The Impact of Credit Scores on Gold Loan Approvals

With Bajaj Finserv Gold Loan, get quick access to funds up to Rs. 2 crore with low interest rates, no CIBIL Score dependency, multiple repayment options, and more.

In the ever evolving world of personal finance, people are always looking for practical and accessible ways to address their sudden and unexpected financial needs. Among the various financial options out there, gold loans have proven to be a flexible and reliable choice.

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With Bajaj Finance, you can avail of a gold loan starting from Rs. 5,000 up to Rs. 2 crore with no end-use restrictions. Bajaj Finance offers gold loan interest rate starting at just 9.50% p.a.. To apply for a gold loan, you just have to be an Indian citizen aged between 21 and 70years with 18-22 karat gold jewellery at your disposal to pledge as collateral against the loan.

The role of credit score in gold loan approvals

In most cases, a good credit score is mandatory when applying for loans or credit cards. The credit score determines your capacity to manage your finances, assesses your creditworthiness, and helps lenders decide whether you are a high-risk borrower or not. A low credit score can result in your loan application being turned down, and even if it is approved, it may involve higher interest rates.

However, when it comes to Bajaj Finserv Gold Loan, the eligibility requirements are much simpler. Gold loans are secured loans, meaning the loan is secured by pledging physical gold jewellery as collateral. This makes the process of obtaining a loan much easier as the collateral’s value allows the lender to minimise the risk involved. In this case, your CIBIL Score or credit history does not play a significant role in determining your eligibility for a loan.

With Bajaj Finance you can get a loan amount based on the quantity and quality of gold jewellery pledged. Therefore, the higher the gold loan rate per gram, the higher the amount you can borrow. Even if you have a low credit score, you can still obtain a gold loan as long as the value of the gold pledged meets the set criteria. As per the RBI guidelines, you can avail up to 75% of your gold’s value as loan.

How can gold loans help you achieve a higher CIBIL Score

Here are a few ways to boost your credit score:

  • Timely repayments: Make sure to repay your gold loan on time, as any delays or defaults can negatively impact your CIBIL Score. Set reminders or automate payments to ensure timely repayments.
  • Responsible borrowing: Borrow only the amount you truly need and can comfortably repay. Taking on excessive debt can strain your finances and increase the risk of repayment difficulties.
  • Regular credit monitoring: Monitor your credit report regularly to stay aware of any errors that could affect your CIBIL Score. Promptly address any issues with the credit bureaus.
  • Clear existing debts: Prioritise clearing existing debts before taking on new loans. This demonstrates responsible financial behaviour and improves your creditworthiness.
  • Communication with lender: If you anticipate any difficulties in repaying the loan, communicate with your lender. They may be able to offer alternative repayment options or solutions to avoid defaults.

With a gold loan, you can address financial emergencies with confidence and ease. To apply for a gold loan online, visit

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.

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