How does a short-term gold loan work?
Gold has always been more than an investment — it's a valuable asset that can support you during urgent situations. Whether you need funds for medical emergencies or short-term cash flow needs, a short-term gold loan offers a quick solution without selling your gold jewellery, ornaments, or coins.
With us, you can get gold loan tenures ranging from 1 day to 12 months, helping you unlock the value of your gold whenever required. The process stays simple — apply online or visit your nearest gold loan branch with your gold. We assess its purity and weight in your presence to determine your loan amount, verify your KYC, and disburse funds, typically in a single branch visit.
You can choose between bullet repayment or regular repayment, based on what suits your finances. With minimal processing charges and low interest rates, borrowing stays simple, and your gold remains safe with us throughout. Check your loan eligibility today.
Features of short term gold loans
A short-term gold loan offers quick financing by letting you pledge your gold jewellery as collateral, while you retain ownership throughout. Key features include:
- Loan tenure: Borrow for a period as short as 1 day up to 12 months, making it ideal for urgent financial needs.
- Minimal documentation: Only basic KYC documents are required for quick processing.
- Fast disbursal: Loan amounts starting from Rs. 5,000 up to Rs. 2 crore are credited to your account within hours.
- Multiple repayment options: Choose to pay interest monthly, bi-monthly, quarterly, half-yearly, or annually, while the principal and any pending interest are due at loan maturity.
- Secure storage: Your pledged gold is kept safe in high-security vaults under 24x7 surveillance and is insured for added protection.
Gold loans offer a hassle-free borrowing experience with low interest rates and easy repayment choices, ensuring you can meet your financial requirements without parting with the ownership of your gold assets.
Discover your borrowing potential by checking your gold loan eligibility. It takes just a few clicks and no waiting.
Benefits of choosing a short term gold loan
A short-term gold loan offers financial support while keeping your jewellery secure. Benefits include:
- Lower interest rates compared to personal loans.
- Extended repayment tenure of up to 12 months.
- No impact on credit score, making it accessible for all.
- Quick approval and disbursal to meet urgent needs.
- Multiple repayment options to pay interest on chosen terms.
A Bajaj Finance Gold Loan helps you access your gold's value with a straightforward repayment structure.
How does the loan-to-value (LTV) limit work on a short-term gold loan?
As per RBI's tiered LTV structure, the maximum LTV depends on your loan amount:
| Loan amount | Maximum LTV |
|---|
| Up to Rs. 2.5 lakh | 85% |
| More than Rs. 2.5 lakh to Rs. 5 lakh | 80% |
| More than Rs. 5 lakh to Rs. 2 crore | 75% |
The LTV ratio must be maintained throughout your loan tenure. For bullet repayment loans, this calculation includes both principal and interest payable at maturity.
Repayment options for short term gold loans
You can repay your gold loan using one of two structures:
- Bullet repayment: Principal and interest due are paid together at maturity
- Regular repayment: Interest is paid at half-yearly intervals as per the repayment schedule, with the principal due at maturity
This structure helps you plan your finances efficiently while retaining your gold throughout the loan tenure. Review your gold loan repayment option before applying.
Not sure if you qualify? Check your gold loan eligibility and plan your next move.
