How to Get a Loan Against Gold Jewellery

What is a jewel loan and how does it work

A jewel loan, or loan against gold jewellery, is a simple way to get funds by pledging your gold ornaments instead of selling them. It is a secured loan, which means your gold acts as collateral, making the process quick and easy. The eligibility requirements are minimal, and the documentation is straightforward, so you can access money without long waits. Interest rates are often lower than unsecured loans, making it a cost-effective choice. With Bajaj Finance, you can get high per-gram value for your gold, helping you make the most of your idle jewellery. Just a few easy steps, and your funds are ready.

Benefits of taking a loan against gold jewellery

Opting for a loan against gold jewellery offers a convenient and cost-effective way to meet your financial needs without liquidating your assets. This type of loan is not only easy to access but also comes with several borrower-friendly features that make it a preferred option during emergencies or planned expenditures. Here are the key benefits of taking a gold loan:

• Quick disbursal: Gold loans are processed swiftly, often within one branch visit, making them ideal for urgent financial requirements.
• Minimal documentation: The application process involves basic KYC documents, ensuring a smooth borrowing experience.
• Lower interest rates: Compared to unsecured loans, gold loans generally come with more affordable interest rates.
• No impact on credit score: As long as you repay on time, gold loans do not affect your credit score significantly.
• Retain asset ownership: You get back your gold ornaments once the loan is repaid, keeping your valuables intact.
• Flexible repayment options: Many lenders offer multiple repayment tenures and modes, suiting your financial convenience.
• Free insurance of pledged gold: In most cases, lenders offer complimentary insurance on your gold assets while in custody.

How to get a loan on gold jewellery with quick disbursal

If you are looking for quick funds, availing a loan on gold jewellery is one of the fastest financing solutions. The application process is simple and often leads to same-day disbursal.

With Bajaj Finance, you can avail competitive rates and a transparent loan structure. You can either visit our nearest gold loan branch or apply online on our App and website. Post that, you need to take the gold jewellery for evaluation and documents for verification. The gold is evaluated for purity and weight, and once approved, the loan amount is disbursed—often within one branch visit.

For more guidance on the process, you can read about how to get gold loan and make an informed decision. This ensures you get the funds you need without unnecessary delays.

How to get the best loan amount for your gold

To get the best loan amount against your gold jewellery, it is important to understand how lenders evaluate your ornaments. The loan amount is primarily based on the purity and weight of the gold, along with current market prices. Jewellery with higher purity, generally between 18 karat and 22 karat, fetches a better valuation, which can lead to a higher loan amount. Additionally, lenders exclude non-gold elements such as stones and beads during the valuation. Clean, high-purity ornaments usually receive a more favourable offer. Comparing multiple lenders is also advisable, as loan-to-value ratios and interest terms vary. Choosing a lender that offers a higher loan-to-value ratio, combined with clear terms and competitive rates, will help you maximise the amount you can borrow against your gold.

Things to consider before taking a jewel loan

Before applying for a jewel loan, there are several important factors to take into account. Start by evaluating the interest rate, repayment tenure, processing fees, and any additional charges that could affect the total cost of borrowing. The loan-to-value ratio, which determines how much money you can get against your gold, also plays a key role. It’s equally important to assess your own repayment capacity to ensure timely and stress-free repayment. Using digital tools like a jewel loan calculator can help you estimate the loan amount, tenure, and interest payable, allowing for better financial planning. Bajaj Finance ensures the gold loan process is reliable, transparent, and easy to understand. Considering these points carefully will help you choose a gold loan that aligns with your financial needs and repayment ability.

Repayment options for a gold loan

When you take a gold loan, Bajaj Finance offers multiple repayment options to suit different financial situations. You can choose to repay the interest on monthly, bi-monthly, quarterly, half-yearly, and annually and any pending interest or the principal amount by the end of thetenure. You can also choose to part-pay or foreclose the loan without any extra charges, providing greater flexibility. Selecting the right repayment method depends on your cash flow and financial planning. Each repayment option has its own advantages, so choose one that helps you manage your finances efficiently without straining your monthly budget.

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

The value of your gold jewellery plays a vital role in determining how much you can borrow under a gold loan. Lenders assess the purity and weight of the gold to calculate its worth. With Bajaj Finance, jewellery between 21 to 70 karat purity is eligible for higher valuation. The non-gold elements, such as stones, gems, and other decorative components, are excluded from the evaluation. Once the net gold weight is confirmed, it is multiplied by the current market price of gold to arrive at the final value. Based on this valuation, a loan-to-value ratio is applied, usually up to 75%, to determine the maximum loan amount. This process ensures that the loan is granted fairly, based on the actual worth of your gold ornaments.

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 from Rs. 5,000 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.
• Gold loan renewal: You may renew your gold loan at the end of loan tenure, subject to LTV being as per regulatory norms. A fresh credit appraisal will be done by us prior to renewal. However, renewal post actual loan maturity date is restricted.
• Gold loan top-up: You can apply for a top-up on your existing gold loan before its maturity, as long as the loan-to-value (LTV) remains within regulatory limits and a fresh credit assessment is completed by us. However, if your loan has passed its maturity date but is still active due to outstanding dues, a top-up is not allowed.