So you are thinking of taking a loan against your gold jewellery. But you want to know how much you can get, before applying.
As this is a secured loan, the loan amount you are offered depends on the value of your asset. Here is what you need to know about this process:
When you take a gold loan for the first time
After you submit your online application form, you will receive an appointment at our nearest gold loan branch. There, your gold jewellery is weighed, and the value is set based on that day’s market rates for gold.
However, your loan offer will not be the complete value of your jewellery. The maximum loan amount that you can take will be 75% of the full value of your gold. This capping is an industry standard set by the RBI.
When you renew your gold loan
Bajaj Finserv Gold Loans come with a tenure of up to 12 months. While you cannot extend your loan, you can renew it for another full term of up to 12 months in case you need more time to repay.
In such a situation, the gold jewellery that you had submitted as collateral is weighed again. It is re-valued as per the market rate for gold on the date of renewal. Your loan amount then is changed based on this new value.
Therefore, if the current gold rates are higher, you will be given the option to add the increased value to your loan. This gives you more money, in the event that you are short on funds. But if the gold rate is lower on the date of renewal, your overall loan sanction will decrease accordingly. In this case, you will need to pay the difference back to us.
When you transfer your gold loan balance from another lender
Suppose you have taken a gold loan from another lender, and you are paying high interest charges on it. If you choose to transfer your gold loan to us for a more nominal interest rate, you will be offered a sum based on the market rate for gold on the day you apply for the balance transfer.
If the market rates for gold have increased since you took your original loan, you stand to get a higher loan from us. However, if they have decreased, your offer will be lower. Thus, it is smart to plan your balance transfer on a day when the value of gold is high.