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 up to Rs. 2 crore with interest rates starting from 9.50% 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 business investments.
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 Finserv 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, a wedding, or expanding a business, 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:
- Check Eligibility: Ensure you meet the basic eligibility criteria, such as citizenship, age (usually 21 years to 70 years) and ownership of gold ornaments with a purity of 18-22 carats.
- Gather Documents: Collect essential documents like Aadhaar card, Voter ID card, passport, NREGA job card or a letter from NPR).
- 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.
- 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.
- Loan Approval and Disbursal: Once the valuation is complete and documents are verified, the loan is approved. Funds are disbursed immediately, often within a few hours.
- Repayment Options: Choose a repayment plan that suits your financial situation. Bajaj Finserv provides flexible 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.
Eligibility Criteria for a Jewellery Loan
Applying for a jewellery loan is straightforward, with minimal eligibility requirements. Financial institutions like Bajaj Finserv ensure that borrowers can access funds without cumbersome procedures. Here are the primary eligibility criteria:
- Age: Borrowers must typically be between 21 years and 70 years of age. This ensures that the individual is financially capable of repaying the loan.
- Ownership of Gold Jewellery: The applicant must own gold ornaments with a purity ranging between 18-22 carats. Note that gold coins and bars may not always be accepted.
- Citizenship: Only Indian residents are eligible to apply for a gold loan with Bajaj Finance.
These relaxed criteria make gold loans an inclusive financial product. Bajaj Finance ensures that the application process is seamless and quick, enabling borrowers to access funds without delays. Whether you need immediate funds for medical emergencies, education, or business expansion, meeting these basic requirements allows you to secure a jewellery loan with ease.
Documents Required for a Loan Against Gold Jewellery
Applying for a loan against gold jewellery involves minimal documentation, ensuring a quick and hassle-free process. Bajaj Finserv simplifies the procedure, enabling borrowers to access funds promptly. Below are the essential documents you need:
- Aadhaar Card
- Voter ID Card
- Passport
- Driving Licence
- NREGA Job Card
- Letter Issued by National Population Registration
These limited documentation requirements make gold loans accessible to a wide range of individuals, including homemakers, farmers, and small business owners. Once the necessary documents are submitted, the lender verifies them, assesses the gold’s value, and disburses the loan amount promptly.
Bajaj Finserv ensures transparency and security throughout the process, making it a reliable option for financial emergencies or planned expenses. The simplicity of documentation ensures that you can focus on your financial goals without worrying about cumbersome paperwork.
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.
Interest rates on loans against gold jewellery
The interest rate on a gold loan is a key factor to consider when choosing a lender. At Bajaj Finserv, gold loan interest rates are designed to be competitive and affordable, making it a practical financial solution for borrowers.
Interest rates on gold loans typically vary based on factors like loan amount, tenure, and the borrower’s repayment capacity. Since gold loans are secured loans with collateral, they generally have lower interest rates compared to unsecured loans. This makes them an attractive option for meeting immediate financial needs, such as funding a wedding, managing medical expenses, or expanding a business.
Bajaj Finserv offers interest rates starting from as low as 9.50% per annum, ensuring affordability for borrowers. Additionally, the company provides multiple repayment options. This flexibility allows you to choose a repayment plan that aligns with your financial situation, reducing the burden of repayment.
Another advantage of Bajaj Finance is the transparency in charges. There are no hidden fees, and all terms are clearly explained upfront, allowing you to make an informed decision. The lender also offers a gold loan calculator on its website to help you estimate your interest and repayment schedule.
By choosing Bajaj Finserv Gold Loan, you gain access to attractive interest rates, transparent terms, and flexible repayment options, ensuring a hassle-free borrowing experience that empowers you to achieve your financial goals.
Here are a few reasons why opting for a loan against gold jewellery can be an excellent choice:
Instant fund disbursement
A primary advantage of gold loans is the quick disbursement of funds, making them a preferred choice for many. When faced with unexpected financial emergencies or urgent needs, time is of the essence. Gold loans offer a swift solution by providing immediate access to funds. The process is simple: you pledge your gold assets as collateral, allowing lenders to extend funds based on the market value of your gold. This ensures quick approval and fund disbursement, enabling you to address your financial needs quickly and efficiently.
Competitive interest rates
Another significant benefit of gold loans is the competitive interest rates that they offer. Compared to unsecured loans like personal loans or credit cards, gold loan interest rates tend to be lower. This is due to the secured nature of gold loans. Your gold jewellery acts as collateral, reducing the risk for lenders. As a result, you can benefit from a cost-effective borrowing option, saving you from high-interest charges. Gold loans, therefore, become an attractive choice for obtaining quick funds. Bajaj Finance, for example, offers gold loans at an interest rate starting from just 9.50% per annum.
High value per gram of gold
The loan amount that you can receive through a gold loan is determined based on the value of gold per gram. Each lender has its own method of calculating the loan-to-value ratio, which specifies the percentage of your gold's value that the lender is willing to provide as a loan. Bajaj Finance offers a maximum loan of up to 75% of the market value of your pledged gold.
Multiple repayment schedules
With us, you have the flexibility to choose gold loan repayment options that suit your financial circumstances. Lenders offer various repayment tenures, allowing you to select a duration that aligns with your repayment capacity. When opting for a Bajaj Finance Gold Loan, you can choose to pay the full interest amount at the beginning of the loan term and clear the remaining principal at the end. You can also make interest payments on a monthly, bimonthly, quarterly, half-yearly, or yearly basis.
No dependency on credit score
One of the major advantages of instant gold loans is that they do not require a credit check. This means that even if you have no credit history or a low credit score, you can still avail these loans based on the value of your gold jewellery.
Easy application process
Applying is easy if you are an Indian citizen aged between 21 and 70 years, with just your KYC documents like your voter ID card, Aadhaar Card, passport, or driver's licence. To fulfil your planned or unplanned requirements, you can simply apply for a gold loan from the comfort of your home by following the steps mentioned below:
- Click on ‘APPLY’ on this page to open our online application form
- Enter your 10-digit mobile number and click on ‘GET OTP’
- Enter OTP to verify your details
- Select your state and city to locate your nearest branch
- Enter your full name and date of birth as per your PAN
- Set up your appointment at the nearest branch in your city.
Next, you will also receive a call from our representative who will guide you on the next steps.
Hence, by borrowing against the value of your gold jewellery, you can deal with financial needs without compromising the ownership of your precious jewellery. So, the next time you need funds quickly, think about the benefits of a gold loan.
To get a smart and safe gold loan, just go to a Bajaj Finance store near you or fill out an application for a gold loan on the Bajaj Finance.
