger loan, with most lenders offering up to 75% of the total value of the gold you pledge, in accordance with current RBI regulations. Reputed lenders like Bajaj Finance consider factors such as the loan amount and repayment frequency to determine the interest rate applied to your gold loan.
Gold rates
The market rate of gold also influences the interest rates on gold loans, with lenders closely tracking these rates as they directly impact the value of the gold collateral. Typically, higher gold prices lead to lower interest rates, resulting in a more affordable loan for you.
Repayment frequency
The frequency at which you make interest payments on your loan also impacts the interest rate. Opting for a gold loan repayment option with a higher frequency of instalment payments will result in a lower interest rate on your gold loan, while choosing a lower frequency can lead to a higher interest rate.
Monthly income
While gold loans generally have a simple application process and require minimal documentation, certain lenders may request proof of monthly income during the application. If you have a stable income source, some lenders may offer a lower interest rate on your desired loan amount, as they have confidence in your ability to repay. However, it's important to note that reputable lenders like Bajaj Finance typically do not require income proof for a gold loan, and your KYC documents are sufficient.
To apply for a Bajaj Finserv Gold Loan, you can follow the easy steps mentioned below:
Step 1: Visit the Bajaj Finance website and navigate to the gold loan product page.
Step 2: Select and open the online application form.
Step 3: Fill in your first and last name as it appears on your PAN card.
Step 4: Enter your 10-digit mobile number and select your city.
Step 5: Enter the OTP sent to your registered mobile number and submit the application.
After completing these steps, a representative from Bajaj Finance will contact you and take you through the next steps.
