The gold rate used for your loan is based on the valuation of your gold when it is assessed. It is not based on the price you paid for the jewellery or an older gold rate. When gold prices are higher, the same eligible gold may support a higher loan amount. When prices fall, the eligible loan amount may reduce.
Gold prices in Mysore change regularly. Check your gold loan eligibility to see how much you may be able to borrow.
How is gold loan eligibility calculated?
Your eligible loan amount depends on:
- Gold weight
- Gold purity
- Applicable gold rate on the day of assessment
- Loan-to-Value (LTV) ratio
Only the pure gold content is assessed. Stones, enamel and other decorative elements on jewellery are not counted.
The final gold loan amount depends on the eligible LTV, actual gold purity 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 LTV ratio must be maintained throughout the loan tenure and may be revised as per RBI guidelines and lender policies.
The loan amount is determined using the applicable LTV ratio, which varies by loan size. To know more, click here.
Gold loan basics: What you should know before applying
With Bajaj Finance, you can borrow from Rs. 5,000 to Rs. 2 crore against your gold jewellery, ornaments and 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.
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 license, NREGA job card or a letter from the NPR
- You can choose between two repayment options: pay the principal and applicable interest together at the end of the loan tenure (Bullet Repayment), or pay the interest at half-yearly intervals and repay the principal at the end of the tenure (Regular Repayment).
- There are no foreclosure charges; you can close the loan early without any penalty
Before applying, use the gold loan calculator to estimate your eligible amount, or gold loan eligibility online to understand your borrowing capacity based on today's gold rate in Mysore, gold purity and weight.
Wondering how much you can borrow on your gold? Just check your gold loan eligibility—it takes seconds and minimal paperwork!
