A Quick Guide to Availing Gold Loan for Home Renovation

Why choose a gold loan for home renovation?

Are you planning to renovate your home but worried about the financial burden it may bring? Consider availing a gold loan for your home renovation needs. A gold loan allows you to utilise the value of your gold jewellery or ornaments to secure funds for your renovation project.

A gold loan is a secured loan where you pledge your 18-22 karat gold jewellery as collateral to a lender in exchange for funds. The loan amount is determined based on the value of the gold that you provide as security. One of the significant advantages of a gold loan is that it does not require a high credit score or extensive documentation. It provides a quick and hassle-free way to access funds for your home renovation project.

Here are three major reasons why people choose to renovate their homes and take a gold loan for home improvement.

• For a safer home – Renovating your home is essential for your safety. Upgrading electrical systems prevents hazards like fires. Replacing old plumbing prevents leaks and water damage. Installing sturdy windows and doors enhances security. Removing asbestos or lead-based paint improves indoor air quality. Prioritising safety ensures a secure and comfortable living environment for you and your loved ones.
• For aesthetic appeal – Updating the decor, adding stylish elements, and selecting pleasing colour schemes can transform the overall look and feel of your home. A well-designed and visually pleasing home not only brings joy and satisfaction but also creates a welcoming atmosphere for you and your guests.
• For a special occasion – Indian families often repaint their homes before upcoming celebrations like weddings or engagements to create a fresh and vibrant ambiance, reflecting the joyous spirit of the occasion.

How to apply for a gold loan from Bajaj Finance?

Any Indian citizen between the ages of 21 and 80 years can apply for a gold loan. You just need any one of your KYC documents for gold loan - Aadhaar Card, voter ID card, driving licence, or passport to avail of a gold loan from Bajaj Finance.

Follow a few simple steps to get a quick gold loan:

Step 1: Navigate to the Bajaj Finserv Gold Loan page.

Step 2: Click on “Apply” to start your online application

Step 3: Enter your 10-digit mobile number and click on “Get OTP”

Step 4: Submit the OTP to verify your identity

Step 5: Fill in your personal details and choose the nearest gold loan branch

Step 6: Download the in-principal loan eligibility letter

Set up an appointment at the nearest gold loan branch, from the options displayed, and bring the gold jewellery there in person for evaluation.

To plan your repayments and manage your finances effectively, you can also use a gold loan calculator. This handy tool allows you to calculate your instalments based on the loan amount, interest rate, and tenure. By inputting these details into the calculator, you can quickly determine the total interest payable over the loan tenure. This enables you to assess your affordability and choose a repayment schedule that suits your financial capabilities.

Common mistakes to avoid when applying for a gold loan for home renovation

Taking a gold loan for home renovation is a smart move, but a few common mistakes can affect your experience. Avoiding these can help you fully enjoy the benefits of gold loan without stress:

• Not checking the lender’s credibility or storage safety for pledged gold.
• Ignoring the gold loan interest rate and repayment options.
• Overlooking processing fees and hidden charges.
• Pledging low-purity gold without understanding the valuation impact.
• Not verifying your gold loan eligibility before applying.

Stay informed for a smooth loan process.

Before you pledge your gold, know your options. Check your gold loan eligibility and choose the right amount and tenure.