How much gold is required to get a Gold Loan

The loan amount that can be sanctioned depends on the value of the pledged gold. Read to know how much gold is required to get a gold loan.
How much gold is required to get a Gold Loan
2 min read
14 July 2023

When you find yourself in need of some extra funds, getting a gold loan can be a helpful option. It is a way to unlock the value of your gold jewellery and use them as collateral to secure a loan. But you may be wondering, "How much gold is required to get a gold loan?" Let us break it down for you.

The loan amount that can be sanctioned for a ​​gold loan depends on various factors such as the loan-to-value ratio, purity of gold, and prevailing market rates. The loan-to-value ratio is the maximum amount of loan that can be sanctioned against the pledged gold. Bajaj Finserv offers up to 75% of the value of the pledged gold. 

The purity of the gold also plays a crucial role in determining the loan amount. The higher the purity of the gold, the higher the loan amount that can be sanctioned. Generally, gold jewellery with a purity level between 18-22 karats is considered suitable for availing gold loans.

The prevailing market rates of gold also influence the loan amount that can be sanctioned. The loan amount is calculated based on the current market value of the pledged gold. As the market rates of gold fluctuate, the loan amount that can be sanctioned also varies.

Now, let us talk about how much gold is required to get a gold loan. The minimum amount of gold required for a gold loan depends on the lender's policies and loan-to-value ratio. You can obtain a gold loan from Bajaj Finserv, starting at Rs. 5,000 and going up to Rs. 2 crore. This loan is available for your gold jewellery, with a minimum weight of 1 gram.

Suppose the loan-to-value ratio is 75%. In that case, you can get a maximum loan amount of Rs. 37,500 by pledging 10 grams of gold, considering the current market price of gold is Rs. 5,000 per gram. Similarly, you can get a maximum loan amount of Rs. 1,12,500 by pledging 30 grams of gold, considering the same loan-to-value ratio.

To know minimum gold required for gold loan, you can use the Bajaj Finserv ​​Gold Loan Calculator and estimate the weight of the gold jewellery you need to pledge by inputting the desired loan amount. 

Once you understand the loan amount that you are eligible for, you can decide whether to borrow the full amount or a partial amount. It is important to borrow only what you need and can comfortably repay.

Gold holds significant value and represents wealth and prosperity. If you are seeking financial assistance, you can utilise your gold jewellery to obtain a gold loan. Obtaining a gold loan is a simple process. All you have to do is go to a nearby Bajaj Finserv branch or visit our website. By pledging your gold jewellery, you can quickly receive the required funds in return.

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