The gold price in Surat today can affect the amount you may borrow against your eligible gold. A higher applicable gold valuation may increase your eligible loan amount, while a lower valuation may reduce it. The final amount also depends on gold purity, weight and the applicable Loan-to-Value (LTV) ratio.
What decides your eligible loan amount?
Your eligible gold loan amount generally depends on:
- The weight of your gold
- Its purity
- The applicable gold valuation
- The Loan-to-Value (LTV) ratio
Stones, enamel, gems and other decorative elements are not included in the gold value. The assessment considers only the eligible gold content.
The applicable valuation is also not based simply on the day's displayed gold rate. As per RBI, we consider the lower of the previous day's closing price or the 30-day average closing price for the relevant purity, as published by IBJA or a SEBI-regulated commodity exchange.
Please note that the maximum LTV depends on the loan amount and cannot exceed the applicable limits. To know more, click here.
Gold loan basics: what you should know before applying
If you are considering a gold loan in Surat, understanding the key terms can help you plan your borrowing.
With Bajaj Finance, you can borrow from Rs. 5,000 up to Rs. 2 crore against eligible gold jewellery, ornaments or gold coins. The gold loan interest rate starts from 9.50% per annum.
Gold jewellery and ornaments between 18-22 karat purity are accepted, while gold coins can be accepted up to 24 karat purity. Your pledged gold is stored in secure vaults with insurance cover throughout the loan tenure.
Before applying, keep these points in mind:
- Your eligible loan amount depends on the weight and purity of your gold, not its original purchase price.
- Bajaj Finance uses the lower of the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange.
- One valid KYC document is required, such as an Aadhaar card, Voter ID, passport, driving licence, NREGA job card or NPR letter.
- Under bullet repayment, the principal and pending interest are paid at maturity. Under regular repayment, interest is paid at scheduled intervals, with the principal due at maturity.
- No foreclosure charges are applicable, subject to the terms of the loan.
Before applying, use the gold loan calculator to estimate your eligible amount, or check your gold loan eligibility online. Your borrowing capacity depends on factors such as the applicable gold valuation, purity and weight of the eligible gold.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.
