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How is a gold loan amount decided?
The gold loan amount depends on the purity, net weight and assessed value of your eligible gold, along with the applicable LTV limit. When you apply for a gold loan, your gold jewellery, ornaments or coins are assessed in your presence to ensure transparency in evaluation.
Bajaj Finance determines the value of your gold as per applicable valuation guidelines. This considers the lower of the previous day’s closing price or the 30-day average closing price for the relevant purity, as published by IBJA or a SEBI-regulated commodity exchange. You may not be able to borrow the full assessed value of your gold. The maximum LTV eligible for consumption loans per borrower depends on the loan amount and cannot be more than the limits given:
- Up to Rs. 2.5 lakh: up to 85% LTV
- Above Rs. 2.5 lakh to Rs. 5 lakh: up to 80% LTV
Above Rs. 5 lakh to Rs. 2 crore: up to 75% LTV
How is your gold loan amount decided during renewal?
Gold loans typically come with a repayment tenure of up to 12 months. Once this term ends, if you need more time, you can renew your loan by applying for a new one after clearing the previous amount. During renewal, your gold is revalued based on the applicable gold price on that day. If gold prices have increased, you may be eligible for a higher loan amount. On the other hand, if prices drop, the amount you can borrow may reduce. Understanding how is your gold loan amount decided during renewal helps you plan better and take advantage of rising gold values.
You can request a renewal of your gold loan before its maturity date, provided your loan is in standard status and within the permissible LTV limit. This facility is available only to existing gold loan customers. For bullet repayment loans, any accrued interest must be cleared before renewal. Renewals are subject to credit checks, and all approvals are properly recorded in BFL’s Core Banking or Loan Processing System, with fresh fees or charges applicable. Please note that gold loans cannot be renewed after the maturity date.
Pro tip: Before you pledge your gold, know your options. Check your gold loan eligibility and choose the right amount and tenure.
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How is your gold loan amount decided during a balance transfer?
If you already have a gold loan with another lender, you may consider transferring the outstanding loan balance to another lender based on the applicable terms. During the transfer process, your gold may be reassessed based on its purity, net weight and applicable gold valuation guidelines. The eligible loan amount can also depend on the applicable LTV limit.
If the assessed value of your gold has increased, you may be eligible for a higher loan amount, subject to the applicable LTV limit. If its assessed value is lower, the eligible amount may be lower. So, it is smart to make the transfer when market prices are favourable. Knowing how is your gold loan amount decided during a balance transfer can help you assess the terms before transferring your loan.
Quick tip: As gold prices change with global trends, knowing your borrowing capacity can help you stay prepared. Check your gold loan eligibility to know how much you can borrow today.
Frequently asked questions
Loan Process
Getting a loan against your gold jewellery is one of the easiest ways to meet any unplanned expense. To get a gold loan from Bajaj Finance, you can apply online, and we will call you and guide you on the next steps or you could simply visit the nearest gold loan branch in your city. To apply for an online gold loan, you need to follow the below mentioned steps:
- Click on ‘APPLY’ to open our online application form
- Enter your 10-digit mobile number and click on ‘GET OTP’
- Submit the OTP to verify your identity
- Enter your personal details full name and select your nearest branch
- Download your in-principle eligibility letter
Once done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.
We offer multiple repayment options where you may choose to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis as per your convenience. Please note that the principal amount and pending interest for your loan against gold, if any, will be due for payment at the time of loan maturity.
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Disclaimer
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *