Due to the high market value of gold, secured loans against gold jewellery are a popular form of funding in India. You can get an instant gold loan of up to Rs. 2 crore against your 22-karat gold jewellery from any leading bank or NBFC. Most lenders will offer up to 75% of your gold's value in accordance with RBI guidelines.
There are no restrictions on how you can use the loan amount, unlike unsecured loans like personal loans. You can use it to make a down payment on your new car, pay for a family wedding, medical expenses, your child’s education, or to expand your business.
Read on to know how you can get a quick loan by pledging your gold jewellery.
Quick loan disbursement
Gold loans are known for their quick disbursement process. Most lenders can provide you with the loan amount within just a few hours of application. This makes gold loan an ideal option for both your planned and unplanned expenses. Gold loans require minimal documentation compared to other types of loans, which further speeds up the approval process. Reputed lenders like Bajaj Finserv offer gold loans starting from Rs. 5,000 up to Rs. 2 crore.
Low rate of interest
Gold loans are ideally preferred over credit cards or personal loans. This is true especially if you own gold jewellery that is not being utilised and you need funds quickly. What makes gold loans more appealing is the low interest levied by lenders. Reputed lenders like Bajaj Finserv offer one of the lowest gold loan interest rates in the market, starting at just 0.83% per month.
No part-prepayment or foreclosure fee
Leading NBFCs and banks in India charge minimal or zero foreclosure fee for gold loans. So, you can repay a part of the loan in advance or pay the entire amount at no extra charge, which further reduces the overall loan servicing expenditure.
Easy eligibility parameters
Gold loans have the simplest eligibility parameters. To get a loan, you just need to be an Indian citizen between the ages of 21 to 70 and have your basic KYC documents ready for verification. In most cases, documents like your Aadhaar card, voter ID card, passport, or driver's licence is enough to get your loan approved.
Multiple repayment options
When it comes to gold loans, you have multiple repayment options at your disposal. You can repay the entire interest amount at the beginning of the loan tenure and pay the remaining principal later. You can also opt for monthly, bi-monthly, quarterly, half-yearly, or yearly interest payments and the principal amount at the end of the loan tenure.
No credit score dependency
Gold loans are secured loans that are backed by the collateral of gold. As a result, your credit score is not the primary deciding factor for loan approval. So, even if you have a low credit score, you will still be eligible for a gold loan. This is because the lender has the assurance of the collateral, which reduces the risk involved in lending.
If you need a gold loan to pay for planned or unplanned expenses, you can look at the online gold loan offered by Bajaj Finserv. You can get the best value against your gold jewellery with loan amounts from Rs. 5,000 to Rs. 2 crore and a number of useful benefits, such as free insurance of pledged gold, part-release facility, and multiple repayment options. For more details, visit the Bajaj Finserv website.
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