The value of your gold at the time of assessment helps decide how much you can borrow. The price you originally paid does not determine the loan amount. A higher assessed gold value may support a higher loan amount, while a lower value may reduce it.
What decides your eligible loan amount?
Your gold loan amount mainly depends on:
- Weight of the gold
- Purity of the gold
- Applicable gold price
- Loan-to-Value (LTV) ratio
Only the actual gold content is considered during valuation. Stones, enamel, beads, and other non-gold parts are not included. Lenders also do not simply use today's headline rate. They 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 and protects the lender from the opposite.
Please note, 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
If you are considering a gold loan in Tirupati, here are the some important details to know before you apply. With Bajaj Finance, you can borrow from Rs. 5,000 to Rs. 2 crore against your gold jewellery, ornaments, or 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 secured vaults with insurance cover for the entire loan duration.
Before applying for a gold loan in Tirupati, keep these points in mind:
- Your loan amount depends on the weight and purity of the gold you pledge, not its original purchase price.
- Bajaj Finance considers the lower of the previous day’s closing rate or the 30-day average closing rate published by IBJA or a SEBI-regulated commodity exchange.
- You need only one valid KYC document, such as Aadhaar, Voter ID, passport, driving licence, NREGA job card, or an NPR letter.
- 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.
- You can close the loan early without paying foreclosure charges.
Before applying, use the gold loan calculator to estimate your eligible amount. You can also check your gold loan eligibility online based on the gold rate in Tirupati, along with the purity and weight of your gold.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.