The gold price in Kharagpur today can influence the loan amount you may receive against eligible gold. When gold prices rise in Kharagpur, the same quantity of eligible gold may support a higher loan amount. When prices fall, the eligible amount may decrease.
However, the final amount depends on the gold’s purity, net weight, assessed value and the applicable loan-to-value (LTV) limit.
How is gold loan eligibility calculated?
Your eligible loan amount depends on the following factors:
- Gold weight: The net weight of the gold being pledged.
- Gold purity: The amount of pure gold in your jewellery or ornaments.
- Applicable gold rate: The rate used to value your gold under the lender's valuation rules.
- Loan-to-Value (LTV) ratio: The permitted percentage of the assessed gold value that can be offered as a loan.
Only the eligible gold content is assessed. Stones, enamel and other decorative materials are excluded from the gold valuation.
Please note: As per RBI, the final loan amount depends on the eligible LTV, actual gold purity and 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. The LTV ratio must be maintained throughout the loan tenure and is subject to applicable RBI guidelines and lender policies.
The maximum permitted LTV varies by loan amount. To learn how these LTV limits work, 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 covered by insurance during the loan tenure.
Keep these points in mind before applying:
- Your loan amount depends on the weight and purity of your gold, not the price you originally paid for it.
- Jewellery and ornaments must meet the accepted purity range of 18-22, while gold coins are accepted up to 24 karat purity.
- Your pledged gold is stored in secure vaults with insurance cover during the loan tenure.
- 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 to assess your gold.
- You need a valid KYC document, such as an Aadhaar card, Voter ID, passport, driving licence, NREGA job card or a letter issued by the National Population Register.
- There are no foreclosure charges, so you can close your loan early without a foreclosure penalty.
- Multiple repayment options are available. Under bullet repayment, the principal and interest are paid at maturity. Under regular interest servicing, interest is paid half-yearly as scheduled and the principal is paid at maturity.
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 the applicable gold valuation, purity and net weight of your gold.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
