Gold loans have emerged as a popular financial solution in India, providing quick access to funds while utilizing your gold jewellery as collateral. Before you decide to go for a gold loan, it is crucial to understand the essential aspects, including the gold loan rate of interest, gold loan per gram, and other critical factors that can impact your borrowing experience.
Gold loan interest rates
One of the primary considerations when opting for a gold loan in India is the interest rate. The gold loan rate of interest varies among lenders and can significantly impact your loan's overall cost. Bajaj Finance offers competitive gold loan interest rates, against loans ranging from Rs. 5,000 up to Rs. 2 crore. You can benefit from interest rates ranging from 9.50% to 28% per annum. The interest rates against this loan depend on various factors such as the loan-to-value (LTV) ratio, purity of jewelry, and current market conditions.
Gold loan per gram
The amount of loan you can obtain through a gold loan in India is determined, in part, by the purity and weight of the gold jewelry you pledge as collateral. This is often known as gold loan per gram. The loan-to-value ratio, referred to as LTV, is a crucial factor in gold loans. It determines the maximum amount that you can borrow against the value of your gold assets. Lenders use specialised equipment to assess the purity and weight of your jewellery, which influences the loan amount they are willing to offer. With Bajaj Finance, you can avail up to 75% of your jewellery’s value, as per the guidelines set by the RBI. For further ease of calculating your loan details, you can also use the online gold loan calculator and plan your financial journey better.
Loan repayment terms
Before proceeding with a gold loan in India, it is crucial to understand the loan repayment terms. With Bajaj Finserv Gold Loan, you can choose to repay your interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis. You can choose a repayment option that aligns with your financial capabilities. Though it is important to note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
No hidden charges
It is crucial to be aware of any hidden or additional charges associated with your gold loan. Common charges may include processing fees, late payment fees, and valuation charges. Understanding the fine print and clarifying any potential hidden costs can help you avoid unpleasant surprises and make your borrowing experience more transparent. With Bajaj Finance, you do not have to worry about any additional charges for foreclosure or prepayment of your gold loan.
Security of your jewelry
One of the key benefits of gold loans is that you use your gold assets as collateral. However, it is vital to be confident that your assets are in safe hands during the loan tenure. Reputable lenders provide secure and insured storage facilities for your jewellery. Ensure that you receive a clear understanding of how your gold will be safeguarded throughout the loan period.
Before you decide to go for a gold loan in India, it is essential to understand critical aspects such as the gold loan rate of interest, gold loan per gram, repayment terms, and loan security. By evaluating these factors and choosing a reputable lender, you can make an informed decision that meets your financial needs while safeguarding your valuable gold assets.
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