Gold loans usually come with different repayment options, allowing borrowers to choose a method that suits their financial situation. Understanding these options can make repayment planning easier and more convenient.
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Different modes of gold loan repayment
Gold loans are one of the easiest ways to get funds when you need them quickly. The process is simple, requires very little paperwork, and the money is disbursed in just one branch visit. Unlike personal loans that take days to process, a gold loan works faster because you pledge your gold as security. Another big advantage is that gold loans usually come with lower interest rates than personal loans.
What makes them even better is the flexibility in repayment. With Bajaj Finance, you can choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis, depending on what suits your budget best. Though it is important to note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity
Let’s look at the different modes of gold loan repayment available with other lenders to assist you in selecting the right one for your needs.
Bullet repayment
In bullet repayment, you have the option to repay your gold loan in a single payment at the end of the loan tenure. This means, you pay the entire principal amount at maturity, along with any accrued interest. Alternatively, you can opt for regular repayments—monthly, bi-monthly, quarterly, or half-yearly—based on the repayment schedule chosen at the time of loan disbursement.
Bullet repayment is a suitable choice if you have the financial capacity to make a lump sum payment.
However, it is crucial to ensure that you have the necessary funds to make the bullet repayment on time as agreed. Failing to do so may result in penalties or other consequences for defaulting on the loan.
Interest-only repayment
Here in this interest-only repayment method you can manage your loan obligations effectively. With this approach, you can make periodic payments towards the accruing interest, while the loan principal remains outstanding until the end of the loan tenure. This allows you to focus on repaying only the interest portion for the duration of the loan, and you can settle the loan principal amount in full at the end of the tenure.
Flexible interest payment with partial principal repayment
You have the opportunity to choose a customer-centric repayment option that offers partial principal repayment and convenient interest payment. With this option, you can repay the principal amount in instalments throughout the loan tenure, while having the flexibility to adjust the interest payment according to a schedule that suits you.
This repayment approach provides you with relief from the burden of a fixed monthly liability throughout the entire tenure. By focusing on repaying a significant portion of the principal during the initial stages of the loan, you can effectively reduce your overall interest liability, regardless of the gold loan interest rate.
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 and help in determining your monthly instalments based on factors such as the loan amount, interest rate, and tenure.
Choosing the right gold loan repayment option is vital for a hassle-free borrowing experience. Whether you opt for a repayment option, consider your financial capabilities, preferences, and long-term goals. This will help you make an informed decision and select the most suitable gold loan repayment option for your specific needs.
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Gold loan interest rates
With Bajaj Finance, you get competitive gold loan interest rates ranging from 9.50% to 24.25% p.a. A lower interest rate results in lower repayment and overall cost of borrowing. The gold loan interest rate depends largely on:
- Purity and net weight of your gold
- Current market price of gold
- Loan amount and chosen tenure
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Eligibility for gold loan
Bajaj Finance has a simple and easy to meet gold loan eligibility criteria for gold loan. With us, and you have to:
- Be an Indian citizen
- Be aged between 21 to 80 years
- Have 18-22 karat gold jewellery or ornaments to pledge
- Have gold coins up to 24 karat gold purity
It is inportant to note that Bajaj Finance considers lower of the previous day’s closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange to evaluate the loan amount against your gold jewellery, ornament or coin.
Discover your borrowing potential by checking your gold loan eligibility. It takes just a few clicks and no waiting.
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Application process for gold loan
Applying for a gold loan is quick and simple with Bajaj Finance. You can either apply online via the Bajaj Finance App or website, or in-person by visiting the nearest Bajaj Finance Gold Loan branch. Once the application is submitted, follow these simple steps:
- Get your gold evaluated
- Get your KYC verified
- On approval, funds are disbursed quickly to your bank account
Tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
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Frequently asked questions
Gold Loan
What is the repayment tenure offered for gold loan?
With us, you can choose a repayment tenure, ranging from 1 day to 12 months.
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Disclaimer
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *