Bajaj Finance's gold loan book has doubled, according to reporting by NDTV Profit. The same report says the lender has closed one of its schemes.
For you, the main point is simple. If you hold a Bajaj Finance gold loan, check your loan papers. Confirm your rate and terms. Ask the lender if the closed scheme touches your loan. Nothing in the headline says existing loans will change.
Key takeaways
- A bigger gold loan book means the lender has lent far more money against gold.
- One scheme has been closed, but the headline doesn't name it.
- Your signed loan terms usually don't change just because an offer ends.
- Compare rates and fees before you borrow or move your loan.
- Pledge only as much gold as you need.
What a doubled gold loan book means
A loan book is the total money a lender has given out and not yet got back. When a gold loan book doubles, the lender is holding about twice as many loans as before. Gold loans are popular because they're quick. You pledge gold and get cash, often the same day.
The headline doesn't say over what period the book doubled. It also doesn't name the closed scheme. So we won't guess at those details.
Why might a lender close a scheme? Lenders often end offers when demand is high or when costs change. That's general background, not a fact about this case.
How much can you borrow against gold?
A lender gives you only a share of your gold's value. That share is called the loan-to-value ratio, or LTV. RBI sets limits on it for gold loans. For this example, we'll use 75%.
Gold's price changes every day. Check the daily gold price first. You can also see per-gram loan values before you visit a branch.
Say you pledge 50 grams of gold. Assume gold is worth ₹10,000 a gram. Your gold is then worth ₹5,00,000. At 75% LTV, you could borrow up to ₹3,75,000. At 12% a year, one year of interest is ₹45,000. That's about ₹3,750 a month.
| Gold pledged | Assumed gold value | Loan at 75% LTV | Interest for one year at 12% |
|---|---|---|---|
| 10 grams | ₹1,00,000 | ₹75,000 | ₹9,000 |
| 25 grams | ₹2,50,000 | ₹1,87,500 | ₹22,500 |
| 50 grams | ₹5,00,000 | ₹3,75,000 | ₹45,000 |
These numbers are only an example. They aren't Bajaj Finance's actual rates or gold prices.
Who is affected
The people most affected are those with a gold loan from this lender today. Their loan terms are in their agreement, so that's the first place to look.
People planning to borrow soon should also take note. If you were counting on the closed scheme, ask what offer replaces it.
Everyone else with gold at home can use this as a nudge. Know what your gold could fetch as a loan. Know what rate you'd pay. A quick comparison costs you nothing.
What to do now
You don't need to rush. A few calm steps are enough.
- Find your loan agreement. Note the rate, fees and loan period.
- Ask the lender, in writing, whether the closed scheme touches your loan.
- Use the EMI calculator to check what you pay each month.
- Compare at least two lenders on rate and fees. Our gold loan hub is a good start.
- Check that the lender is registered with RBI. Keep the receipt for every item of gold you pledge.
Frequently asked questions
Will my existing Bajaj Finance gold loan change because a scheme closed?
Usually not. Your loan runs on the terms you signed. Check your agreement or ask the lender to be sure.
Does a doubled loan book make a lender safer for my gold?
Not by itself. It shows growth, not safety. Always confirm the lender is RBI-registered and keep your pledge receipt.
Should I move my gold loan to another lender now?
Only if another lender offers a clearly lower total cost. Count processing fees and any early closing charges first.
BankCreds analysis
This headline sounds big, but it matters more to investors than to you. A doubled loan book tells you the lender is growing fast. It doesn't tell you your loan is safer or costlier.
A household example
Say you have 40 grams of gold and need ₹2 lakh. At the example price of ₹10,000 a gram, your gold is worth ₹4 lakh. A 75% limit allows ₹3 lakh. Borrow only the ₹2 lakh you need. At 12% a year, that's ₹24,000 in interest, not ₹36,000.
A closed scheme only hurts you if you planned to use it. If you did, ask for the lender's best current offer. Don't rush to switch, since moving a loan can bring fees.
The real lesson is about price. A 1% rate gap on ₹3 lakh is ₹3,000 a year. That's worth one phone call. Read this news as a reason to compare, not a reason to move your gold.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- NDTV Profit — originating report https://www.ndtvprofit.com/markets/bajaj-finances-gold-loan-book-doubles-then-it-pulls-the-plug-on-a-scheme-12209784
- RBI Master Directions — RBI sets limits on how much lenders can lend against gold https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx
- RBI list of registered NBFCs — Check that a lender is registered with RBI https://www.rbi.org.in/Scripts/BS_NBFCList.aspx
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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