What is a Gold Loan

Read Also: How to get a quick loan against gold jewellery

Borrowers can choose from various repayment options, including paying only the interest during the tenure and settling the principal at the end. The gold remains securely stored with the lender until the loan is repaid in full. Interest rates for gold loans are generally lower than unsecured loans due to the secured nature of the borrowing.

To estimate the loan amount, borrowers can use a gold loan calculator, which provides an approximate value based on current gold rates. This ensures transparency and helps in financial planning. A gold loan is an efficient way to access funds while retaining ownership of your gold.

Getting a loan against your gold jewellery is one of the easiest ways to meet any unplanned expense. To get a gold loan from Bajaj Finserv, you can apply online, and we will call you and guide you on the next steps or you could simply visit the nearest gold loan branch in your city. To apply for an online gold loan, you need to follow the below mentioned steps:

1. Click on ‘APPLY’ to open our online application form
2. Enter your 10-digit mobile number and click on ‘GET OTP’
3. Submit the OTP to verify your identity
4. Select your state and city to find the branch nearest to you
5. Enter your full name and date of birth as per your PAN
6. Set up your appointment at our branch

Once done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.

How to get a gold loan?

Obtaining a gold loan is a straightforward process, providing quick access to funds. To start, visit a lender like Bajaj Finserv with your gold jewellery and necessary KYC documents. The lender will evaluate the purity, weight, and current market value of your gold, which determines the loan amount you can borrow.

Once the gold is assessed, the lender offers a loan based on its value, and after completing the verification process, the loan amount is disbursed. The interest rates for gold loans are typically lower than unsecured loans since they are secured by collateral.

Repayment terms are flexible, with options like monthly, quarterly, or bullet repayment. At the end of the loan tenure, you can repay the amount along with interest, and the lender will return your gold. Gold loans offer a great way to meet urgent financial needs without selling your cherished jewellery.

What are the gold loan interest rate and charges?

We offer one of the lowest gold loan interest rates, starting at just 9.50% per annum. To see the complete list of charges on gold loan, please visit gold loan fees and charges page.

What are the documents required for a gold loan?

The list of gold loan documents is limited to just proof of identity and proof of address. To avail of a gold loan you just need any one of your basic KYC documents for gold loan like:

• Aadhaar card
• Voter ID card
• Passport
• Driving licence
• NREGA job card
• Letter issued by National Population Registration

Who is eligible to apply for a gold loan?

Gold loan eligibility criteria are easy to meet. You simply need to be an Indian citizen aged between 21 and 70 years. Make sure that your gold jewellery is of 18-22 karat before you complete your gold loan application.

What are the benefits of gold loan?

• Low interest rate: It is important to remember that high-interest rates can lead to a higher repayment amount in the long run. With Bajaj Finance you can get a loan against your 18-22 karat gold jewellery with interest rates starting at just 9.50% p.a.
• High loan amount: Know the current market value of your gold to avoid borrowing more than necessary. Consider the per gram rate of gold, as it determines the amount you can borrow against your gold jewellery.
• Multiple repayment options: Look for lenders offering multiple repayment for gold loan schedules to suit your financial capabilities. You can choose to pay your loan interest monthly, bi-monthly, quarterly, half-yearly or annually.
• Security measures: We offer free insurance of gold to cover your pledged gold jewellery against theft and misplacement. With our comprehensive security measures to safeguard your pledged gold, your gold jewellery is kept safe in secure vaults with constant surveillance.
• No part-prepayment or foreclosure charges- We do not charge any additional amount for part-prepayment or foreclosure of your gold loan. In cases the Borrower closes the loan, interest on a pro-rated basis will be applicable.

Read Also: How can a gold loan help you start a small business

Gold Loan Tenure: Understanding the Duration and Terms

A gold loan, also known as a loan against gold, is a secured loan where borrowers pledge their gold jewellery or ornaments as collateral to receive funds. Understanding the gold loan tenure is crucial to managing repayments effectively. The gold loan meaning encompasses the loan amount, interest rate, and repayment schedule.

Gold loan tenures typically range from a few months to a few years, depending on the lender's policies and the borrower's needs. To understand how does gold loan work, note that you can choose from multiple repayment options. You can opt to pay just the interest on monthly, bi-monthly, quarterly, half-yearly, or annually as per your convenience, with the principal amount repaid at the end of the tenure. This flexibility allows borrowers to select a repayment plan that best suits their financial situation and ensures that they can manage their commitments without undue stress. Understanding these aspects helps in choosing the right tenure for your gold loan.