The market value of gold can influence how much a lender may offer against eligible jewellery or coins. However, the retail price of jewellery is not the same as the assessed value used for a gold loan.
The assessed value depends on factors such as eligible net gold weight, purity, the applicable valuation method and the lender's terms. Stones, enamel and other non-gold parts are excluded from the gold weight used for valuation.
A higher market price may increase the assessed value of the same eligible gold, all else being equal. It does not guarantee a particular loan amount, approval or interest rate.
How is gold loan eligibility calculated?
Gold loan eligibility depends on the gold offered as collateral and the lender's assessment. The final amount is subject to applicable regulatory limits, verification and the lender's approval. Key factors include:
- Eligible gold weight: The net weight of the eligible gold is used, excluding stones and other non-gold parts.
- Purity: The gold must meet the lender's accepted purity requirements.
- Applicable valuation rate: The lender follows the applicable gold valuation method rather than simply using the jewellery's retail purchase price.
- Loan-to-value limit: The eligible loan amount is subject to the applicable LTV limit.
- Customer and product requirements: KYC, credit checks where applicable and other policy conditions may affect eligibility.
These factors determine the amount that may be offered, but the final decision rests with the lender after the required checks.
Please note: We do not simply use today's headline rate. As per latest RBI guidelines, 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 to evaluate the gold’s value. 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 is based on the weight and purity of your gold, not what you originally paid for it
- 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.
- 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 a letter from the NPR
- There are no foreclosure charges; you can close the loan early without any penalty
- Choose from multiple repayment options. Under bullet repayment, principal and interest are paid at maturity, while under regular repayment, interest is paid half-yearly and principal at maturity.
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 Roorkee, gold purity, and weight.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
