How to Get a Quick Gold Loan Against Your Gold Jewellery

Gold loans: A quick and reliable way to meet urgent needs

During times of financial need, having quick and dependable funding sources becomes crucial. Luckily, a gold loan provides a smart and secure solution to fund your urgent needs. By utilising your gold jewellery, you can obtain the necessary financial assistance without having to go through a lengthy approval processes or parting with your valued possessions. This ensures that you can effortlessly meet all your financial requirements quickly and efficiently.

Unlike traditional lending options, applying for an instant gold loan is straightforward and trouble-free. You only need your basic identification documents and your 18-22-karat gold jewellery. Bajaj Finance allows you to easily get a gold loan starting from Rs. 5,000 to Rs. 2 crore with interest rates starting from 9.50% to 24% p.a.

What is a loan against jewellery?

A loan against jewellery is a secured financial option where individuals can borrow money by pledging their gold ornaments as collateral. It is an efficient way to access funds without selling your precious assets. Bajaj Finance offers this facility, enabling borrowers to meet their urgent financial needs, whether for personal expenses, medical emergencies, or home repairs.

This loan type is particularly advantageous because it offers quick disbursal, minimal documentation, and flexible repayment options. The loan amount is determined by the purity and weight of the gold jewellery pledged. Typically, lenders provide up to 75% of the gold's market value as the loan amount, adhering to Reserve Bank of India (RBI) regulations.

One of the key benefits is that you retain ownership of your jewellery. Once you repay the loan amount along with the interest, your gold is returned to you in its original form. Bajaj Finance ensures the safety of pledged jewellery by storing it in secure vaults during the loan tenure.

With competitive interest rates, a loan against jewellery is an affordable and accessible way to meet financial requirements. Whether you need funds for education, or a wedding, this type of loan provides a practical solution. The process is straightforward, making it ideal for those seeking immediate financial assistance without lengthy procedures or credit score constraints.

By leveraging the value of your gold, a jewellery loan ensures liquidity while preserving your cherished assets.

How to get a loan against gold jewellery?

Obtaining a loan against gold jewellery is a simple and hassle-free process. Bajaj Finance makes it convenient for borrowers to secure funds quickly. Here’s a step-by-step guide:

1. Check eligibility: Ensure you meet the basic eligibility criteria, such as citizenship, age (21 to 70 years) and ownership of gold ornaments with a purity of 18-22 carats.
2. Gather documents: Collect essential documents like Aadhaar card, Voter ID card, passport, NREGA job card or a letter from NPR).
3. Visit the branch or apply online: You can either visit a nearby Bajaj Finserv Gold Loan branch or initiate the application process online. Online applications offer added convenience and time savings.
4. Gold valuation: The lender assesses the purity and weight of your gold to determine its market value. The loan amount offered typically ranges up to 75% of the gold’s value.
5. Loan approval and disbursal: Once the valuation is complete and documents are verified, the loan is approved. Funds are disbursed immediately, often within one branch visit.
6. Repayment options: Choose a repayment plan that suits your financial situation. Bajaj Finance provides multiple repayment options, monthly, bi-monthly, quarterly, half-yearly, or annual interest payments, with the principal amount due at the end of the loan term.

The pledged gold remains securely stored in high-security vaults until the loan is repaid. This process ensures transparency, quick access to funds, and the safety of your valuables. A loan against gold jewellery is an excellent option for addressing urgent financial needs without liquidating your assets.

Pro tip: Discover your borrowing potential by checking your gold loan eligibility. It takes just a few clicks and no waiting.

How is the value of gold jewellery calculated for a loan?

When applying for a gold loan, the valuation of your gold jewellery is a crucial factor in determining the loan amount. Bajaj Finance uses standardised methods to calculate the value of the pledged gold, ensuring transparency and fairness.

The first step involves assessing the purity of the gold. Most lenders accept gold with a purity level of 18 carats or higher. The jewellery is examined by certified evaluators who use advanced techniques, such as karat meters or acid tests, to verify its purity. Non-gold elements like stones or additional embellishments are excluded from the valuation process.

Once the purity is confirmed, the weight of the gold is measured. The net weight, after deducting any non-gold components, is then considered. The lender applies the prevailing market rate for gold, which is typically based on the daily bullion rate. This ensures the valuation reflects the current market trends.

The loan-to-value (LTV) ratio is then applied to the assessed value. As per RBI guidelines, lenders can offer up to 75% of the gold’s market value as a loan. Bajaj Finserv provides competitive LTV ratios, allowing borrowers to maximise their loan amounts.

This process ensures that you receive a fair and accurate loan amount based on your gold’s value. With us, the valuation process is swift and transparent, offering you the confidence and convenience to meet your financial needs without selling your precious assets.

How is the value of gold jewellery calculated for a loan?

When applying for a gold loan, the valuation of your gold jewellery is a crucial factor in determining the loan amount. Bajaj Finance uses standardised methods to calculate the value of the pledged gold, ensuring transparency and fairness.

The first step involves assessing the purity of the gold. Most lenders only accept gold with a purity level of 18-22 Karat. The jewellery is examined by certified evaluators who use advanced techniques, such as karat meters or acid tests, to verify its purity. Non-gold elements like stones or additional embellishments are excluded from the valuation process.

Once the purity is confirmed, the weight of the gold is measured. The net weight, after deducting any non-gold components, is then considered. The lender applies the prevailing market rate for gold, which is typically based on the daily bullion rate. This ensures the valuation reflects the current market trends.

The loan-to-value (LTV) ratio is then applied to the assessed value. As per RBI guidelines, lenders can offer up to 75% of the gold’s market value as a loan. Bajaj Finance provides competitive LTV ratios, allowing borrowers to maximise their loan amounts.

This process ensures that you receive a fair and accurate loan amount based on your gold’s value. With us, the valuation process is swift and transparent, offering you the confidence and convenience to meet your financial needs without selling your precious assets.