A gold loan is a simple and efficient way to secure funds by pledging your gold as collateral. The process begins with you taking your gold to a lender. The lender evaluates the gold based on its purity, weight, and the current market price of gold. This determines the value of your gold.
Once the evaluation is complete, the lender offers a loan amount, which is usually a percentage of the gold's value. This percentage, called the Loan-to-Value (LTV) ratio, generally up to 85% of your gold’s value, as per the guidelines set by the RBI. After agreeing on the terms, you provide basic documents mentioned above in the eligibility section.
Bajaj Finance considers lower of the previous day’s closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange to evaluate the loan amount against your gold jewellery, ornament or coin.
The loan is disbursed promptly, often on the same day, either in cash or directly to your bank account. Gold loans usually offer multiple repayment options.
During the loan period, your gold is securely stored by the lender. Upon complete repayment of the principal and interest, your gold is returned. However, if the loan isn’t repaid, the lender may auction the gold to recover the outstanding amount.
Please note, the maximum LTV eligible for a loan depends on the loan amount and cannot be more than the limits given. To know more, click here.
Not sure if you qualify? Find out in moments— check your gold loan eligibility and plan your next move confidently.
