How does the gold price in Jharkhand affect your gold loan?
Apart from its cultural value, gold is widely used as collateral to meet short-term financial needs. The gold price in Jharkhand plays an important role in deciding how much you can borrow through a gold loan. When gold prices increase, the value of your pledged jewellery also rises, which may increase your eligible loan amount.
How is gold loan eligibility calculated?
Your eligible loan amount depends on:
- Gold weight
- Gold purity
- Applicable gold rate in Jharkhand on the day of assessment
- Loan-to-Value (LTV) ratio
Only the pure gold content is considered while evaluating your jewellery. Stones, enamel, and other decorative elements are not included in the valuation.
The final loan amount depends on the applicable LTV ratio, 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 is 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: 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 18K and 22K purity. Gold coins are accepted up to 24K 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 licence, NREGA job card, or letter from the NPR
- You can repay interest monthly, bi-monthly, quarterly, half-yearly, or annually, with the principal settled at the end of the tenure
- 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 check your gold loan eligibility online to understand your borrowing capacity based on today's gold rate in Jharkhand, gold purity, and weight.
