The gold rate plays a key role in determining your gold loan amount. A higher gold rate increases the value of your pledged gold, which may help you qualify for a higher loan amount. Conversely, lower gold rates can reduce the value of your gold and the amount you may be eligible to borrow. Tracking current gold prices can help you make informed borrowing decisions.
What decides your eligible loan amount?
Your gold loan eligibility depends on:
- How much your gold weighs
- How pure it is (18K, 22K, or 24K)
- The applicable gold price
- The applicable Loan-to-Value (LTV) ratio
Stones, enamel, or any decoration on your jewellery do not count towards your loan value. Only the actual gold content is assessed.
Please note: As guided by RBI, we do not use today's live headline rate directly. We use whichever is lower — the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange. This keeps the valuation fair and consistent for both you and the lender.
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 Ujjain, here is what you need to know before you apply.
With Bajaj Finance, you can borrow from Rs. 5,000 up to Rs. 2 crore against your gold jewellery, ornaments, or coins. The gold loan interest rate starts from 9.50% per annum.
Jewellery and ornaments between 18-22 karat purity are accepted, and gold coins up to 24 karat purity are also eligible. Your pledged gold is stored in secured vaults with full insurance cover for the entire loan period.
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
- There are no foreclosure charges — close the loan early without any penalty
- Only one valid KYC document is needed — Aadhaar card, Voter ID, passport, driving licence, NREGA job card, or a letter from NPR
- You can choose from multiple repayment options as per convenience. 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 the gold loan eligibility online based on today's gold rate in Ujjain, your gold's purity, and its weight.
Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.