What is the Procedure for Gold Loan Repayment

What is the Procedure for Gold Loan Repayment

Explore gold loan repayment options to manage your finances better. Choose a convenient gold loan repayment option to plan your finances easily.
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What is the procedure for gold loan repayment? 

With Bajaj Finance, gold loan repayment is simple and easy to manage. When you take a loan against your gold jewellery, ornaments and coins, you repay the borrowed amount along with interest within the chosen time. The process is designed to give you convenience to repay the loan as per your financial standing: 

  • Flexible options: You can pay interest monthly, bi-monthly, quarterly, half-yearly, or annually
  • Principal payment: The full loan amount and any pending interest are usually paid at the end
  • Easy to manage: Minimal paperwork and clear terms make repayment simple
  • Flexible use: You can use the loan for personal or emergency needs
  • Safe return: Once repaid, your gold is returned safely

Gold loans offer a simple and reliable way to manage short-term financial needs.
 

How does gold loan repayment work? 

Gold loan repayment means paying back the loan amount along with interest. Since the loan is taken against gold jewellery, ornaments and coins, the process is quick and straightforward.

  • Multiple options: Pay interest monthly, bi-monthly, quarterly, half-yearly, or annually
  • Final payment: Pay the principal and any remaining interest at the end of the tenure
  • Flexible terms: Choose a plan that suits your income
  • Secure process: Your gold is returned after full repayment

This makes gold loans an easy and flexible borrowing option. Gold loan repayment terms vary depending on the lender, but they often offer multiple repayment options to suit individual preferences.

Once the repayment is completed, the lender releases your pledged gold, ensuring you regain possession of your valuables. The flexibility in repayment options, combined with straightforward terms, makes gold loans a preferred choice for many borrowers.


Pro tip: Do not let your gold sit idle—tap into its value with a gold loan that suits your needs. Apply for a gold loan today! 

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Gold loan fees and charges

When you take a gold loan, the interest rate plays a big role in deciding how much you will end up repaying. It is something you should always keep in mind before borrowing. The rate can change depending on the lender, your loan amount, and the repayment tenure you choose. With Bajaj Finance, you get competitive gold loan interest rate and completely transparent charges, so you know exactly what you are paying for. The rates start from 9.50% to 24% p.a., making it easier to keep your costs under control. It is always wise to check all the charges in detail before applying, so you can plan your repayments with confidence.

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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

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Gold Loan eligibility criteria

Applying for a Bajaj Finserv Gold Loan is simple and transparent. You just have to meet the easy to meet gold loan eligibility criteria. You can avail a loan against your gold jewellery, ornaments and coins with minimal documentation and a smooth process. Once your details and gold are verified, the loan process moves ahead quickly without unnecessary delays.

  • Who can apply: Salaried individuals, self-employed individuals, housewives, and pensioners
  • Basic eligibility: Indian nationality, age between 21 to 80 years
  • Gold requirement: 18-22 karat gold jewellery, ornaments and coins (gold coins up to 24 karat are accepted)
  • Simple documentation: Basic KYC documents are required for verification
  • Transparent valuation: Loan amount is based on eligible LTV, actual purity, and the lower of the previous day’s closing price or 30-day average closing price (IBJA or SEBI-regulated exchange)
  • Defined limits: Loan eligibility also depends on collateral type and overall exposure limits

Once approved, funds are disbursed quickly, making it a convenient option for immediate financial needs.

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Gold loan application process

Availing a Bajaj Finserv Gold Loan is a seamless experience. You can visit the nearest branch with your gold jewellery and basic KYC documents or start your application online for added ease. The gold is evaluated on the spot, and once approved, the loan amount is promptly transferred to your account. This efficient process ensures you get access to funds on time, whether for immediate requirements or planned expenses. With minimal paperwork, straightforward terms, and complete transparency, obtaining a gold loan from Bajaj Finance is both simple and dependable. Apply for a gold loan today! 

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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. *