What is the process of gold pledging?

What is gold pledging and how does it work?

Gold pledging, also known as gold loan, is a financial practice where you utilise your gold possessions as collateral to secure a loan. When you pledge your gold, you temporarily transfer ownership of the gold to the lender in exchange for a loan amount. The lender evaluates the value of your gold based on its purity and weight and then offers you a loan amount equivalent to a percentage of its appraised value. This percentage can vary depending on the lender's policies, and the guidelines set by the RBI. 

A gold mortgage operates similarly to a gold loan, wherein you use your gold assets as security for borrowing money. However, in a gold mortgage loan, the lender places a lien or mortgage on the gold until the loan is repaid. This allows you to retain ownership of your gold while accessing funds based on its value. Ultimately, both gold pledging and gold mortgage serve as convenient and accessible options for obtaining quick funds by leveraging the worth of your gold possessions.

Gold loans are often sought after for their simplicity and accessibility. They offer quick access to funds without the need for extensive documentation or credit checks, making them an attractive option for individuals in need of immediate financial assistance. Moreover, the interest rates on gold loans are typically lower compared to other types of loans, as they are secured by collateral. This makes gold loans a cost-effective solution for borrowing money.

Documents required for gold pledging

To pledge your gold and apply for a gold loan, you only need to submit any one valid KYC document to complete your application. This simple requirement makes the process quick and accessible for individuals from all walks of life. Providing any one of these is enough to verify your identity and confirm your eligibility for the gold loan. Once your KYC is completed and your gold jewellery is assessed for purity and weight, your loan can be processed within a short time. The pledged gold acts as security for the loan, allowing you to access funds without worrying about your credit score or complex paperwork. This makes gold loans a trusted solution for meeting urgent or planned expenses, while keeping your gold jewellery safe and intact until repayment. Here’s a list of documents required to apply for gold loan:

• Aadhaar card
• Voter ID
• Passport
• Driving licence
• NREGA job card
• Letter from National Population Registration

Though the PAN card is not a mandatory document, for loans above Rs. 5 lakh you may need to submit your PAN card as well.

Safety and valuation in gold pledging

When you pledge your gold to get a loan, one of the biggest concerns is the safety of your precious jewellery. Bajaj Finance ensures that your gold jewellery is kept secure in highly protected vaults with surveillance and insurance coverage for complete peace of mind. This means your jewellery stays safe throughout the loan tenure until you repay the loan and take it back.

Accurate valuation is another important part of gold pledging. Your gold’s purity and weight are carefully assessed using advanced karat meters and technology to ensure a fair and transparent value. Only gold jewellery between 18-22 karats is generally accepted for pledging, so the evaluation ensures you get the best possible loan amount against your gold.

With a combination of strict security measures and precise valuation methods, pledging your gold for a loan becomes a reliable way to access funds without the stress of losing or undervaluing your valuable ornaments. It offers financial help while keeping your gold safe until you are ready to reclaim it.

Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.

Process of pledging gold in India

With Bajaj Finance, you can either apply online from the comfort of your home or visit the nearest Bajaj Finserv Gold Loan branch. To apply for a gold loan online, you just have to follow these simple steps:

1. Click on “Apply” to initiate online application.
2. Enter your 10-digit mobile number and click on “Get OTP.”
3. Submit the OTP to verify your identity.
4. Fill in your personal details and select the nearest gold loan branch.
5. Download loan eligibility letter.

Once done, you will receive a call from our representative and guide you on the next steps.

Why choose Bajaj Finance to avail a gold loan?

At Bajaj Finance, we make it easy and convenient for you to access funds by pledging your gold. Our application process is simple, requiring minimal documentation, so you can get quick approval without unnecessary delays. Whether you need funds urgently or are planning for future expenses, we are here to support you with a hassle-free gold loan experience.

Here’s why choosing us for your gold loan is the right decision:

• Quick and easy application – Apply online or visit your nearest branch with just basic documents to complete the process swiftly.
• Minimal paperwork – Enjoy a streamlined process with only essential documentation required for approval.
• Low gold loan interest rate – Benefit from competitive interest rates starting from just 9.50% to 24% p.a., helping you manage your repayments better.
• Multiple repayment options – Choose to repay monthly, quarterly, half-yearly, or even annually, depending on what suits you best. Any pending interest or principal due at the end of the tenure.
• No foreclosure or prepayment charges – You can repay early or make part-prepayments without any penalties, giving you more control over your finances.
• Transparent terms – We keep everything clear and straightforward, with no hidden charges or confusing conditions.

With Bajaj Finserv Gold Loan, you can borrow confidently, knowing that your jewellery is safe and your financial needs are met affordably and flexibly.

Apply in minutes. Money in account instantly with a Bajaj Finserv Gold Loan*