What is loan against gold jewellery?

2 min read
07 November 2023

A loan against gold jewellery, also known as a jewel loan, is a type of secured loan where you can borrow money by using your gold jewellery as collateral.

Like any other secured loan, a jewel loan is easy for you to avail with minimum eligibility criteria and simple documentation. Accessing financing is quick and easy because you just need to offer your gold as collateral.

With us, you can get high per-gram financing in the form of a jewel loan. When you need immediate funds, you can utilise the underlying value of your idle gold jewellery to avail of a gold loan.

You just need to follow a few simple steps to apply for a loan with ease.

Steps to avail a loan against gold jewellery

Step 1: Click on ‘APPLY’ to open our online application form.

Step 2: Enter your 10-digit mobile number and click on ‘GET OTP.’

Step 3: Submit the OTP to verify your identity.

Step 4: Select your state and city to find the branch nearest to you.

Step 5: Enter your full name and date of birth as per your PAN.

Step 6: Set up your appointment at our branch.

Once done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.

Features and benefits of jewellery loan

Here are some of the common features and benefits of a gold loan.
  • High loan amount: You can easily meet any planned or unplanned needs with a high-value gold loan of up to Rs. 2 crore. You can avail up to 75% of your gold’s value as the loan amount.
  • Accuracy and transparency: During gold jewellery evaluation, you can rest assured of accuracy and transparency in the evaluation of your jewellery. We utilise industry-grade karat metres, so you get the right financing value for your gold.
  • Convenient repayment: You can choose from a range of repayment options to suit your budget. You can pay interest monthly, bi-monthly, quarterly, half-yearly, or annually as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
  • Facility for partial release: Should you need a part of the pledged ornaments midway, there is an option to avail the partial release of the gold items but after you repay the equivalent amount.
  • Prepayment options: You have the option to part-prepay or foreclose your loan account anytime before the end of the tenure at no additional cost.
  • Free insurance of pledged gold: We offer free insurance of the pledged gold, which covers it against theft, fire, and other natural calamities, providing added protection. Your gold ornaments are kept in highly secure vaults under 24/7 surveillance.

Jewel loan interest rates and charges

You can get access to the necessary funds by pledging your gold jewellery and repaying the interest at competitive jewel loan interest rates.

Keep a check on the gold market rates and inflation rates to time your financing properly. Arrange all necessary documents before applying for the loan against jewellery to experience hassle-free processing of your application.

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Frequently asked questions

What is a jewel loan?

A jewel loan is a secured form of finance, where you can get funds against your 18-22 karat gold jewellery, which is submitted to the lender as collateral.

What is the interest rate on a jewel loan?

Bajaj Finance charges nominal jewel loan interest rates, starting from 9.50% per annum.

How is jewel loan interest calculated?

The frequency of your repayment plan influences the interest levied on your jewel loan. By choosing a repayment plan with more frequent and regular interest payments, you stand to get a lower jewel loan interest rate.

Can we get loan on jewellery?

Yes, you can get a loan up to Rs. 2 crore against 18-22 karat gold jewellery. Note that other forms of gold are not acceptable as collateral.

Can I take gold loan against gold coins?

Gold is usually accepted as collateral more readily when it is in the form of gold jewellery rather than a gold loan against gold coins. This is because jewellery has a standardised value and is easier to assess for its purity and authenticity, making it a preferred choice for gold-backed loans.

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