What is the minimum CIBIL Score for Gold Loan

Read to know the benefits of opting for a loan against gold jewellery, and the minimum CIBIL Score you need for a gold loan.
What is the minimum CIBIL Score for Gold Loan
2 min read
10 July 2023

Are you in need of quick and hassle-free financing but worried about your credit score? Look no further. Unlike traditional loans, gold loans are secured against your gold jewellery, making them accessible to people with varying credit scores. The best part? Gold loans do not require a high CIBIL Score or a long credit history.

Read to know how you can secure the funds you need without the worry of your credit score holding you back.

What is a CIBIL Score?

Your CIBIL Score reflects your creditworthiness based on your past credit history and repayment behaviour. It ranges from 300 to 900, with a higher score indicating a better credit profile. Factors such as timely loan and credit card bill payments, responsible credit utilisation, diverse credit types, and a longer credit history contribute to a positive CIBIL Score. Lenders use this score to evaluate your creditworthiness when you apply for a loan. A good CIBIL Score increases your chances of loan approval, while a low score may make it more challenging to obtain credit.

Gold loans: A unique financing option

Gold loans are a popular choice for financing if you are looking for a quick and hassle-free access to funds. Since these loans are secured against your gold jewellery, it reduces the significance of your credit score. Hence, these loans come with no credit dependency. If you have your 18-22 karat gold jewellery to pledge as collateral, you have a high chance of loan approval, regardless of your credit history.

To avail of a gold loan, you just have to be an Indian citizen aged between 21 and 70 years. All you need is any one of the following documents as proof of identity and residence:

  • Aadhaar Card
  • Voter ID card
  • Passport
  • Driving licence
  • NREGA Job card
  • Letter issued by National Population Register

 Read also: How to increase CIBIL Score with a Gold Loan

Other benefits of Gold Loans

1.Competitive interest rates

Gold loans often come with competitive interest rates compared to unsecured loans. The gold loan interest rate is determined by factors such as the loan amount, the purity of your gold, and the lender's policies. Bajaj Finserv offers gold loan with interest rates starting at just 9.5% per annum. Before applying for a loan, you can also use the Bajaj Finserv Gold Loan Calculator to get an estimate of the amount you are eligible for depending on the weight of your gold jewellery.

2.High loan amount

The loan amount that you can secure through a gold loan depends on the value and purity of your gold jewellery. Bajaj Finserv offers a percentage of the gold's appraised value as the loan amount, going up to 75% of the gold's estimated worth. This allows you to access a substantial loan amount based on the value of your gold jewellery.

3.Multiple repayment options

Gold loans offer you multiple repayment options to suit your financial capabilities. You can choose from various repayment plans such as monthly instalments, bullet repayments, or even a combination of both. This flexibility ensures that you can repay the loan comfortably and without straining your finances.

4.Free insurance of gold

An added advantage of Bajaj Finserv Gold Loan is the free insurance of your pledged gold jewellery. The jewellery is kept in secured vaults under 24*7 surveillance.

Gold loans provide a viable financing option for seeking quick access to funds, regardless of your credit score. So, do not let your credit score hold you back. Leverage the power of your idle gold jewellery to secure the funds you require.

To apply for a gold loan, visit www.bajajfinserv.in.


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Frequently asked questions

Will gold loan affect CIBIL score?

No, a gold loan doesn't affect your CIBIL score. Since the loan is secured against gold jewellery, it does not affect your credit score. However, it's important to repay the loan on time to build and maintain a good credit history.

How much time it takes to improve CIBIL score with a gold loan?

No, a gold loan doesn't affect your CIBIL score. Since the loan is secured against gold jewellery, it does not affect your credit score. However, it's important to repay the loan on time to build and maintain a good credit history.