Key Features and Benefits of Taking a Gold Loan

A comprehensive overview of the features and benefits of applying for a gold loan.
Key Features and Benefits of Taking a Gold Loan
1 min read
02 December 2023

In the ever-evolving world of finance, where options are abundant, gold loans emerge as a versatile and reliable choice for those seeking swift access to funds. Whether it is an unexpected expense, a planned purchase, or the need for financial flexibility, gold loans offer several features and benefits that can significantly impact your financial journey.

Let us explore the world of gold loan benefits, unravelling the distinctive features and the extensive gold loan advantages it brings to your financial portfolio.

Understanding the features and benefits of gold loans

  1. Quick access to funds: Opting for a gold loan often grants you access to funds in as little as 15 minutes*. This agility makes gold loans an ideal solution for addressing unforeseen financial emergencies. With Bajaj Finance, you can get a quick gold loan of up to Rs. 2 crore against 18-22 karat gold jewellery. Since a loan against gold jewellery is secured with tangible gold, it is easier to get the loan sanctioned with minimal paperwork and a shorter processing time. You can easily get up to 75% of your gold's value in accordance with RBI guidelines.
  2. Lower interest rates: Gold loans typically feature lower interest rates when compared to unsecured loans. The gold loan interest rate are determined based on the value of gold pledged as collateral. Since the lender has security in the form of physical gold, the interest rates for a gold loan are relatively lower. With interest rates starting from just 9.50%*p.a., gold loans emerge as an attractive option for individuals looking for low-interest loans during a financial emergency.
  3. Retain ownership: One of the primary advantages of obtaining a gold loan is the ability to secure the required funds without relinquishing ownership of your gold jewellery. An instant gold loan allows you to retain possession of your gold while utilising it as collateral for the loan, enabling you to fulfil your financial requirements without sacrificing something of personal significance or potential future value.
  4. No credit checks: Since gold loans are secured loans, you do not require a high credit score to avail them. All you need is gold jewellery as per the required standards. The loan will be sanctioned against it. This makes gold loans an excellent option in case you have a low credit score or no credit history.
  5. Multiple repayment options: Gold loans also offer you the benefit of multiple repayment options. Depending on your financial situation, you have the option of selecting a shorter or longer repayment term. With us, you can choose to pay interest monthly, bi-monthly, quarterly, half-yearly, or on an annual basis as per your convenience.
  6. Easy eligibility criteria: The eligibility criteria for a gold loan are simple. You just need to be an Indian citizen between the ages of 21 to 70 years and have your basic KYC papers for verification. You only need any one of these documents- voter ID card, Aadhaar Card, driver's licence, passport, NREGA job card, or letter from National Population Registration- to get the loan approved.
  7. Varied loan purposes: Gold loans are versatile and can be employed for a wide range of purposes, from covering medical expenses and educational costs to funding business ventures or home renovations.

Process to apply for a gold loan

  1. Application: The first step in the gold loan procedure is to apply for it. You can either do this by visiting your nearest gold loan branch or apply online from the comfort of your home through our website or mobile app.
  2. Gold appraisal: Once you have applied for the loan, the next step is to get your gold jewellery. We will assess the purity and weight of the gold to determine the loan amount.
  3. Documentation: After the gold is appraised, you will be asked to complete the document verification process. To apply, you just need any one of the following KYC documents – Aadhaar Card, Voter ID card, passport, driving licence, NREGA job card, or a letter from the National Population Registration. Though the PAN card is not a mandatory document, you will be asked to submit it in case your loan amount is more than Rs. 5 lakh.
  4. Loan disbursement: Once the gold is appraised, and the necessary documentation is complete, your loan amount will be disbursed to you. You can choose to receive the amount in cash or get it credited to your bank account. You can only receive cash for an amount up to Rs. 1,99,999.
  5. Repayment: Now you will be asked to choose a suitable repayment tenure, ranging up to 12 months. You can choose to pay the 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.

Gold loans stand as a versatile financial instrument that combines the security of your gold jewellery with swift access to funds. Features, such as minimal documentation, free insurance of gold, and no pre-payment or foreclosure fee*, render them a favourable choice for various financial needs. The benefits, including reduced borrowing costs, instant access to funds, and the preservation of your gold ownership, enhance their allure.


While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

Can I pay a gold loan interest using a credit card?

Yes, you can pay a gold loan interest using a credit card, but it is important to understand the terms and any associated fees for this payment method. However, you must plan your repayment carefully and pay credit card bills on time to avoid a debt trap.

What is the minimum tenure of a gold loan?

With Bajaj Finserv Gold Loan, you get a tenure of up to 12 months. You can pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annually, according to your preference.

What is the interest of 1 lakh gold loan?

The interest rate on a gold loan worth Rs.1 lakh depends on factors like the value of your gold, the loan-to-value ratio, and repayment tenure. To make things easier, you can use our online gold loan calculator to get accurate results.