Benefits of Taking a Gold Loan

Benefits of Bajaj Finserv Gold Loan

Sometimes, life throws in expenses—whether planned or completely unexpected—and you may find yourself needing quick funds. In such moments, instead of breaking your investments or going through the lengthy process of other loans, a loan against gold jewellery can be a smart, convenient, and faster option to consider.

Here are a few advantages of getting a gold loan to manage your expenses.

Make idle assets work for you

Unlike a fixed deposit, which pays you dividends over time, gold sitting in your locker does not help you in any way. When you take a gold loan, you can put this idle asset to use and get a high loan ranginf from Rs. 5,000 to Rs. 2 crore against it.

When you apply for a gold loan, your jewellery is weighed and valued as per the prevailing gold rates, not the rate at which you purchased it. Since gold is an appreciating asset, the loan amount you are offered is usually higher than the cost of the jewellery.

For example, in March 2010 Supriya purchased a 22-carat gold necklace for Rs. 1 lakh. She wants to get a loan against it in 2022, and applies for the loan in March 2022. When Surpriya’s necklace is evaluated, the gold prices have increased. Hence, the necklace is calculated to be worth Rs. 1,50,000 in March 2022. In this case, Supriya will be offered a loan of Rs. 1,50,000 against her necklace, instead of Rs. 1 lakh.

Get funds faster

It is very easy to apply for and get a gold loan from Bajaj Finance. This makes it ideal when you need funds quickly, and do not want to pay the higher interest rates that come with unsecured loans.

To get the gold loan benefits, you simply have to fill out an online application form. After this, we will contact you to set an appointment at our nearest gold loan branch. You will need to take your jewellery there for evaluation. The process of evaluation itself only takes a few minutes.

Once your offer is ready based on the value of your jewellery, the funds are disbursed to your bank account often in just 1 branch visit*. Additionally, you do not need to maintain a high credit score or provide extensive proof of income to get this loan. This makes the paperwork process much faster.

Repay at your ease

With us, you can avail a preyament option from the multiple repayment options as per your convenience. You can choose to repay gold loan interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis 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.

Low interest rates

Low interest rates on a gold loan can impact your borrowing experience significantly. With Bajaj Finance, for instance, you can access funds at competitive rates, starting from just 9.50% to 24% p.a., making it an affordable solution for your financial needs. This can help you save on interest costs, manage your expenses, and ensure a smooth repayment experience. 

Pro-tip: You can also use the online gold loan calculator on our website to get an estimate before visiting a branch. This helps you plan better and understand your loan eligibility.

Minimal paperwork

With us, the documentation process is very easy and straightforward. For verification, you just have to get any one of the listed necessary KYC documents- Aadhaar card, Voter ID, passport, driving licence, NREGA job card or a letter from the National Population Registration. 

No credit score dependency

Unlike unsecured loans, gold loans are not solely dependant on your credit history or CIBIL Score. Your gold jewellery acts as security for the loan, making lenders more willing to extend credit despite no credit history or low credit score.

Tax benefits on gold loan

Gold loan not only helps you manage your urgent needs, but also comes with several tax benefits. However, the tax benefits you may get depends on the usage of the funds and the quantum of gold loan utilised. Taking a gold loan can get you Income Tax exemptions for purchase of residential property, home improvement, and more.

Free insurance of gold

One more benefit of taking a gold loan with us is the free insurance on your pledged gold. While your jewellery remains in our custody, it is kept in advanced, highly secure vaults and fully covered against theft or loss. This ensures borrowers enjoy a truly stress-free loan experience.

Step by step procedure to apply for a gold loan

Here is a step wise process to apply: 

1. Click on ‘APPLY’ to open our online application form
2. Enter your 10-digit mobile number and click on ‘GET OTP’
3. Submit the OTP to verify your identity
4. Enter your personal details and select the branch nearest to you
5. Download the In-principal loan eligibility letter 

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

Not sure if you qualify? Find out in moments— check yourgold loan eligibility and plan your next move confidently.