Gold prices in Vellore can affect the value of eligible gold pledged for a gold loan. When gold prices change, the assessed value of your gold may also change. However, the final loan amount depends on factors such as gold purity, eligible weight, applicable valuation and the Loan-to-Value (LTV) ratio.
What decides your eligible loan amount?
The amount you may get against your gold depends on:
- Gold purity: Higher-purity eligible gold generally has a higher value.
- Eligible weight: The loan assessment considers the net weight of eligible gold.
- Gold valuation: The applicable gold value at the time of assessment is considered.
- LTV ratio: The loan amount is determined based on the applicable LTV limit.
- Interest rate: The applicable gold loan interest rate affects the overall borrowing cost.
Stones, enamel, or any decoration on your jewellery do not count towards your loan value. Only the actual gold content is assessed.
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 and protects the lender from the opposite. 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: what you should know before applying
If you are considering a gold loan in Vellore, here are some key details to know before applying.
With Bajaj Finance, you can borrow from Rs. 5,000 up to Rs. 2 crore against eligible gold jewellery, ornaments or gold coins. The gold loan interest rate starts from 9.50% per annum.
Jewellery and ornaments between 18-22 karat purity are accepted, while gold coins are accepted up to 24 karat purity. Your pledged gold is stored in secure vaults and remains insured throughout the loan tenure.
A few things worth knowing before you apply for a gold loan:
- Your loan amount depends on the eligible weight and purity of your gold, not its original purchase price.
- Bajaj Finance considers 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.
- One valid KYC document is required, such as an Aadhaar card, Voter ID, passport or driving licence.
- There are no prepayment or foreclosure charges for closing the loan early.
- Before applying, use the gold loan calculator to estimate your eligible loan amount. You can also check your gold loan eligibility based on today's gold rate in Vellore, gold purity and eligible weight.
This can help you understand the loan terms before pledging your gold.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.