What are the maximum and minimum limit for gold loan?

2 min read
03 May 2025

Gold has been a trusted and valuable asset for centuries, symbolising wealth and security. Today, it also serves as an excellent financing tool through gold loans. By pledging your gold, you can access funds quickly without selling your jewellery. Lenders like Bajaj Finance offer flexible gold loans, with the gold loan minimum amount often starting from small values, making it accessible for all.

The maximum gold loan per gram depends on the gold’s purity, weight, and current market rates. To get the highest gold loan, lenders assess the gold’s value carefully. While the maximum gold loan amount you can get varies by lender, it is influenced by the maximum amount for gold loan policies, usually capped at a few crores. Understanding these limits helps you plan better. Additionally, the gold loan maximum amount you are eligible for will depend on the lender’s terms and your pledged gold’s quality.

Here are some of the factors that impact the value of gold loan you can get

  1. Current per gram rate of gold: The current per gram gold loan rate is influenced by market fluctuations, commodity market volatility, and other economic factors. This rate determines the underlying value of 22-karat pure gold on the day of borrowing and directly affects the maximum gold loan per gram you can receive. Knowing how does the gold rate affect your gold loan is crucial.
  2. Loan to value ratio (LTV): The LTV refers to the percentage of the collateral’s market value that a lender is willing to finance. For gold loans, the gold loan maximum amount is calculated as a percentage per gram of gold, with the RBI capping LTV at 75%, though this can vary under special conditions.
  3. Loan financing limit: Lenders set a maximum amount for gold loan that limits total financing, regardless of gold weight or value. With Bajaj Finserv, the gold loan minimum amount begins at ₹5,000, while the gold loan maximum amount can go up to ₹2 crore, helping both small and large borrowers.
  4. Weight of gold: The weight of the gold jewellery or ornaments you pledge, combined with the maximum gold loan per gram and LTV, determines the highest gold loan you can access.

When borrowing, it is important to assess your affordability by considering the interest rate, repayment frequency, and the repayment method for gold loan you choose, ensuring smooth and stress-free repayments.

Factors that impact gold loan rate of interest

Several factors influence the interest rate on a gold loan. Understanding these can help you secure the best possible terms. Here are the key factors:

  1. Gold purity and weight: The purity and weight of the gold jewellery you pledge directly affect the interest rate. Higher purity and weight can lead to a higher loan amount, potentially influencing the interest rate.
  2. Loan amount: The interest rate may vary based on the loan amount you wish to borrow. Lenders often offer better rates for larger loans, but this can also depend on the value of the gold pledged.
  3. Loan-to-value (LTV) ratio: The LTV ratio determines the maximum loan amount you can borrow based on the gold's value. A higher LTV can sometimes lead to a higher interest rate, depending on the lender's policies.
  4. Repayment method for gold loan: The repayment option you choose, such as monthly, quarterly, or bullet repayment, can influence the interest rate. More flexible repayment terms may lead to slightly higher interest rates.
  5. Market conditions and gold rates: The interest rate on your gold loan is also affected by the fluctuating gold prices and market conditions. Higher gold prices can impact the overall loan rate.
  6. Credit profile and income stability: While most gold loan providers do not require income proof, a stable financial background can help you secure more favourable loan terms and potentially lower interest rates.

Understanding these factors can help you navigate the gold loan process and secure the best deal.

Mistakes to avoid while applying for a gold loan

Following are some common mistakes that you should avoid when applying for a gold loan to secure the maximum gold loan per gram.

1. Not ensuring lender transparency in gold valuation

Accurate valuation of gold is critical to the total loan amount availability. It is important to check if a lender ensures transparency during such valuation or not to maximise availability of the total financing value.

2. Under/ overestimating gold’s value

When checking the maximum loan availability, consider ensuring that you do not under or overestimate your gold jewellery’s value. Account for only the weight of pure gold in such ornament excluding any gemstone or other metal it may carry.

3. Choosing lender with a low LTV

Borrowers may end up choosing a lender who offers LTV at a much lower rate than the maximum availability in the market. This can lead to reduced loan amount availability. As per RBI norms, LTV of up to 75% is available on gold per gram.

Selecting the highest LTV thus improves your chances of maximising loan availability. Compare available lenders to determine you select the financial institution that falls in the highest slab of maximum and minimum gold loan availability.

Read More Read Less

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information.  Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

How much loan can you get for 1 gram of gold?

The amount you can get for 1 gram of gold depends on the current gold rates. To find out the latest prices and estimate your loan amount, check Bajaj Finance Gold Rate page. Stay informed for accurate details and make well-informed decisions on your gold loan.

What is the minimum time for a gold loan?

With Bajaj Finance, you can choose to pay the interest on a monthly, bi-monthly, quarterly, half-yearly, or annually basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.

How to calculate gold loan amount?

To calculate the maximum gold loan amount you can get against your gold jewellery, you can simply use our gold loan calculator.

What are the limitations of a gold loan?

While gold loans offer quick access to funds, there are some limitations. The loan amount is based on the gold's value, so the highest gold loan per gram depends on market rates. This means the maximum gold loan per gram can fluctuate, potentially limiting the funds you receive. Lenders also set a cap on the highest gold loan they offer, regardless of your gold's value. Additionally, if gold prices drop, the gold loan maximum amount per gram decreases, which can affect your borrowing capacity. Finally, failure to repay the loan can result in the loss of your pledged gold.

Importance of gold purity in gold loan limits?

The purity of gold is crucial in determining gold loan limits. Higher purity gold fetches a higher value, leading to the highest gold loan per gram. Consequently, lenders offer a higher maximum gold loan per gram for purer gold. For instance, 24-carat gold will receive the highest gold loan compared to 18-carat gold. The gold loan maximum amount per gram is directly proportional to the gold's purity. Therefore, ensuring your gold is of high purity can significantly increase the amount you can borrow against it.

What is the maximum value of a gold loan?

With Bajaj Finance, the maximum value a gold loan can go up to Rs. 2 crore.

Is there a minimum amount of gold required to get a loan?

With Bajaj Finance, the minimum amount of gold loan start from Rs. 5,000. The amount of gold required depends on the prevailing gold rates and the purity of your jewellery.

Show More Show Less