The gold price in Katihar today affects how much you may be able to borrow against your jewellery. When the assessed value of your eligible gold increases, your potential loan amount may rise. If the value decreases, your eligible amount may fall.
The lender calculates the amount based on the applicable gold valuation price, purity, net weight and loan-to-value (LTV) limit. The retail gold rate or the price you originally paid for your jewellery does not determine the loan amount on its own.
Planning to pledge your gold in Katihar? Check your gold loan eligibility to estimate how much you may be eligible to borrow. The final amount depends on the lender’s assessment and applicable terms.
How is gold loan eligibility calculated?
Your eligible gold loan amount depends on four main factors:
- Gold weight: The net weight of the gold being pledged is assessed.
- Gold purity: The proportion of pure gold affects its assessed value.
- Applicable gold valuation rate: The lender uses the prescribed valuation method to calculate the gold's value.
- Loan-to-Value (LTV) ratio: This sets the maximum permitted loan amount as a proportion of the assessed gold value.
These factors help establish the value of your gold and the maximum amount you may be eligible to borrow.
Only the actual gold content is considered during valuation. Stones, enamel and other decorative materials are excluded from the net gold weight used for assessment.
The final loan amount depends on the eligible LTV, actual gold purity and 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. The applicable LTV limit must be maintained during the loan tenure, subject to RBI guidelines and lender policies.
The maximum LTV for eligible consumption loans varies by loan amount. To understand these limits, read more about the LTV ratio for a gold loan.
Understanding how your gold is assessed can help you plan your borrowing needs more realistically.
Gold loan basics: What you should know before applying
With Bajaj Finance, you can borrow from Rs. 5,000 to Rs. 2 crore against eligible gold jewellery, ornaments and gold coins. The gold loan interest rate starts from 9.50% per annum.
Jewellery and ornaments must meet the accepted purity range of 18-22, while gold coins are accepted up to 24 karat purity. Your pledged gold is stored in secure vaults and insured for the loan duration.
Before applying, keep these points in mind:
- Loan amount: Your eligible amount depends on the weight, purity and assessed value of your gold, not its original purchase price.
- 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.
- KYC documents: You can provide a valid document such as an Aadhaar card, Voter ID card, passport, driving licence, NREGA job card or a letter issued by the National Population Register, subject to applicable requirements.
- Gold security: Your pledged gold is stored in secure vaults with insurance cover for the loan duration.
- Foreclosure: There are no foreclosure charges if you close your loan early.
- 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 paid at maturity, as per the agreed repayment schedule.
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, gold purity, and weight.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
