Gold Loan Repayment Through Credit Card

Learn how can you repay a gold loan using a credit card and enjoy the convenience of this payment method.
Gold Loan Repayment Through Credit Card
2 min read
30 May 2025

Understanding the growing demand for gold loan

Gold loans have become increasingly popular in recent years, particularly during the pandemic when quick access to funds was crucial. Their uniqueness lies in simple eligibility requirements and hassle-free availability, making them a preferred financing option for many. One of the biggest advantages of gold loans is the speed at which they are processed borrowers can receive funds within hours by pledging gold jewellery as collateral. Additionally, gold loans allow flexible usage of funds, whether for education, medical emergencies, or other personal needs. The borrower also benefits from multiple repayment options, including monthly, quarterly, half-yearly, or annual interest payments with principal repayment at maturity. Another key highlight is the affordable gold loan interest rate, which is generally lower than that of unsecured loans. These features combined make gold loans an attractive and practical choice for individuals seeking short-term credit without the burden of extensive documentation or strict credit score requirements.

Steps to repay gold loan through credit card

Repaying a gold loan with a credit card is possible if your lender accepts credit card payments for interest dues. While gold loans are typically repaid through cash, net banking, or UPI, some financial institutions may offer the facility to pay via credit card. However, Bajaj Finance does not offer the facility to repay your gold loan using credit card.

Here’s how you can manage gold loan repayment using a credit card:

  • Check lender policy – Confirm if your gold loan provider accepts credit card payments.
  • Use online portal or app – If allowed, log in to the lender’s platform, select the credit card option, and pay the interest due.
  • Plan repayment wisely – Credit card payments are treated as transactions, so they may attract interest if not repaid in full by the due date.
  • Use during emergencies – This method can help during cash shortages but should be used carefully to avoid debt stacking.

Pay interest at regular intervals and principal on maturity

This is the first repayment option for a gold loan where you can pay off interest at regular intervals (monthly/bi-monthly/quarterly/half-yearly/annually) and repay the entire principal amount at the tenure’s end. You can choose the interest payment interval by assessing your financial capability. Such a provision is beneficial for you as you do not have to worry about principal repayment throughout the tenure and are only liable to pay off the interest component. Thus, before applying for the loan, you must thoroughly research and compare gold loan interest rates offered by lenders and select the one that suits your repayment capacity.

5 ways to repay a gold loan using a credit card

Repaying a gold loan through a credit card offers flexibility and convenience, providing borrowers with various options to manage their loan payments efficiently. Leveraging the features of a credit card can simplify the repayment process while offering additional benefits. Here are five distinct methods that you can explore to repay your gold loan seamlessly using a credit card:

  1. Direct payment through the lender's website: Many lenders allow direct repayment of gold loans through their website using your credit card. Simply log in to your account, select the payment option, and enter your credit card details to clear your dues instantly.
  2. Mobile app transactions: Utilise the lender's mobile app to repay your gold loan with a credit card. Access the app, navigate to the payment section, input your credit card information, and complete the transaction hassle-free.
  3. Auto debit facility: Some lenders offer an auto-debit feature, enabling automatic deduction of your gold loan instalment from your linked credit card. Enrol in this service for a seamless repayment experience without manual interventions.
  4. Visit the nearest branch: Visit the lender's nearest branch and make the payment using your credit card. The staff will assist you through the payment process, ensuring your loan repayment is completed efficiently.
  5. Phone payment services: Call the lender's customer service helpline and inquire about credit card repayment options. They might assist you in processing your  gold loan repayment via phone transaction, providing convenience at your fingertips.

However, you must plan your repayment carefully and pay credit card bills on time to avoid a debt trap.

Points to ponder before taking the plunge into credit card repayment

Before repaying a gold loan using a credit card, it is important to consider a few crucial aspects. While the idea might seem convenient, especially during urgent financial needs, it can bring additional financial pressure if not handled wisely. Always assess the pros and cons before moving ahead.

Here are some important points to keep in mind:

  • High interest on credit cards – If credit card dues are not cleared on time, interest rates can be significantly high, increasing your financial burden.
  • Check lender policy – Not all lenders accept credit card payments for loan repayment. For example, Bajaj Finserv Gold Loan does not offer the facility to repay the loan using a credit card.
  • Hidden charges – Credit card payments may come with processing fees or additional charges.
  • Risk of debt trap – Using one form of credit to repay another can lead to a cycle of debt if not managed carefully.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is the maximum repayment tenure of a gold loan?

Bajaj Finance offers a maximum repayment tenure of up to 12 months. This flexible gold loan repayment period allows you to choose a duration that suits your financial situation while unlocking the value of your gold jewellery.

Can I pay my gold loan using a credit card?

Most lenders, including Bajaj Finance, do not offer the option to repay a gold loan using a credit card. While some financial institutions may permit this through third-party platforms, it is best to confirm with the lender before proceeding.

What are the charges for paying a gold loan through a credit card?

If permitted by the lender or through a payment gateway, paying a gold loan via credit card may attract processing fees and service charges. These charges vary by platform and bank, and can increase your overall repayment amount.    

Is it safe to repay a gold loan using a credit card online?

Security depends on the platform used. Payments through authorised and secure gateways can be safe. However, Bajaj Finance does not accept credit card payments for gold loan repayment, so this option is not applicable in this case.

Will using a credit card for gold loan payment affect my credit score?

Paying any dues with a credit card does not directly impact your credit score. However, if you fail to pay the credit card bill on time, it can lower your credit score due to delayed payments and increased debt.

Can I earn reward points by paying my gold loan with a credit card?

Reward points depend on the card issuer’s policy. Some banks may offer points on utility or loan repayments, while others may exclude such transactions. Since Bajaj Finance does not accept credit card payments for gold loans, this does not apply.

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