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Why gold is more than just an investment today
Gold has always been special in India—it is not just jewellery, but a symbol of wealth and security passed down through generations. People trust it because it has always held its value, making it one of the safest investments you can own.
But times are changing, and gold is now more than just something to keep locked away. Many people are using it smartly to handle their planned or urgent needs. Whether it is paying for medical bills, renovating your home, or funding higher education, a gold loan can step in to give you quick support. It is not only handy for planned expenses but also a real lifesaver when unexpected situations like hospitalisation come up.
What do we mean by gold pawn?
Gold pawn or gold loan is essentially a type of loan where you can pledge your gold with a lender in exchange for funds. The loan amount sanctioned is dependent on the weight and current market value of the gold being pledged. It is a short-term loan that provides a quick solution to ensure that your financial needs are met without having to sell your gold.
A gold pawn, also known as a pawn loan or pawnbroking, is a financial transaction where you use your gold possessions as collateral to secure a loan from a pawnbroker. In a gold pawn transaction, you bring your gold items to a pawn shop, and the pawnbroker assesses their value. Based on the appraisal, the pawnbroker offers you a loan amount, typically a percentage of the gold's appraised value. If you accept the loan offer, you leave your gold items with the pawnbroker as collateral, and they give you the loan amount in cash. The pawnbroker holds onto your gold until you repay the loan, usually with interest, within a specified period. If you fail to repay the loan according to the terms agreed upon, the pawnbroker may keep your gold items and sell them to recover the loan amount.
Difference between gold pawn and gold loan
A gold pawn and a gold loan both allow you to borrow money by keeping your gold as security. However, they differ mainly in who provides the loan and how the lending process is regulated.
| Gold pawn | Gold loan |
|---|---|
| Usually offered by a pawnbroker. | Offered by a bank or regulated financial institution such as an NBFC. |
| You hand over your gold as security for the loan. | You pledge eligible gold jewellery, ornaments or coins as collateral. |
| Terms and processes depend on the pawnbroker. | The loan follows applicable regulatory requirements and lender policies. |
| If you do not repay, the pawnbroker may sell the pledged gold to recover the dues, as permitted by applicable law. | If you do not repay, the lender may auction the pledged gold after following the applicable regulatory and contractual process. |
With a gold loan, the lender assesses your gold based on factors such as purity, weight and value before determining the eligible loan amount. RBI guidelines also set maximum LTV limits for gold loans. Once you repay the loan and applicable dues, you can get your pledged gold back.
If you are considering a gold loan, compare the interest rate, applicable charges, LTV, repayment terms and auction-related conditions before choosing a lender.
Thinking of applying for a gold loan? Start with a simple step—check your gold loan eligibility today.
Gold loan interest rates and charges
When you choose a gold loan, the interest rate is the main part that affects how much you repay, and it stays competitive to keep borrowing affordable. Bajaj Finance offers interest rate ranging from 9.50% to 24.25% p.a. There is a small processing fee on the loan amount, along with a few other minimal charges, all of which is mentioned upfront on our gold loan interest rate page. The best part is that there are no foreclosure charges, so you can repay your loan early without paying anything extra. Everything is clear and upfront, making it easy to plan your repayments.
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Gold loan eligibility criteria
Availing a gold loan from Bajaj Finance is simple because of its easy process and easy to meet eligibility. You just need to be an Indian citizen between 21 and 80 years of age and have 18-22 karat gold jewellery or ornaments to pledge. You can also pledge gold coins up to 24 karat purity. There is no need to worry about a high credit score or complicated paperwork.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
Gold loan application process
Applying for a gold loan with Bajaj Finance is quick and convenient. You can either visit the nearest gold loan branch with your gold and KYC documents for valuation or apply online from the comfort of your home. After verifying the gold price and determining eligibility, the loan amount is approved and disbursed often in just one branch visit.
Do not let your jewellery sit idle—tap into its value with a gold loan that suits your needs. Check your gold loan eligibility today!
Frequently asked questions
Loan value
It is better to take a gold loan than sell your gold. Selling means losing your gold forever, while a gold loan lets you borrow against it, meet your needs, and still get your gold back once you repay.
Generally, a pawn broker is only likely to offer you money in exchange for real gold. The money you are likely to get is on the basis of the value of the gold you are willing to pawn. This is true for gold loans too. RBI-registered lenders such as Bajaj Finance measure the purity of the gold you plan to pledge. You are only likely to get a gold loan if your gold jewellery or ornament is between 18-22 karat. You can also pledge gold coins up to 24 karat purity.
Gold pawning is a financial transaction where you submit your gold as a collateral to get access to a pre-determined amount of money. To pawn your existing gold, you must visit a pawn shop or a pawn broker. At this point, the pawn broker is likely to ascertain the value of your gold based on its weight and purity. Gold of higher purity and value is likely to get you a larger amount.
While gold pawning may seem like a simpler option, experts suggest you approach a reputable gold loan lender to avail of a loan against it. Rather than visiting your local pawn broker, consider an option such as the Bajaj Finance Gold Loan offers a safer, more reliable way to access money at an attractive interest rate.
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Disclaimer
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *