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Gold has always been a trusted asset for many Indians, and it is easy to see why—you can rely on it in times of need. Instead of selling your gold, you can use your idle gold to get a loan, turning it into quick funds whenever required.
When considering a gold loan, the interest rate is something you should pay attention to, as it directly impacts how affordable your repayment will be. Since your gold acts as collateral, gold loans usually have lower interest rates compared to other types of loans. With Bajaj Finance, you can get a gold loan at rates starting from just 9.50% to 24.25% per annum, making it a smart and cost-effective option.
Key takeaways
Due to the high value of gold on the market, it is easier to get a bigger loan against gold jewellery, ornaments or coins. Most lenders will give you up to 85% of the total value of the gold you pledge, which is in line with RBI rules.
Bajaj Finance offers gold loans starting from Rs. 5,000 to Rs. 2 crore against 18-22 karat gold jewellery or ornaments. You can also pledge gold coins up to 24 karat karat purity.
The interest on your loan is also affected by the repayment tenure and frequency you choose. If you opt for a gold loan payback plan with more frequent payments, your interest rate can be lower. If you choose a plan with fewer payments, your interest rate could be higher.
Hence, when figuring out the interest rate on your gold loan, look at things like the loan amount and how often you pay it back. You can also use our online gold loan calculator to determine your payable frequency to plan your financial journey better.
The interest rates on gold loans are also affected by factors outside of the loan. There could be inflation, changes in the price of gold around the world, or a gap between demand and supply in the gold market. Lenders keep a close eye on these rates because they have a direct effect on the value of the gold. Most of the time, when the price of gold goes up, interest rates go down, making it easier for you to pay back a loan.
Gold loans are usually easy to apply for and do not require much paperwork. However, some lenders may ask for proof of your monthly income when you apply. If you have a steady source of income, some lenders may offer you a lower interest rate on the loan amount you want because they believe you will be able to pay it back. But it is important to know that Bajaj Finance does not solely rely on the income for a gold loan. Your KYC papers are enough.
Quick tip: Know how much you can borrow on your gold jewellery—check your gold loan eligibility instantly for a smooth and transparent process.
When you take a gold loan, the interest rate is one of the first things to consider, as it affects how much you will ultimately repay. Since your gold acts as collateral, gold loan interest rates are generally lower than many other loans. Along with interest, there may be additional charges like processing fees, convenience costs, or stamp duty. Knowing these charges upfront helps you plan better and avoid surprises, making your borrowing experience smooth and predictable.
Here is a quick glance at the interest rates and processing fee.
| Particulars | Details |
|---|---|
| Interest rate | 9.50% to 24.25% per annum |
| Processing fee | 0.20% of loan amount |
| Minimum processing fee | Rs. 150 (inclusive of taxes) |
| Maximum processing fee | Rs. 1000 (inclusive of taxes) |
Getting a gold loan is designed to be simple, so you can access funds quickly when you need them. All salaried and self-employed individuals, pensioners and homemakers can apply for this loan. Generally, all you need is your gold and basic KYC documents. The value, purity, and weight of your gold determine the loan amount you are eligible for. You just have to be an Indian citizen between 21 and 80 years of age and have 18-22 karat gold jewellery or ornament to pledge as collateral. You can also pledge gold coins up to 24 karat karat gold purity. While the process is straightforward, it is always suggested to understand the complete gold loan eligibility criteria before applying so that there are no unexpected hurdles.
Quick tip: Wondering how much you can borrow on your gold? Just check your gold loan eligibility—it takes seconds and minimal paperwork!
Applying for a gold loan is easy and convenient. You can apply for gold loan online via the Bajaj Finance App or website or simply visit your nearest branch for in-person assistance. Bring your gold and KYC documents, and the loan amount is evaluated based on the value of your gold. Loan amount is based on eligible LTV, actual purity, and the lower of the previous day’s closing price or 30-day average closing price (IBJA or SEBI-regulated exchange). Once approved, the funds are disbursed directly to your account, making it a fast and hassle-free way to access money exactly when you need it.
Currently, with us, you can get a gold loan at interest rate starting from 9.50% to 24.25% per annum.
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *
