Gold rates in Gandhidham affect the amount you may borrow against your gold. When gold prices rise, the assessed value of eligible gold may increase, potentially allowing a higher loan amount. When prices fall, the eligible amount may decrease. The final loan amount depends on gold purity, net weight, applicable loan-to-value (LTV) limits, and lender eligibility criteria.
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 decorations on your jewellery are not counted.
The final 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 to know before applying
Bajaj Finance offers loans against eligible gold jewellery, ornaments and gold coins. You can borrow from Rs. 5,000 to Rs. 2 crore, with interest rates starting at 9.50% per annum. The amount you can borrow depends on your gold's purity, eligible weight and assessed value.
Before applying, review these important details to understand how a gold loan works.
- Loan amount: The eligible amount is calculated using your gold's assessed value, not its original purchase price.
- Accepted gold purity: Jewellery and ornaments must fall within 18-22 purity. Gold coins are accepted up to 24 karat purity.
- Safe storage: Your pledged gold is stored in secure vaults with insurance cover for the loan duration, subject to applicable terms.
- Gold valuation: 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, subject to applicable requirements.
- KYC documents: You must provide valid documents required under the current KYC process. Check the latest accepted-document list before applying.
- Early repayment: Review the current schedule of charges and your loan agreement for the applicable foreclosure terms.
- Repayment options: Under bullet repayment, the principal and interest are paid at maturity. Under a half-yearly interest option, interest is paid every six months and the principal is paid at maturity, subject to the repayment terms.
Before applying, use the gold loan calculator to estimate the amount you may be eligible to borrow. You can also check your eligibility based on your gold's purity, eligible weight and applicable valuation rate.
Need funds against your gold? Apply for a Bajaj Finance Gold Loan through a simple application process.
