Gold has long been a symbol of tradition, security, and wealth in India. However, many people are unaware that their gold jewellery can also serve as a quick and convenient source of funds during emergencies. Borrowing a gold loan has become one of the fastest and easiest ways to secure cash when required urgently, whether for medical expenses, business capital, or personal needs. Pledging gold offers a way to unlock funds without parting with precious assets.
Bajaj Finserv Gold Loan
As the demand for gold loan continues to rise, it is important to understand the various options available and how they work. Let us explore how individuals can leverage their gold with Bajaj Finance.
What is a Gold Loan
A gold loan is a secured loan in which borrowers pledge gold jewellery as collateral to obtain money. The lender evaluates the purity and weight of the gold to determine its market value. Based on this assessment, a loan is provided, typically up to a certain percentage of the gold’s value, known as the Loan-to-Value (LTV) ratio. Gold loans offer lower interest rates, faster approval, and more flexible repayment options compared to personal loans, while allowing borrowers to retain ownership of their gold once the loan is repaid.
Lenders offer various gold loan options to meet different financial needs. For personal use, gold loans can be used for wedding expenses, education, home renovations, or medical emergencies. For business owners, a gold loan can help secure working capital, purchase equipment, or expand operations by using gold as collateral.
How is the loan amount calculated
The loan amount a borrower is eligible for depends on the gold rate in different city. Lenders assess the purity and weight of the gold, and the market rate on the day determines its value.
For instance, if the gold rate in Chennai is Rs. 5,850 per gram, and the gold jewellery weighs 50 grams, the eligible loan amount can be calculated as follows, assuming a Loan-to-Value (LTV) ratio of 75%:
Gold Weight: 50 grams
Gold Rate in Chennai (per gram): Rs. 5,850
LTV Ratio: 75%
Eligible Loan Amount: Rs. 2,19,375
If the gold rate increases, the eligible loan amount also rises.
Why choose Bajaj Finserv Gold Loan
Bajaj Finserv is known for its customer-centric approach and hassle-free process in providing gold loans. Some of the key benefits of choosing Bajaj Finance Gold Loan include:
High loan amount: Borrow from â¹ 5,000 up to â¹2 crore based on the value of gold jewellery pledged.
Competitive interest rates: Enjoy attractive gold loan interest rates that reduce the repayment burden.
Quick approval and disbursal: Receive funds almost instantly with minimal documentation.
Free insurance on gold: Bajaj Finance offers complimentary insurance on the pledged gold, ensuring it is safely stored in secure vaults until the loan is repaid.
Multiple repayment options: Choose a repayment plan that suits borrower’s financial needs, including monthly, bi-monthly, quarterly, half-yearly or annual interest payment options.
How to apply for a Bajaj Finserv Gold Loan
Applying for a Bajaj Finance Gold Loan is simple and straightforward. Follow these steps:
Visit the Bajaj Finserv Gold Loan website and click on “Apply” to start the online application.
Enter your 10-digit mobile number and click on “Get OTP.”
Submit the OTP to verify your identity.
Complete your personal details and select the nearest gold loan branch.
Download the in-principle loan eligibility letter.
Once the steps are completed, a Bajaj Finance representative will contact you to guide you through the next steps. In just a few simple steps, you will have completed the entire process.
Conclusion
A Bajaj Finserv Gold Loan is an intelligent way to unlock the value of your gold without having to sell it. Whether for personal or business needs, Bajaj Finserv Gold Loan offers a reliable, secure, and flexible solution to meet your financial requirements. Unlock the potential of your gold today with Bajaj Finance!
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About Bajaj Finance Limited
Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 80.41 million customers. Bajaj Finance has a credit rating of AAA/Stable for its Fixed Deposit program from CRISIL and ICRA, AAA/Stable for long-term borrowing from CRISIL, India Ratings, CARE and ICRA, and A1+ for short-term borrowing from CRISIL, India Ratings and ICRA. It has a long-term issuer credit rating of BBB-/Stable and a short-term rating of A-3 by S&P Global ratings.
To know more, visit www.bajajfinserv.in.
