Gold loans are secured advances with short repayment tenors that allow borrowers to avail funding readily. It helps address urgent financing needs with ease. Even with the best lenders, the maximum tenor for a gold loan does not reach 5 years. It means that if you are availing of a gold loan, you must be ready to repay the advance within a shorter duration.
Other prominent features of gold loan include high-value financing, high loan to value ratio, multiple repayment options, and interest rate affordability. Some lenders provide gold loans with fixed tenors, eliminating a borrower’s need to worry about the minimum and maximum tenor for a gold loan.
Make sure to check with your financial institution about the availability of tenor flexibility before applying.
Maximum Tenure for Gold Loan
The gold loan maximum tenor varies from one lending institution to another. Some lenders provide tenors extending up to 2 years or 24 months for gold loan repayment, while the minimum limit is set at not less than 6 months. With Bajaj Finserv, the gold loan maximum limit and minimum limit of repayment tenor do not apply as the repayment period is fixed at 12 months.
At 12 months, the fixed tenor provides the right balance of repayment duration without hurrying the borrower into repayment and allowing ample time to manage repayments affordably.
When applying for a gold loan, use dedicated financial tools like the gold loan EMI calculator and the gold loan per gram calculator to assess your loan options better. Plan your repayments so that you can make timely EMI payments. A well-managed gold loan can be a great way to boost your credit score whether you are new to the borrowing sector or not.
Can You Extend the Gold Loan Tenure?
Extension of gold loan tenor is not possible with Bajaj Finserv as the repayment period is fixed. To manage your loan repayments affordably, make sure to select the loan amount after due consideration of EMIs payable, interest accrued and the total loan liability.
The gold loan maximum amount with Bajaj Finserv can go up to Rs. 2 crore, with one of the highest per gram rates in the industry. The loan amount available for an individual can vary with the weight of gold, its purity, and the per gram rate available on the day of the gold loan application.
Eligibility for Gold Loan
Individuals need to fulfil simple criteria as to eligibility for gold loans to avail of the advance. Following are some standard requirements to fulfil.
- Applicants must age between 21 and 70 years
- They must be a salaried or self-employed individual with a regular income source
- Gold must be made in the 18, 22, or 24-Carat purity standard
Bajaj Finserv offers gold loans against gold jewellery and ornaments only. Gold bars and coins do not qualify as assets to pledge to avail a gold loan. Make sure to meet the minimum eligibility requirements and arrange all necessary documents before applying for streamlined processing of your loan application.