The value assigned to your gold during the lender's assessment helps determine your eligible gold loan amount. The retail gold rate displayed for Adoni does not automatically determine how much you can borrow.
When the assessed value of your gold rises, it may support a higher eligible loan amount. When the assessed value falls, the eligible amount may decrease. The final amount also depends on gold purity, net gold weight, the applicable LTV limit and the lender's assessment.
If you plan to pledge jewellery in Adoni, check your gold loan eligibility to estimate your borrowing capacity before applying.
How is gold loan eligibility calculated?
Your eligible gold loan amount depends on four main factors:
- Gold weight: The net weight of the gold being pledged.
- Gold purity: The proportion of pure gold in the jewellery, ornament or coin.
- Applicable gold valuation rate: The rate used by the lender to assess the gold.
- Loan-to-Value (LTV) ratio: The percentage of the assessed gold value that can be offered as a loan, subject to applicable limits.
Stones, enamel and other decorative materials are excluded from the net gold weight used for valuation.
Please note: We also do not simply use today's headline rate. 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. 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 eligible gold jewellery, ornaments and gold coins. The gold loan interest rate starts from 9.50% per annum.
Jewellery and ornaments must meet the accepted purity range of 18-22. Gold coins are accepted up to 24 karat purity. Your pledged gold is stored in secure vaults and insured for the loan duration.
Before applying, keep these points in mind:
- Loan amount: The eligible amount depends on the weight, purity and assessed value of your gold, along with the applicable LTV limit.
- Gold valuation: Bajaj Finance uses the approved valuation method based on 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.
- KYC documents: Accepted documents include an Aadhaar card, Voter ID card, passport, driving licence, NREGA job card or a letter issued by the National Population Register, subject to applicable requirements.
- Foreclosure: There are no foreclosure charges for closing the loan early.
- Repayment options: Under bullet repayment, the principal and interest are paid at maturity. Under regular repayment, interest is paid half-yearly and the principal is paid at maturity, as per the agreed repayment schedule.
Before applying, use the gold loan calculator to estimate your repayment obligations. You can also check your gold loan eligibility online to understand your borrowing capacity based on your gold's assessed value, purity and weight in Adoni.
Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.
