Processing charges for a gold loan
Gold loans are affordable financing options that offer competitive interest rates and other associated charges. You must check applicable charges like gold loan processing fees when deciding on a suitable loan offer to assess affordability.
You can use an online Gold Loan Calculator to determine your maximum loan liability to meet per month. Accordingly, you can select a suitable financing option from the available gold loan offers.
Applicable gold loan processing fees
Thanks to improved customer-friendly features, gold loan is now available at low to no processing fees. With Bajaj Finserv, it is convenient to secure 0.15% of the loan amount (inclusive of applicable taxes) for a gold loan.
Subject to a minimum Rs. 99/- (Inclusive of applicable taxes) & maximum of Rs. 600/- (Inclusive of applicable taxes)
Other charges levied on the advance include:
- Stamp duty charges
- Penal charge (In the case of delay in scheduled repayment)
- Convenience fee of Rs. 149 (inclusive of applicable taxes) shall be levied for part release of ornament(s) pledged.
However, all these charges are levied at a nominal rate, adding minimal additional financial burden for the borrower.
Know about interest charged on gold loans
In addition to the processing charges, borrowers are also responsible for paying interest on the gold loan amount. The Gold loan interest rate may vary based on factors such as the loan-to-value ratio, tenure, and prevailing market conditions.
As secured advances, gold loans attract low rates of interest as against several unsecured advances availed for the same purpose. With Bajaj Finance, you can avail of financing with a gold loan minimum interest rate starting at 9.50% per annum.
You have the option to repay interest only initially and postpone principal repayment until the end of the gold loan tenure. It allows the flexibility of managing finances as per your repayment capacity.
With Bajaj Finance, you can obtain a high-value gold loan of up to Rs. 2 crore easily, catering to your financial needs. Your valuable gold jewellery is securely stored in state-of-the-art vaults, safeguarded by round-the-clock surveillance. Additionally, you can rely on the appraisal process for your gold jewellery to be precise and transparent. Bajaj Finance has advanced karat metres, ensuring that you receive the optimal loan amount.
As long as you are an Indian citizen aged between 21 and 70 years, you can easily apply for a Bajaj Finserv Gold Loan. You only need to submit one of the accepted KYC documents, including your Aadhaar Card, voter ID card, driving licence, or passport.
Advantages of applying for a gold loan from Bajaj Finance
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.
Convenient repayment options
We offer multiple repayment options where you may choose to pay 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. The repayment tenure can range from 1 day to 12 months.
No credit score check
Unlike unsecured loans, gold loans do not need you to have an excellent credit history or a great CIBIL Score. Your gold jewellery acts as security for the loan, making lenders more willing to extend credit despite a 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 business expenses, purchase of residential property, home improvement, and more.
Minimal paperwork
The eligibility requirements for a Bajaj Finserv Gold Loan are fairly simple. You just need to provide the necessary KYC documents, like your Aadhaar Card, voter ID card, passport, driving licence, NREGA job card, or a letter from the Nation Population Registration as proof of identity and residency.
Gold loan renewal: Borrowers may renew their 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.
Frequently asked questions
With Bajaj Finance, you just have to pay 0.15% of the loan amount (inclusive of applicable taxes). Subject to a minimum Rs. 99 (inclusive of applicable taxes) and maximum processing fee for gold loan of Rs. 600 (inclusive of applicable taxes).
In the scenario of early closure within 7 days of booking, minimal interest equivalent to 7 days' interest is applicable, despite zero foreclosure charges.
