What is the Impact of Gold Price on Your Gold Loan

What is the Impact of Gold Price on Your Gold Loan

Understand the relationship between your gold loan and the price of gold in the market. Check your gold loan eligibility today and get the best possible value for your gold jewellery.
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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 jewellery? If you own gold, 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 jewellery is valued higher too, which means you may be eligible for a larger loan amount.


With a Bajaj Finserv Gold Loan, the loan value is calculated based on the purity and weight of your gold jewellery and the prevailing gold rate. 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.


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 jewellery will have a higher price per gram compared to 22-karat gold jewellery.


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 current market 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 rate in BangaloreGold rate in MaduraiGold rate in Trichy
Gold rate in ChennaiGold rate in PuneGold rate in Vijayawada
Gold rate in KolkataGold rate in Andhra PradeshGold rate in Ludhiana
Gold rate in AhmedabadGold rate in SuratGold rate in Nellore
Gold rate in DelhiGold rate in AmritsarGold rate in Salem
Gold rate in HyderabadGold rate in CoimbatoreGold rate in Vellore
Gold rate in MumbaiGold rate in GunturGold rate in Goa


 

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Gold loan interest rates and charges

The gold loan interest rate represents the cost of borrowing money by pledging gold jewellery as security. With Bajaj Finance, gold loan interest rate ranges from 9.50% to 24% 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 jewellery’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 of 18-22 karat purity to pledge for a gold loan in Pune. 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.

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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.

How to apply for a gold loan in Pune?

In Pune, applying for a Bajaj Finserv Gold Loan is quick and convenient. Just visit the nearest branch with your gold jewellery 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 Finserv App or website. 

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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. *