The applicable gold value at the time of assessment helps determine how much you may borrow. The price you originally paid for the jewellery, or an older gold rate, does not decide the loan amount. If the applicable gold value is higher, the same gold may support a larger loan. If it is lower, the eligible amount may reduce.
What decides your eligible loan amount?
Your gold loan amount depends on:
- Weight of the gold
- Purity of the gold
- Applicable gold price
- Loan-to-Value (LTV) ratio against gold loan amount
Only the actual gold content is considered during valuation. Stones, enamel, and other decorative or non-gold parts are not included.
Bajaj Finance does not simply use today's headline rate to evaluate the gold's value. As guided by RBI, we use whichever is lower between the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange. This protects you from a sudden price spike inflating things unrealistically and protects the lender from the opposite.
Please note, the maximum LTV eligible for a loan depends on the loan amount and cannot be more than the limits given. To know more, click here.
Gold loan basics — what you should know before applying
If you are considering a gold loan in India, here are the essential details to know before you apply. With Bajaj Finance, you can borrow from Rs. 5,000 to Rs. 2 crore against 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 secured vaults with insurance cover for the entire loan duration.
Before applying for a gold loan in Ahmedabad, keep these points in mind:
- Your loan amount depends on the weight and purity of the gold you pledge, not the price you originally paid.
- Bajaj Finance considers 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.
- You need only one valid KYC document, such as Aadhaar, Voter ID, passport, driving licence, NREGA job card, or an NPR letter.
- 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).
- You can use the gold loan calculator to estimate your eligible amount.
- There are no foreclosure charges, so you can close the loan early without paying a penalty.
Before applying, check your gold loan eligibility online based on the gold rate in Ahmedabad, 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.