The applicable gold valuation rate on the day of assessment helps determine your eligible loan amount, along with the weight and purity of your gold and the applicable loan-to-value (LTV) ratio. A higher valuation rate may increase the eligible amount, while a lower rate may reduce it. The amount is not based on the price you originally paid for your gold.
How is gold loan eligibility calculated?
Your eligible loan amount depends on:
- Gold weight: The net weight of eligible gold in your jewellery or ornaments.
- Gold purity: The karat value of your gold.
- Applicable gold valuation rate: The rate used by the lender to assess your gold.
- Loan-to-Value (LTV) ratio: The permitted proportion of the assessed gold value that can be offered as a loan.
Only the eligible net gold content is assessed. Stones, enamel and other decorative materials are excluded from the gold weight used for valuation.
Please note: We also do not simply use today's headline rate. 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.
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
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 depends on the eligible net gold weight, purity and applicable valuation rate, not the original purchase price.
- 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 to value your gold.
- You need one valid KYC document, such as an Aadhaar card, Voter ID card, passport, driving licence, NREGA job card or a letter issued by the National Population Registration.
- There are no foreclosure charges, so you can close the loan early without a foreclosure penalty.
- You can choose from multiple repayment options. Under bullet repayment, the principal and interest are paid at maturity. Under regular repayment, interest is paid half-yearly and the principal is repaid at maturity.
Before applying, use the gold loan calculator to estimate your repayment obligations and check your gold loan eligibility online. This can help you assess your borrowing capacity based on your gold's weight, purity and applicable valuation rate.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.
