Jewel Loan

A jewel loan or gold loan is a secured credit option that lets you pledge gold ornaments for immediate funds by pledging your ornaments as collateral. On Bajaj Markets, you can secure loans against gold jewellery up to 80 Lakhs with interest rates starting at 14% p.a..

The jewel loan process is designed to be transparent and efficient, providing you with immediate capital through a streamlined workflow. 

• Applying Online

Start by filling out a digital form to book a branch appointment or select a doorstep service for home evaluation (offered by some NBFCs & banks).

• Gold Appraisal

A professional assessment is conducted to determine the exact purity, weight, and market value of your ornaments.  

• Review Loan Offer

The lender proposes a specific gold loan amount based on the gold’s value and the current 75% LTV ratio.

• Documentation

Submit essential KYC documents, such as identity and address proof, to complete mandatory verification.

• Approval and Disbursement

Once verified, you receive instant approval, and funds are disbursed directly to your bank account.

• Repayment

Fulfill your obligations over the chosen tenure, settling the principal and interest by the maturity date.

• Gold Retrieval

Upon full repayment of the loan, you can safely retrieve your pledged jewellery from the lender.

Several technical and market-driven factors influence the final loan amount of gold jewel loans and terms offered by lenders.  

• Gold Purity: Measured in karats (K), higher purity like 22K or 24K qualifies for higher valuation, excluding non-gold elements.  
• Weight of the Gold: The total net weight of the gold, after deducting stones or alloys, directly impacts the loan size.
• Market Price of Gold: Lenders use current market trends or 30-day averages to determine the per-gram rate of your gold.  
• Loan-to-Value (LTV) Ratio: LTV is the percentage of your gold’s assessed value that a lender can offer as a loan. As per RBI guidelines, this is capped at a maximum of 75% of your gold’s assessed market value.
• Condition and Age: Well-maintained, newer jewellery may fetch better value compared to damaged or very old ornaments.
• Documentation and Verification: Clear proof of identity and ownership ensures a smooth valuation and can positively impact the offer.

Loans against gold jewellery offer multiple repayment options, allowing you to choose a structure that aligns with your income pattern and cash availability. Understanding each option clearly helps you plan repayment in a systematic manner while ensuring timely closure of the loan. The repayment options are as follows:

• Equated Monthly Instalments (EMIs): Fixed monthly payments covering both principal and interest, with the same amount payable throughout the tenure.
• Interest-Only Payments: Pay only the interest during the loan period and repay the full principal amount at maturity.
• Bullet Repayment: Repay the entire principal and interest together in one lump sum at the end of the tenure, with no monthly instalments.
• Partial Payments: Make part-payments anytime during the tenure to reduce the outstanding principal and lower the overall interest payable.
• Prepayment or Foreclosure: The loan can be closed before the scheduled maturity date by repaying the entire outstanding balance. Some lenders may apply foreclosure terms, so reviewing the agreement is important.

When a gold jewel loan is sanctioned, the pledged jewellery is recorded in the system with complete details and stored in tamper-proof packets inside secure vaults under continuous CCTV surveillance. You are expected to repay the dues as per the agreed schedule. If repayments are not made within the specified period, the account is treated as overdue and may eventually proceed toward auction as per lender policy. The auction process generally consists of:

• Secure Storage: Jewellery details are recorded in the system and stored safely in sealed packets within monitored vaults.
• Default Due to Non-Payment: If interest or dues are not paid on time, the loan account becomes overdue and late charges may apply.
• Three Ordinary Notices: If dues remain unpaid for an extended period, three ordinary reminder notices are sent to the borrower.
• Fourth Registered Notice: A fourth notice is sent via registered post, formally informing the borrower about continued non-payment.
• Final Auction Notice: If no action is taken even after four notices, a final auction notice is issued, after which the lender may proceed to auction the pledged gold to recover outstanding dues.
• Notice Charges: Charges related to reminder notices and the final auction communication are generally borne by the borrower.

Choosing a jewel loan through Bajaj Markets offers you the following benefits to help you manage your financial needs efficiently:

• Maximised Loan Value: Access substantial funds by borrowing up to 75% of your gold's current market value.
• Customised Payment Timelines: Select a schedule that fits your cash flow with monthly, bi-monthly, quarterly, half-yearly, or annual payment options.
• Early Asset Retrieval: Use the part-release facility to repay a portion of your loan and reclaim specific gold ornaments before the full tenure ends.
• Penalty-Free Early Settlement: Foreclose or prepay your loan at any time without incurring additional charges.
• Accessible Credit for All: Secure approval regardless of your credit history, as the loan is fully backed by your gold collateral rather than a CIBIL score.