Gold loan process made easy with a handy checklist

Thinking about getting a gold loan? Before you proceed, check your eligibility and ensure you have all the necessary documents ready for a smooth loan approval process.
Check eligibility
Gold loan process made easy with a handy checklist
Check eligibility
2 min read
25 April 2025

Many people often consider gold as a safe investment option that they can easily convert into money when needed. Whether you need funds to fulfil personal goals or start a new business venture, you may sometimes require immediate access to funds.

Indians have a sentimental attachment to their gold, and they prefer not to part with it easily. However, in times of need, gold can be utilised as collateral to secure a loan. Many leading banks and NBFCs in India understand this sentiment and offer gold loans to cater to these requirements.

Bajaj Finance, for instance, provides gold loans starting from as low as Rs. 5,000 and going up to Rs. 2 crore. With competitive interest rates starting at just 9.50% per annum, Bajaj Finance ensures that borrowers can access funds at affordable terms.
If you are applying for a gold loan for the first time, this article provides a checklist to make the gold loan process simpler for you.

Gold Loan eligibility and documents checklist

  1. Evaluate your requirements: Determine the amount of funds that you need and how long you will require them. This will help you select the appropriate loan tenure and gold loan repayment terms.
  2. Check eligibility criteria: Understand the eligibility criteria set by the loan provider. Bajaj Finance has simple eligibility criteria to avail of a gold loan. You just need to be an Indian citizen aged between 21 to 70 years with the necessary gold loan KYC documents for identity and address proof.
  3. Gather required documents: Prepare the necessary documents such as identification proof, address proof. For a Bajaj Finserv Gold Loan, you only need any one of the following documents:
    1. Aadhaar Card
    2. Voter ID card
    3. Passport
    4. Driving licence
    5. NREGA job card
    6. Letter issued by National Population Registration.
  4. Determine loan amount: Assess the value of your gold to determine the loan amount you are eligible for. Bajaj Finance offers high loan per gram with loan amounts going up to 75% of the gold's market value.
  5. Loan application process: Visit the lender's website or branch office to fill out the loan application form. Provide accurate information and submit the required documents for verification.
  6. Gold valuation: The lender will assess the purity and value of the gold you are pledging to determine the loan amount. Before applying for a gold loan, gather the gold jewellery you plan to pledge, such as earrings, necklaces, and more.
  7. Loan approval and disbursement: Once the verification process is complete, and your gold is evaluated, the loan will be approved. The funds will then be disbursed to your bank account.

Read also - Gold Loans made easy: A beginner's guide to obtaining instant funds

Why is gold loan verification important

Gold loan verification is a very important step when you want to borrow money using your gold. This is done to make sure the gold is real, pure, and really belongs to you. Lenders like banks and finance companies do not want to take any risks. So, they follow a set of steps called the gold loan verification checklist. This checklist helps them confirm that everything is correct before giving the money.

The verification also checks your identity using your ID proof, like Aadhaar, Voter ID, passport, driving licence, NREGA job card or a letter from the National Population Registration. It helps the lender trust you. If they find that the gold is pure, they will approve your loan faster. If these checks are not done properly, the lender may face a big loss or delay the process. That is why verification is so important.

So, if you are planning to take a gold loan, remember that verification is not just for the lender. It also protects you and makes sure the loan is given safely and fairly.

How lenders verify the purity of gold for loans

Lenders need to check the purity of your gold before giving you a loan. This is because pure gold gives you a higher loan amount. If the gold is not pure or is mixed with other metals, the value becomes less. That is why this step is part of the gold loan verification checklist.

Lenders use special machines called karat meters to check how pure the gold is. Some may also use acid tests or look for the BIS hallmark stamp, which tells if the gold is 22K or 24K. The checking is done right in front of you, so you feel safe and trust the process.

If you bring a bill or receipt from the jeweller, it can make the checking faster. The gold is also weighed during this step. The more pure and heavy your gold is, the more loan money you can get.

This process is very simple and quick if your gold is good quality. So, always keep your gold safe and make sure it is pure before applying for a loan.

Do’s and don’ts during gold loan verification

When going for gold loan verification, it is helpful to follow some easy do’s and don’ts. These help you get your loan quickly without any problems. Also, it makes sure you are ready for the steps in the gold loan verification checklist.

Do’s:

  • Carry basic KYC documents like Aadhaar card.
  • Bring your gold clean and packed safely.
  • Keep your gold bill or receipt with you.
  • Be honest about the gold you are giving.

Don’ts:

  • Do not bring fake or low-quality gold.
  • Do not forget any important documents.
  • Do not hide any details about the gold.

Lenders need all the correct details to approve your gold loan. If anything is missing or wrong, it can delay the process or reduce the loan amount. By following these dos and don’ts, you show that you are responsible and serious about the loan. It also helps the lender trust you and complete the process quickly and safely.

How to apply for a gold loan

Applying for a Bajaj Finserv Gold Loan is hassle-free and offers two convenient options. You can either visit a nearby Bajaj Finserv branch or apply online through our website in just a few simple steps. Here is how to apply online:

  • Go to the Bajaj Finserv Gold Loan page.
  • Open the online application form.
  • Enter your 10-digit mobile number and receive an OTP.
  • Submit the OTP to verify your details.
  • Select your state and city to find the nearest branch.
  • Enter your full name and date of birth as per your PAN card.
  • Schedule an appointment at the nearest branch.

After submitting your application, a Bajaj Finserv representative will get in touch with you to guide you through the next steps. With a wide network of over 800 branches across India, Bajaj Finserv ensures quick and seamless loan processing for your convenience. To apply for a gold loan today, simply visit our Gold Loan Page.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What documents are required for gold loan verification?

To get a gold loan from Bajaj Finance, you need to show a valid ID proof like Aadhaar card, Voter ID, Passport, Driving Licence, NREGA job card, or a letter from the National Population Registration. These help confirm your name and address. 

Can I get a gold loan without proof of income?

Yes, you can get a gold loan without showing any income proof. Bajaj Finance offers loans based on the value of your gold. You do not need to be working or have a regular salary to apply for the loan.

How long does gold loan verification take?

Gold loan verification is very fast. After you bring your gold and any one of your basic KYC document to the branch, the gold is checked for its purity and weight. Once that is done, the loan is approved quickly, and the money is given often on the same day.

What are the steps of a gold loan?
  1. Apply for a gold loan online or simply visit the nearest Bajaj Finserv Gold Loan.
  2. Bring your gold and your KYC document.
  3. Your gold is checked for purity and weight.
  4. A loan amount is offered based on the gold’s value.
  5. Once approved, the money is given to you.
What is the new rule of gold loans?

​The Reserve Bank of India (RBI) has introduced new rules for gold loans to enhance safety and transparency. Now, lenders must ensure that gold used as collateral is not already pledged elsewhere and verify its purity and ownership. The maximum loan amount is capped at 75% of the gold's value. Additionally, lenders are required to monitor how borrowers use the loan funds and maintain proper records. These measures aim to protect both borrowers and lenders.

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