Why Should I Take a Gold Loan

What are the benefits of taking a gold loan?

For most Indians, gold ornaments are more than just jewellery – they are a form of security kept aside for those times when sudden financial needs arise. No matter how carefully you plan your money, emergencies can catch you off guard. That is when a gold loan comes in handy. It is one of the quickest and simplest ways to raise funds without having to sell your precious gold. By pledging your ornaments, you can access instant cash, often up to 85% of the gold’s value, depending on the lender. This makes it a reliable option for anyone looking for a hassle-free solution during unexpected situations.

Top features and benefits of gold loan

There are several reasons that make a loan against gold jewellery a smart financing solution when you need funds. Bajaj Finance offers gold loans at attractive rates of interest with complete transparency – there are no hidden charges. Read on to know some of the top features and benefits of taking a gold loan.

Lower interest rate

Being a secured loan, gold loans are generally subject to lower rates of interest as compared to other financing options such as personal loans, home loans, or other secured loans. You can get a gold loan ranging from Rs. 5,000 to Rs. 2 crore to manage your planned or urgent needs. This loan comes with an attractive gold loan interest rate starting from 9.50% to 24% per annum. 
 

Faster processing

Gold loans are easy to avail with simple eligibility requirements and minimal paperwork. Since the loan is secured against gold jewellery, a high CIBIL score and extensive documentation are not mandatory, though a good score may help in getting better interest rates. With an online application, the process involves quick gold evaluation, identity verification, and swift loan disbursal.
 

Multiple repayment options

Gold loan offers multiple repayment options. You can opt to pay the interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.

Part-release facility

With the part release facility on offer, you can repay a part of your loan and take part of your gold jewellery back before the end of your loan tenure.
 

No foreclosure charges

You can choose to pre-pay a part of your loan or completely foreclose the loan before the loan term without any prepayment fees or foreclosure charges.
 

Free gold loan calculator

With a free to use online gold loan calculator, you can determine the loan amount depending on the weight and purity of your gold jewellery. Before applying for a loan, you can calculate the total interest that will be charged along with your repayment plan.
 

Free insurance of gold

The pledged gold jewellery is kept in highly secure vaults under 24x7 surveillance. The gold is covered against theft and misplacement till it is under our custody and is returned to you when you repay the loan amount in full.

Gold loan renewal

You can renew your gold loan at the end of the loan tenure, provided the loan-to-value (LTV) ratio meets regulatory guidelines. Before renewal, we will carry out a fresh credit appraisal. Please note, renewal after the actual loan maturity date is not allowed.

Gold loan top-up

You can request a top-up on your existing gold loan any time before it reaches maturity, provided the loan-to-value (LTV) ratio stays within regulatory limits and we complete a fresh credit assessment. However, if your loan has already crossed its maturity date but remains active because of pending dues, a top-up facility will not be available.

Read Also: Gold Loan vs. Credit Card: Which one should you choose?