The 916 gold rate can affect the value considered when assessing your gold for a loan. Since 916 gold is 22 karat gold, its purity and net weight are key factors in valuation. A change in the gold rate may affect the eligible loan amount, subject to applicable LTV limits and lender eligibility criteria.
What decides your eligible loan amount?
Your eligible loan amount depends on the following factors:
- Weight of your gold
- Purity of your gold
- Applicable gold rate on the day of assessment
- Applicable Loan-to-Value (LTV) ratio
Only the intrinsic value of your gold is considered during valuation. Stones and other embellishments attached to the jewellery, coins and ornaments are not included.
The loan amount is determined using the applicable Loan-to-Value (LTV) ratio, which varies based on the loan size. While the eligible loan amount depends on the value of your pledged gold, the overall borrowing cost is influenced by the applicable gold loan interest rate.
The final loan amount depends on the applicable LTV ratio, the purity of your gold and the gold price used for valuation. The valuation is based on 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. The applicable LTV ratio must be maintained throughout the loan tenure and may change as per RBI guidelines and the lender's policy.
The applicable LTV ratio varies based on the loan amount. To know more, click here.
Gold loan basics: What you should know before applying
With Bajaj Finance, you can get a gold loan of Rs. 5,000 to Rs. 2 crore by pledging your gold jewellery, ornaments, or gold coins. The gold loan interest rate starts from 9.50% per annum. Jewellery and ornaments are accepted between 18-22 purity. Gold coins are accepted up to 24 karat purity. Your gold is stored in secure vaults with insurance cover for the entire loan duration. Your pledged gold remains stored in secure vaults and is insured throughout the loan tenure.
Before applying, here are a few important details:
- Your loan amount is based on the weight and purity of your gold, not what you originally paid for it
- 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
- Only one valid KYC document is required: Aadhaar card, Voter ID, passport, driving licence, NREGA job card, or a letter from the NPR
- You can choose from multiple repayment options. Under bullet repayment, both the principal and interest due are paid at maturity, while under regular repayment, interest is paid at half-yearly intervals as per the repayment schedule and the principal is paid at maturity.
- There are no foreclosure charges or pre-paymewnt charges. So, you can close the loan early without any penalty
Before applying, use the gold loan calculator to estimate your eligible loan amount or check your gold loan eligibility online based on the gold price today, your gold's purity, and its weight.
Quick tip: Discover your borrowing potential by checking your gold loan eligibility. It takes just a few clicks and no waiting.
