Gold Loan: A smart and secure way to get quick access to funds

Here are a few reasons why loan against gold jewelery can be a great option.

Instant disbursal

One of the primary reasons why gold loans are favored by many is the quick disbursement of funds. When faced with unexpected financial emergencies or urgent requirements, time is of the essence. Gold loans offer a swift solution by providing immediate access to funds. 

The process is simple: you pledge your gold assets as collateral, allowing lenders to extend funds based on the market value of your gold. This ensures quick approval and disbursement of funds, enabling you to address your financial needs quickly and efficiently.

Low gold loan interest rates

Another significant advantage of gold loans is the competitive interest rates they offer. Compared to unsecured loans like personal loans or credit cards, gold loan interest rates tend to be lower. The reason behind this is the secured nature of gold loans. 

Your gold jewellery act as collateral, reducing the risk for lenders. As a result, you can benefit from a cost-effective borrowing option, saving you from high interest charges and making gold loans an attractive choice for obtaining quick funds. Bajaj Finance, for instance, offers gold loans at an interest rate starting from just 9.50% per annum.

High value per gram of gold

The loan amount that you can receive through a gold loan is calculated based on the value of gold loan per gram. Each lender has its method of determining the loan-to-value ratio, which specifies the percentage of your gold’s value that the lender is willing to provide as a loan. Bajaj Finance offers a maximum loan of up to 75% of the market value of your pledged gold. 

Multiple repayment options

With a gold loan, you have the flexibility to choose repayment options that suit your financial circumstances. Lenders offer various repayment tenures, allowing you to select a duration that aligns with your repayment capacity. With a Bajaj Finance Gold Loan, you can choose to pay the full interest amount at the beginning of the loan term and clear the remaining principal at the end, or make interest payments on a monthly, bimonthly, quarterly, half-yearly, or yearly basis.

No credit score dependency 

One of the biggest advantages of instant gold loans is that they do not require a credit check. This means that even if you have no credit history or a low credit score, you can still avail these loans based on the value of your gold jewellery. 

Easy application process

You can explore the online gold loan offered by Bajaj Finance to fulfil your planned or unplanned requirements. You can easily apply if you are an Indian citizen aged between 21 and 70, with just your KYC documents like your voter ID card, Aadhaar Card, passport, or driver’s license.

By leveraging the value of your gold assets, you can address financial emergencies or meet urgent requirements without having to sell or permanently part with your cherished possessions. So, the next time you find yourself in need of immediate funds, consider the advantages of a gold loan and unlock the value of your gold for a smart and secure financial solution. Simply visit a nearby Bajaj Finance branch or apply for a gold loan online through the Bajaj Finance .