The gold rate in Bareilly directly affects the value of your pledged gold and the loan amount you may be eligible to receive. Higher gold prices generally increase the value of your gold, which may result in a higher eligible loan amount, while lower prices may reduce it. Lenders assess the purity and weight of your gold and apply the applicable Loan-to-Value (LTV) ratio based on regulatory guidelines.
What decides your eligible loan amount?
Your eligible gold loan amount depends on the following factors:
- Gold weight
- Gold purity
- 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, enamel, pearls, and other embellishments attached to the gold are not included.
The final loan amount is determined based on the applicable LTV ratio, the verified purity of your gold, and the lower of either 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 be maintained throughout the loan tenure and may be revised in accordance with RBI guidelines and the lender's policy.
Along with the eligible loan amount, it is also important to consider the gold loan interest rate, as it directly affects the overall borrowing cost and repayment amount. Comparing interest rates and repayment options can help you choose a gold loan that best suits your financial needs.
The loan amount is calculated using the applicable LTV ratio, which varies based on the loan amount. To know more, click here.
Gold loan basics: What you should know before applying
If you need funds for a planned or unexpected expense, a gold loan can help you access money by pledging eligible gold assets. Bajaj Finance offers loans from Rs. 5,000 to Rs. 2 crore, with gold loan interest rates starting from 9.50% p.a.
You can pledge gold jewellery and ornaments within the 18-22 karat purity range. Eligible gold coins with purity of up to 24 karat can also be considered. Once pledged, your gold is securely kept in insured vaults for the entire loan tenure.
A few things worth knowing before you apply:
- 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 repay interest monthly, bi-monthly, quarterly, half-yearly, or annually, with the principal settled at the end of the tenure
- You can simply foreclose or part-prepay your loan without incurring any penalty
Before applying, use the gold loan calculator to estimate the loan amount you may be eligible for. You can also check your gold loan eligibility online to understand your potential borrowing amount based on the current gold rate in Bareilly, along with the purity and weight of your gold.
Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.