The applicable gold rate on the day your gold is assessed determines your eligible loan amount not the rate from a previous month or the price you originally paid. A higher rate increases the loan amount available against the same gold, while a lower rate reduces it.
How is gold loan eligibility calculated?
Gold loan eligibility depends on:
- Gold weight
- Gold purity
- Applicable gold rate
- Loan-to-Value (LTV) ratio
Under gold loan eligibility, the valuation is based only on the intrinsic value of the gold. Stones and other embellishments are not considered.
The final loan amount depends on the eligible LTV, actual gold purity, and the lower of either 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 may be revised as per RBI guidelines and lender policies.
Please note, 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
If you are considering a gold loan anywhere in Sri Ganganagar, here are the essential details to know before you apply.
With Bajaj Finance, you can borrow from Rs. 5,000 up to Rs. 2 crore against your gold jewellery, ornaments, or gold coins. The gold loan interest rate starts from 9.50% per annum.
Jewellery and ornaments are accepted between 18-22 karat purity, while gold coins are accepted up to 24 karat purity. Your gold is stored in secured vaults with insurance cover for the entire loan duration. Your gold is stored in secured vaults with insurance cover for the entire loan duration.
A few things worth knowing before you apply for a gold loan:
- Your loan amount is based on the weight and purity of your gold, not what you originally paid for it.
- 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.
- Only one valid KYC document is required, such as an Aadhaar card, Voter ID, passport, driving licence, NREGA job card, or letter from the NPR.
- You can repay interest monthly, bi-monthly, quarterly, half-yearly, or annually, with the principal or any pending interest settled at the end of the tenure.
- There are no foreclosure charges, so you can close the loan early without any penalty.
Before applying, use the gold loan calculator to estimate your eligible amount, or check your gold loan eligibility online to understand your borrowing capacity based on today's gold rate in Sri Ganganagar, gold purity, and weight.
Apply in minutes. Money in account instantly with a Bajaj Finance Gold Loan*