How to Increase CIBIL Score with a Gold Loan

How to Increase CIBIL Score with a Gold Loan

Here’s how a loan against your gold jewellery can help you improve your credit score.

Rs. 5,000 - Rs. 2 crore

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Can a gold loan really help improve your credit score?

If you are trying to boost your credit score, a gold loan might just be the option you have not thought about yet. Not only does it give you quick and easy access to funds, but it can also make a positive difference to your credit profile.


But before we get into how it works, let us first understand what a CIBIL Score actually is. Think of it as a number that tells lenders how trustworthy you are with credit. This score ranges between 300 and 900, and the higher it is, the better your chances of getting loans and credit approvals.


Your score depends on a few things—like paying your EMIs and credit card bills on time, using credit smartly, maintaining different types of credit, and having a long credit history. Do these right, and your score goes up. On the flip side, late payments, defaults, or overusing credit can pull your score down.


How can a gold loan help improve your credit score?

Here are the key ways gold loan can help improve credit score:


Timely repayment of your loans

Making your gold loan repayments on time can help you boost your credit score. Your payment history is a crucial factor in determining your credit score. When you make timely repayments, it demonstrates to lenders that you are responsible and trustworthy in repaying your debts.


Diversity of credit can boost your credit score

Having a variety of different types of credit can enhance your credit score. Taking out a gold loan can contribute to diversifying your credit mix and improving your credit score. Relying solely on one form of credit, such as credit cards, for instance, may hinder your credit score.


In India, a CIBIL Score is a crucial factor in determining your loan eligibility. By taking out a gold loan and making timely repayments, you can demonstrate your ability to manage and repay debt responsibly. This positive repayment behaviour is a crucial factor in building a strong credit profile. So, if you're looking to address your financial needs while also boosting your credit score, a gold loan can be an excellent choice.


Key benefits of a gold loan

Other benefits that make gold loan an ideal form of borrowing are:


Competitive interest rates

The most important factor to consider when getting a gold loan is the interest rate charged on the loan. While different lenders have different rates, it is important that the rate is reasonable and affordable. At Bajaj Finserv, you can get a loan against your 18-22 karat gold jewellery with gold loan interest rates starting at 9.50% to 24% p.a. Another added advantage of taking a gold loan is that with a longer repayment tenure you can benefit from a lower rate of interest.


Multiple repayment options

With gold loan, you also get the freedom to choose a gold loan repayment tenure as per your convenience. Bajaj Finserv offers you multiple repayment schedules to repay your loan. With us, you can choose to repay your loan monthly, bi-monthly, quarterly, half-yearly, or annually.


High gold loan per gram

A gold loan per gram is a loan that is issued against a certain weight of gold. Simply put, instead of taking out a loan for a fixed amount, you take out a loan based on the value of your gold. With a Bajaj Finserv, you can get up to 75% of the estimated weight of your pledged gold jewellery with loan amounts ranging from Rs. 5,000 up to Rs. 2 crore. The amount you can borrow against your gold jewellery depends on the per gram rate of gold.


Free insurance of gold

Another added advantage of gold loans is the free insurance of your gold jewellery. The pledged gold jewellery is stored in secure vaults under constant surveillance. This ensures the safety of your gold jewellery, giving you the needed peace of mind.


Easy eligibility parameters

These loans come with easy to meet eligibility parameters. As an Indian citizen between 21 and 70 years of age, you can easily apply for a gold loan with just your KYC documents. The list of documents includes any one of the following proofs of identity and residence:


  • Aadhaar Card
  • Voter ID card
  • Passport
  • Driving licence
  • NREGA job card
  • Letter issued by National Population Registration

PAN card is not required. However, if you apply for a gold loan above Rs. 5 lakh, you will have to submit your PAN card.


If you are considering a gold loan, you can use our gold loan calculator to determine the loan amount and interest rate that align with your needs.


Turn your gold into instant support—handle any expense with ease. Check your gold loan eligibility and access funds when you need them most.

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Gold loan fees and charges

The interest rate for a gold loan depends on factors like the weight and purity of your pledged gold, the loan amount, and the repayment tenure you choose. Bajaj Finance keeps it affordable with attractive rates ranging from 9.50% to 24% per year. Since the loan value is directly linked to the current gold price, higher prices mean you can unlock a bigger loan amount for the same jewellery. There is a small processing fee on the loan amount, along with a few other minimal charges, all of which is mentioned upfront on our gold loan interest rate page. The best part is that there are no foreclosure charges, so you can repay your loan early without paying anything extra. Everything is clear and upfront, making it easy to plan your repayments.

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Eligibility criteria for gold loans

Getting a Bajaj Finserv Gold Loan is simple because the eligibility rules are straightforward. You just need to be an Indian citizen between 21 and 70 years of age and have 18-22 karat gold jewellery of the required purity. There is no need to worry about a high credit score or complicated paperwork. As long as you have gold jewellery to pledge, you can quickly qualify and get access to funds without stress.


It takes just 2 steps to check your eligibility for a Bajaj Finserv Gold Loan. Enter your mobile number now.

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How to apply for a gold loan

Getting a Bajaj Finserv Gold Loan is super easy and hassle-free. Just head to the nearest branch with your gold jewellery and KYC documents. The team will quickly check your gold’s purity and weight, calculate your eligible loan amount, and process it right away. In most cases, the money hits your account the same day, so you can walk out with funds ready when you need them. For extra convenience, you can also apply online through the Bajaj Finserv App or website—no need to step out at all. 


Ready to unlock the value of your gold? Apply for Bajaj Finserv Gold Loan today.

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Disclaimer

Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.