What is a gold loan scheme?
Financial institutions offer funds against gold under various gold loan schemes to cater to the varying needs of borrowers. These loans come with different features and facilities to suit distinct financing requirements and repayment conveniences. The best scheme for a gold loan brings out the right balance of factors such as per gram rate, flexibility of choosing the tenure, and the maximum loan cap.
You can choose from a comprehensive suite of gold loan repayment options that goes with your financial standing. This can help you meet the total repayment liability in time. To give you a wider understanding of the financing option, here is how you can avail of a gold loan.
What are the gold loan schemes available in India?
The Indian government does not directly offer gold loans to individuals like private lenders or banks do. However, it supports and regulates certain gold-linked schemes and facilitates access to gold loans through public sector banks. Here are key schemes and government-supported avenues:
1. Gold Monetisation Scheme (GMS)
- Purpose: Not a loan, but a deposit scheme to mobilise idle gold.
- Launched by: Government of India via banks.
- Benefit: Earn interest by depositing your gold for short, medium, or long term.
Note: This scheme does not offer loans, but helps utilise gold holdings productively.
2. Gold loan schemes via public sector banks
Government Banks offer government-supported gold loan products:
- MSME Gold Loan Plus – for small business owners with Udyam registration.
- Swarna Loan– available for agricultural and personal needs.
These schemes are regulated by the RBI and aligned with government initiatives to increase financial inclusion, especially for rural and underserved sectors.
**Please note that Bajaj Finance is not associated with any government gold loan scheme and independently offers gold loans based on its own terms, conditions, and eligibility criteria.
What are the steps of taking a gold loan
You can also easily apply online by following these simple steps:
- Click on “Apply” to initiate online application.
- Enter your 10-digit mobile number and click on “Get OTP.”
- Submit the OTP to verify your identity.
- Fill in your personal details.
- Select the nearest gold loan branch.
Once your application is submitted, our representative will contact you to confirm your appointment and guide you on the next steps.
After this, the lender proceeds to evaluate the pledged gold and decides on a suitable loan amount and other loan terms accordingly. Once verified, you receive the loan advance soon after.
Before applying for a gold loan, make sure to check the maximum loan availability with the help of a gold loan calculator. The financial tool also allows you to assess the instalments payable based on the loan amount available.
Read Also: A complete guide to gold loan balance transfer
Features and benefits of gold loan scheme in India
The best gold loan schemes available in India today come with the following top features and benefits:
- High loan amount: You can avail of a loan starting from Rs. 5,000
up to Rs. 2 crore to meet your expenses. - A high per gram rate: The best lending institutions extend high per gram rates on gold. This helps you maximise your loan accessibility. RBI caps this rate at up to 75%, with possible variations under specific circumstances.
- Free gold insurance: We also provide free insurance coverage for the pledged gold to eliminate loss due to theft or misplacement.
- A suite of repayment options: Borrowers can choose from a comprehensive suite of options for convenient and affordable repayment of gold loans.
- Secured storage facilities: When handing over your pledged gold, be assured of the item’s storage in world-class vaults, under 24*7 surveillance.
- Prepayment options: Choose to part-prepay your loan amount or foreclose the account at any time before the tenure’s end. This facility comes without any charges.
- Part-release facility: Bajaj Finance also provides the option for part-release of pledged gold against an equivalent repayment made by you.
- Attractive rates of interest: Top schemes of gold loans also offer the best gold loan interest rates to make financing affordable for all.
Compare different offers from available lenders to choose your gold loan scheme wisely. Use a gold loan calculator to estimate repayment liability and apply for a suitable loan accordingly.
Read Also: How does the gold rate affect your gold loan
How does a gold loan scheme work?
A gold loan scheme from is a quick and reliable way to access funds by pledging gold jewellery. The process is simple, transparent, and ideal for urgent financial needs.
- Download the Bajaj Finserv App or website to apply online.
- You can also visit the nearest Bajaj Finserv Gold Loan branch.
- Submit any one of your basic KYC documents.
- Gold jewellery is evaluated in your presence for weight and purity.
- Based on the gold’s value, a loan amount is offered.
- Choose a suitable gold loan tenure (from 1 day to 12 months).
- Once approved, the loan amount is transferred to your bank account.
- Repay through convenient interest repayment options.
- After complete repayment, your gold is safely returned.
Your pledged gold is stored securely in protected vaults with 24x7 surveillance and covered under a free insurance against theft and misplacement. The entire process is transparent with no hidden charges, offering a hassle-free experience for anyone looking to leverage their gold for short-term funding.
Eligibility criteria for gold loan schemes
Bajaj Finance has kept the gold loan eligibility criteria simple and inclusive. The aim is to help a wide range of individuals access instant funds using their gold assets.
- You must be an Indian citizen.
- Age must be between 21 to 70 years.
- You should own gold jewellery of 18-22 karat.
The simplicity of these criteria means that even those who are not eligible for other types of loans can easily qualify for a gold loan. There are no complicated checks or approvals—just your gold jewellery, easy paperwork, and quick verification. Bajaj Finance ensures a fast-track approval process with minimal documentation, making it one of the most accessible loan types in Kerala and across India.
Benefits of availing a gold loan scheme
Bajaj Finserv Gold Loan offers multiple benefits that make it a popular financing option across India, especially for those looking for quick and stress-free access to funds.
- Quick loan disbursal after gold evaluation.
- Competitive gold loan interest rate starting from 9.50% to 24% per annum per annum.
- Multiple gold loan tenure ranging from a 1 day to 12 months.
- Multiple repayment options—monthly, bi-monthly, quarterly, half-yearly or annual interest repayment.
- No foreclosure or part-prepayment charges.
- No hidden fees or complex procedures.
- Gold is stored securely in protected vaults with high-level safety protocols.
These benefits ensure that your financial planning remains on track without the stress of high repayments or lengthy paperwork. With Bajaj Finance, you can rely on transparency, flexibility, and complete peace of mind while availing funds against your gold jewellery.
Frequently asked questions
To apply for a Bajaj Finserv Gold Loan, you need any one of the basic KYC documents like Aadhaar card, Voter ID, passport, driving licence, NREGA job card or a letter from the NPR, is required, making the process quick and hassle-free.
Bajaj Finance offers gold loans at competitive gold loan interest rates, starting from 9.50% to 24% per annum, depending on the loan amount, gold value, and applicable tenure.
The loan amount is calculated based on the weight, price and purity of your gold jewellery. Bajaj Finance offers up to 75% of the gold’s value as the loan, following RBI guidelines.
Yes, Bajaj Finserv allows foreclosure or part-prepayment of your gold loan at zero additional charges, giving you the flexibility to close your loan early without penalties.
In case of non-repayment, Bajaj Finserv may levy penal interest and initiate recovery proceedings. Continued default could result in the auction of pledged gold after due legal notice.
