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How gold prices influence the value of your gold loan
Have you ever thought about how the changing price of gold affects the value of your gold? If you own gold jewellery, ornaments or coins, its market price directly decides how much loan you can get against it. Gold rates move up and down due to global economic conditions, inflation, currency changes, and geopolitical events. When gold prices are high, your gold is valued higher too, which means you may be eligible for a larger loan amount.
With a Bajaj Finance Gold Loan, the loan value is calculated based on the purity and weight of your gold and the applicable gold rate. Bajaj Finance considers the 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.
To make planning easier, you can use the online gold loan calculator to estimate your loan amount in advance. This helps you borrow confidently and make informed financial decisions.
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.
Price of gold jewellery per gram
The price of gold jewellery in India is influenced by numerous factors, such as international gold rates, import duties, taxes and local market demand. The price can vary from city to city and from one jeweller to another. Therefore, it's crucial to research and compare gold jewellery prices from reputable jewellers before making any transactions.
The price of gold jewellery per gram is an essential factor in determining the loan amount that you can secure against your gold jewellery. The purity of gold, measured in karats, impacts the price per gram. For instance, 24-karat gold is the purest form, containing 99.9% gold, while 22-karat gold consists of 91.6% gold and 8.4% other alloys. As a result, 24-karat gold will have a higher price per gram compared to 22-karat gold.
The price of gold plays a significant role in determining the loan amount that you can avail against your gold possessions. Higher gold prices may lead to a larger loan amount, while lower prices may result in a smaller loan. It is essential to stay updated on gold prices and find reputable jewellers to get the best value for your gold jewellery when considering a gold loan. Remember to understand the purity, weight, and gold prices to make informed decisions and make the most of your gold jewellery during a financial need.
Here's a list of gold rates across different cities
Gold loan interest rates and charges
The gold loan interest rate represents the cost of borrowing money by pledging gold jewellery, ornaments, or coins as security. With Bajaj Finance, gold loan interest rate ranges from 9.50% to 24.25% per annum, with complete transparency and no hidden charges. Borrowers are encouraged to review all applicable fees and charges before applying, so there are no surprises later.
Several factors can influence the overall cost of a gold loan. Market conditions may affect interest rates and the gold loan value per gram. Changes in gold prices also impact the loan amount, as the gold's value forms the basis of the loan. Additionally, the repayment frequency chosen can influence the total interest payable over the loan period.
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Eligibility criteria and documents required to apply for gold loans
Any Indian citizen can apply for a gold loan to cover needs such as home repairs, education costs, medical emergencies, and other personal requirements, as long as the gold loan eligibility criteria are met. The applicant should be between 21 and 80 years of age and must own gold jewellery or ornaments between 18-22 karat purity to pledge for a gold loan. You can also pledge gold coins up to 24 karat purity. To complete the application, submitting any one of the approved KYC documents for gold loan is required, ensuring a smooth and hassle-free process.
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by National Population Registration
Though the PAN card is not a mandatory requirement, if you apply for a gold loan of Rs. 5 lakh or above you will be asked to submit your PAN card as well.
Curious about your loan eligibility? Enter your mobile number to see how much you can get for your gold.
How to apply for a gold loan in Pune?
In Pune, applying for a Bajaj Finance Gold Loan is quick and convenient. Just visit the nearest branch with your gold assets and valid KYC documents. The team will check the purity and weight of your gold, calculate your eligible loan amount, and process it on the spot. Most of the time, the loan amount is disbursed to your account on the same day, so you can walk out with funds ready when you need them. For added convenience, you can also apply online, vis the Bajaj Finance App or website.
Frequently asked question
Gold Price
Fluctuations in gold prices directly influence your gold loan value. As the gold price changes, so does the collateral's worth, affecting the loan amount. It's essential to monitor the gold rate to understand these variations and make informed decisions about your gold loan, ensuring financial stability.
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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. *