The applicable gold price when your gold is assessed directly affects the loan amount you may be eligible for. It is not based on the price you paid when you bought the gold or an earlier market rate. If the applicable gold price is higher, you may be eligible for a higher loan amount against the same gold, subject to the applicable Loan-to-Value (LTV) limit.
What decides your eligible gold loan amount?
Your eligible loan amount depends on:
- Gold weight: The net weight of eligible gold in your jewellery, ornaments or accepted gold coins.
- Gold purity: Higher-purity gold generally has a higher value per gram.
- Applicable gold price: The lower of the previous day's closing price or 30-day average closing price published by IBJA or SEBI regulated commodity exchange.
- LTV limit: The maximum percentage of the assessed gold value that can be offered as a loan.
Stones, gems, enamel and other embellishments are excluded from the gold value. Only the intrinsic value of the eligible gold is considered.
For valuation, Bajaj Finance considers the lower of the previous day's closing price or the 30-day average closing price for the relevant purity, as published by IBJA or a SEBI-regulated commodity exchange. The applicable LTV limit also varies based on the loan amount. To know more about LTV, click here
Gold loan basics to know before applying
If you need funds for a planned expense or an urgent financial need, a gold loan in Chittoor can help you borrow against eligible gold jewellery. Before applying, it is worth knowing how the loan amount, interest rate, repayment options and gold valuation work.
Bajaj Finance offers gold loans ranging from Rs. 5,000 to Rs. 2 crore, with the gold loan interest rate starting at 9.50% p.a., subject to eligibility and applicable terms.Before you apply, keep these points in mind:
- Loan amount: The amount you can borrow depends on your gold's purity, net weight and assessed value. It is not based on the original price you paid for the jewellery.
- Gold valuation: Bajaj Finance determines the applicable gold value using the lower of the previous day's closing price or the 30-day average closing price for the relevant purity, in line with its valuation policy.
- KYC documents: Keep a valid identity document ready, such as an Aadhaar card, Voter ID, Passport or Driving Licence. Additional documents may be required, depending on the application.
- Repayment options: With bullet repayment, the principal and interest due are paid at maturity. Under the regular repayment option described in the loan terms, interest is paid at half-yearly intervals and the principal is paid at maturity.
- Prepayment charges: Part-prepayment and full prepayment charges are nil, subject to the applicable loan terms.
- Gold safety: Pledged gold is stored securely and insured against specified risks while in Bajaj Finance's custody, subject to the applicable terms.
You can use the gold loan calculator to estimate your possible loan amount and plan your borrowing. Treat the result as an estimate, as the final amount depends on the physical evaluation of your gold, its assessed value, your eligibility and the applicable loan-to-value (LTV) limit.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
