In times of financial need, a loan against gold can provide a valuable lifeline. It allows you to leverage the value of your gold jewellery to secure a loan. Whether you are looking to meet a personal expense, start a business, or manage an emergency, understanding how to apply for a loan against gold can be the key to unlocking the funds you require. Read to know what a loan against gold is, its benefits, and how to apply for one.
Understanding loan against gold
A loan against gold, also known as a gold loan or gold-backed loan, is a type of secured loan where you pledge your 18 karat gold jewellery as collateral to obtain funds from a financial institution or lender. The loan amount you receive can go up to a maximum of 75% of the gold's market value, known as the loan-to-value (LTV) ratio.
The primary advantage of a loan against gold is that it allows you to access quick funds without selling your precious assets. Gold is widely accepted as collateral due to its inherent value and global market liquidity. You can get a gold loan at lower interest rates compared to unsecured loans because the gold jewellery acts as security.
How to apply for a loan against gold
You can initiate the process by assessing the value of the jewellery you intend to offer as collateral. You can use the free Bajaj Finance online gold loan calculator. By entering either the weight of your gold in grams or the desired loan amount, the calculator will provide an estimate of your loan liability.
The advantage of gold loans is that they eliminate the need for extensive and time-consuming paperwork, as your gold jewellery acts as collateral. Any Indian citizen aged between 21 to 70 years can apply for a gold loan. You will only be required to present one of your KYC documents, such as an Aadhaar Card, voter ID card, driving licence, or passport, to avail a Bajaj Finance Gold Loan.
Leverage the underlying value of your unused gold jewellery to meet your immediate funding requirements. Follow a few simple steps to ensure a quick disbursement of your gold loan.
- Step 1: Visit the Gold Loan section of the website
- Step 2: Click on the online application form
- Step 3: Enter your 10-digit mobile number and click on ‘GET OTP’
- Step 4: Enter OTP to verify your details
- Step 5: Select your state and city to locate your nearest branch
- Step 6: Enter your full name and date of birth as per your PAN
- Step 7: Set up your appointment at the nearest branch in your city
You can enjoy the convenience of selecting a time that suits you best and visiting our branch with your 18 gold jewellery. Our team will evaluate the purity of your gold jewellery and initiate the loan application process. With a vast network of over 800 branches nationwide, we are committed to processing your loan application swiftly and efficiently, ensuring a seamless and trouble-free experience for you.
