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A simple way to apply for a Gold Loan


Gold reserve in India 

India is a land of gold and earlier it was called as "land of a golden bird". Gold reserves are very high in India. In some Indian temples, the idols of gods are made up of gold. The famous golden temple located in Amritsar, Punjab is fully made of gold and its shiny luster is worth seeing to the eyes. The ambiance of the place is quite different from others. Every India has gold in some proportions. In Indian weddings, the bride is adorned with 16 different gold ornaments and the groom is presented with gold jewels as a gift. Tonnes of gold is found in India which accounts for 7.5% of the world. Gold is also the most inherited heirloom in India. Money is invested in buying gold each year which is a million tonnes of gold that keeps itself in demand.

Gold loan process

The gold loan process is available online as well as offline. During the global shutdown of 2020, people now have diverted towards online processes as it is easy and can be done from anywhere.

  • You can go to the Bajaj finance webpage or mobile application for filling out the application form whereas you have to visit the bank offline.

  • A bank person/ representative will call you shortly to fix an appointment for document verification and a gold purity test.

  • If you are eligible, a loan will be sanctioned and a sanction letter will be given to you.

A sanction letter contains the details of borrower and lender, loan amount sanctioned, the rate per gram gold, processing fee, interest charges, prepayment options, tenure period, repayment options, foreclosure charges, etc. 

  • You have to deposit the gold as collateral. Once the gold is safely kept in the bank lockers, the amount is credited to your bank account.

  • Bajaj finance is the best option for a gold loan because you don't need to have a Bajaj finance account while applying for a gold loan.

Gold purity test 

The gold should be above 18 carats to be kept as a mortgage. The gold's purity test is conducted to examine its weight and impurities present in the gold. In this test, the composition of gold is known. As per this test, the loan amount is sanctioned according to the criteria. There are different criteria and rates for per gram of gold belonging to 18 carats, 20 carats, 22 carats, and 24 carats respectively. 

Repayment of loan

The Bajaj Finance Gold Loan is the most reliable in the market. The tenure period is given along with repayment options which you can choose accordingly. 

The Gold Loan Interest Rate is 7% per annum which is less as compared to others. The tenure period is up to 36 months. Three repayment options are given to you which are bullet repayment, overdraft payment, and EMI (equated monthly installment).

  • Bullet repayment
    You will be charged on the month to month basis but the principal will be overdue at the end of the tenure period.

  • Overdraft repayment
    The total amount is credited to your bank account but interest is only charged on the amount disbursed by you.

  • EMI 
    If you have a Bajaj finance bank account- 
  1. Standing instruction - In this your EMI will get deducted on a month-to-month basis on the amount you indicated. If you don't have a Bajaj finance bank account, you are given two EMI options towards repayment of the loan.

  2. Electronic clearing - When you don't have an account of Bajaj Finance but you want to pay on a month-to-month basis.

  3. Post-dated checks- You can submit your post-dated checks to the Bajaj final center there when you don't have a bajaj finance bank account.



At Bajaj finance, the gold you deposited is safely kept in bank lockers and fully taken care of. The bank lockers have high tensile strength and aren't affected by any external factors. The lockers are safely guarded by security guards and security cameras are placed for surveillance. Nobody can enter these bank lockers without the express permission of a bank person. Thus the safety of your valuables is fully retained.


Thus, to conclude it is a reliable loan and the gold loan interest is very minimal in comparison to others.