A quick guide to availing Gold Loan for home renovation

Learn how to use a gold loan for your home renovation project with our comprehensive guide.
A quick guide to availing Gold Loan for home renovation
2 min read
18 June 2025

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 70 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: Select and open the online application form.

Step 3: Fill in the first and last name as it appears on PAN card.

Step 4: Enter the 10-digit mobile number and select the city.

Step 5: Enter the OTP sent to the registered mobile number and submit the application.

Step 6: 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.

Apply online for a gold loan today

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.

Frequently asked questions

What is a gold loan and how can it help with home renovation?

A gold loan is a secured loan where you pledge your gold jewellery to get funds. Bajaj Finance offers gold loans that can be used for various purposes, including home renovation, helping you manage expenses quickly without selling your valuable gold.

What documents are required to apply for a gold loan for home renovation?

To apply for a gold loan with Bajaj Finance, you need basic KYC documents like- Aadhaar card, voter ID, passport, driving licence, NREGA job card or a letter from the NPR. These are required to verify your identity and process your loan application smoothly.

How much loan amount can I get against my gold for renovation purposes?

Bajaj Finance offers gold loans starting from Rs. 5,000 and going up to Rs. 2 crore, depending on the value and purity of the gold you pledge. The final amount is based on the loan-to-value ratio set by the RBI.

Can I repay the gold loan in flexible instalments?

Yes, Bajaj Finance offers multiple repayment options, including monthly, bi-monthly, quarterly, half-yearly or annual instalments. You have to pay any pending interest or principal amount by the end of the tenure.

Is there any restriction on how I use the gold loan amount?

No, Bajaj Finance does not restrict how you use the gold loan amount. Whether for home renovation, education, or any other personal expense, you are free to use the funds as per your needs in accordance to the guidelines set by RBI.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

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