Gold is a critical asset that you can utilise for investments and securing finances through loans. You have the opportunity to take advantage of various attractive features that make gold loans a convenient option for you. By utilising your idle gold jewellery, you can raise funds during emergencies. Depending on the purity and weight of your gold jewellery, you can seek funding of up to Rs. 2 crore as a gold loan. These loans are easily available with quick processing time, giving you the flexibility to choose a suitable tenure of repayment according to your convenience.
Check out the following details related to gold loan minimum tenure selection along with other necessary information.
Loan tenure option for gold loan
When it comes to gold loan tenures, they can vary from one financial institution to another, with the minimum tenure for gold loan starting at 6 months with many lenders. However, with Bajaj Finance, you have the option to choose gold loan tenures of up to 12 months, providing you with sufficient flexibility of repayment based on your affordability.
Additionally, with Bajaj Finance, you also have the option of part-prepayment or foreclosure of the advance before the minimum tenure ends. This gives you even more control over your repayment options, allowing you to choose what suits your financial standing the best.
What is the gold loan minimum amount?
The minimum gold loan amount available for you as a borrower is not fixed and can vary with certain factors. They include the following.
- Weight of gold to be pledged
- Purity of gold
- Gold loan per gram rate
Some lenders may, however, set the gold loan minimum amount at Rs. 5,000. Based on the amount, weight, purity, and value of gold extended for pledging, the maximum gold loan amount Bajaj Finance provides can go up to Rs. 2 crore.
The loan is available against simple eligibility requirements and is readily accessible for your urgent funding needs. Various other user-friendly benefits like free insurance of gold, part-release facility, high loan per gram, etc., make gold loan an attractive financing option.
Documents required for a gold loan
The documents needed are meant to fulfil KYC norms only and include the following - Aadhaar Card, PAN card, voter ID card, driving licence, or passport.
You may need to provide any additional document if asked for by the lender. Do not forget to check gold loan interest rates and compare lenders before determining the loan offer to apply for.
Frequently asked questions
The typical repayment period for a gold loan is up to 12 months. This means that you have a year to repay the loan amount along with the interest, providing a reasonable timeframe for loan repayment.
The loan-to-value (LTV) ratio affects the gold loan tenure. A lower LTV often results in a longer gold loan tenure, giving borrowers more time to repay the loan comfortably. In contrast, a higher LTV might lead to a shorter loan tenure, requiring quicker repayment. With Bajaj Finance you can get up to 75% of your gold’s value, as per the RBI guidelines, for a tenure of 12 months.
When considering the tenure for your gold loan, think about how long you want to take to repay it. Consider your financial goals and how much you can comfortably pay each month. Shorter tenures mean higher monthly payments, while longer tenures mean lower monthly payments. Choose the tenure that suits your needs.