The initiative comes as gold loans gain wider acceptance among borrowers seeking quick, secured, and flexible financing solutions without the extensive eligibility barriers typically associated with unsecured credit products.
Positioned as an inclusive secured lending product, the gold loan offering is designed to serve a broad borrower base, including salaried individuals, self-employed professionals, and pensioners. Unlike personal or business loans, eligibility is not dependent on income verification, credit score strength, or extensive financial documentation. Instead, the loan is secured entirely against pledged gold assets.
Under its current structure, Bajaj Finance provides loan amounts ranging from ₹5,000 to ₹2 crore, with disbursement occurring on the same day in most cases, subject to verification and valuation processes.
Eligibility criteria for the gold loan remain clearly defined. Applicants must be Indian citizens between the ages of 21 and 80. The pledged gold jewellery or ornaments must fall within the purity range of 18 to 22 karats. Gold coins of up to 24 karats are also accepted. However, jewellery containing heavy stonework or enamel is evaluated solely on the basis of its net gold content, excluding non-gold components from valuation.
The documentation requirement has been deliberately simplified. Borrowers are required to submit a single valid Know Your Customer document, which may include an Aadhaar card, Voter Identification Card, passport, driving licence, National Rural Employment Guarantee Act job card, or a letter issued by the National Population Register system.
Interest rates on gold loans at Bajaj Finance begin at 9.50 percent per annum. The final applicable rate is determined by multiple factors, including loan amount, tenure selection, and the purity of pledged gold. The valuation methodology is based on the lower of the previous day’s closing price or the 30-day average closing price, as published by the India Bullion and Jewellers Association or a Securities and Exchange Board of India–regulated commodity exchange, ensuring consistency and stability in valuation.
Repayment flexibility is a key feature of the product structure. Borrowers may choose interest repayment schedules on a monthly, bi-monthly, quarterly, half-yearly, or annual basis, while the principal amount is payable at the end of the loan tenure. Early repayment is permitted without any additional foreclosure charges, allowing borrowers the option to close their loan obligations ahead of schedule.
The application process is available both online and through physical branch channels. Applicants begin by submitting a mobile number for one-time password verification, followed by personal detail submission, branch selection, and issuance of a preliminary eligibility letter. Final gold valuation and physical assessment are conducted at the branch, after which loan disbursement is typically completed on the same day.
Bajaj Finance Limited, a subsidiary of Bajaj Finserv Limited, operates as a deposit-taking non-banking financial company registered with the Reserve Bank of India and classified as a non-banking financial company–investment and credit entity. The company maintains a diversified lending portfolio across retail, small and medium enterprises, and commercial segments, with a significant footprint across urban and rural markets in India.
The institution serves a customer base of 69.14 million and offers multiple financial services, including deposits and credit products. It holds the highest domestic credit ratings of AAA with stable outlook for long-term borrowings and A1+ for short-term borrowings, along with CRISIL AAA Stable and ICRA AAA Stable ratings for its fixed deposit program. It also carries international ratings of BB+ with positive outlook for long-term issuer credit and B for short-term rating from S&P Global Ratings.
The structured disclosure of eligibility, pricing methodology, and repayment flexibility reflects the company’s continued focus on expanding access to secured credit while maintaining standardized risk assessment and valuation practices in India’s evolving retail lending landscape.
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