What are the Eligibility Criteria for Obtaining a Gold Loan?

What are the Eligibility Criteria for Obtaining a Gold Loan?

Learn about th easy to meet eligibility paramerter for Bajaj Finserv Gold Loan. Check your gold loan eligibility today!
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Rs. 5,000 - Rs. 2 crore

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Key things to know before applying for a Bajaj Finserv Gold Loan 

Ever thought your gold could do more than just sit safely in a locker? Pledging your gold jewellery, ornaments or coins lets you get instant funds without giving up ownership of something valuable to you. Whether you are facing a medical emergency, planning higher education, or managing a big expense, a gold loan can step in right when you need it.

Since the loan amount is based on the value of your gold, it works well even if your credit history is limited. Being a secured loan, gold loan interest rates are usually lower than unsecured options. With Bajaj Finance, you can get a gold loan from Rs. 5,000 up to Rs. 2 crore, along with quick approval and minimal paperwork. All you need to do is meet the basic eligibility criteria. 


Eligibility criteria to get a gold loan

All salaried individuals, self-employed people, pensioners and homemakers can apply for this loan. You just have to be an Indian citizen aged between21 to 80 years. All you need is your pure gold, valued at 18-22 karat for jewellery and ornaments, or gold coins up to 24 karat purity, at your disposal. Apart from that, you just need any one of the following documents handy as your identity and address proof:

  • Aadhaar Card
  • Voter ID card
  • Passport
  • Driving licence
  • NREGA job card 
  • Letter from the National; Population Registration

However, if you apply for a loan above 5 lakh, you will need to submit your PAN card as well.

Planning to use your gold for quick funds? Check your gold loan eligibility now and see how much you can borrow instantly.

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Gold loan interest rates and charges

The gold loan interest rate represents the cost of borrowing against your gold. With Bajaj Finance, gold loan interest rate starts at just 9.50% to 24% per annum. You can stay assured of zero hidden charges with our 100% transparent terms and conditions. Know all about our fees and charges before applying.

A gold loan can be a valuable financial tool in times of need. However, it is essential to consider certain factors that can impact your borrowing experience.

  • Market conditions: Fluctuations in market demand can impact interest rates as well as the value of the gold loan per gram.
  • Gold rates: The market rate of gold also affects the interest rates on gold loans, as they directly impact the value of the gold jewellery offered as collateral.
  • Repayment frequency: The frequency of the interest payments on your gold loan also impacts the interest rate.
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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

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Eligibility criteria and documents required to apply for gold loan

Any Indian citizen can easily apply for a gold loan for home repair, education, medical emergencies, and more, as long as they meet the gold loan eligibility criteria. You have to be aged between 21 and 80 years and have 18-22 karat gold jewellery or ornaments to pledge for a gold loan. You can also pledge gold coins up to 24 karat karat gold purity. Bajaj Finance considers 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 evaluate the loan amount against your gold jewellery, ornament or coin.

The loan-to-value (LTV) ratio for gold loans in Palakkad is set as prescribed by the Reserve Bank of India. Bajaj Finance adheres to the guidelines set by RBI and offers the same LTV ratio while handing out loans. Here is a LTV break down:

1. For loans up to Rs. 2.5 lakh = LTV 75%

2. For loans between more than Rs. 2.5 lakh to Rs. 5 lakh = LTV 80%

3. For loans from more than Rs. 5 lakh up to Rs. 2 crore = 85%

Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.

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How to apply for a gold loan?

We our hassle-free application and quick approval process, you can apply for a gold loan online in a few simple steps. We will set up an appointment and keep everything ready by the time you visit your nearest gold loan branch.

Once you have an idea about your eligibility, you can also apply for the gold loan on our website itself. Follow these simple steps to apply for a gold loan:

Step 1: Visit the gold loan section on the website.

Step 2: Click on the ‘APPLY’ button.

Step 3: Enter your 10-digit mobile number and click on “Get OTP”

Step 4: Submit the OTP to verify your identity

Step 5: Fill in your personal details and choose the nearest gold loan branch

Step 6: Download the in-principal loan eligibility letter

Once done, you will receive a call from our representative and guide you on the next steps.

Additionally, it is important to note that currently we do not accept gold bars, mixed metals, utensils, etc. as collateral against gold loans.

Discover your borrowing potential by checking your gold loan eligibility. It takes just a few clicks and no waiting.


 

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Disclaimer

Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *