What is the minimum weight needed for a Gold Loan?

When should you consider a gold loan

If you need quick cash without the hassle, a gold loan is a smart move. You pledge your gold jewellery, and based on its weight and purity, you get instant funds. It is perfect for emergencies, education expenses, home repairs, or bridging temporary cash gaps. With fast approval, minimal paperwork, and flexible repayment options, it is one of the easiest ways to access money.

A common question is, “How much gold do I need?” Most lenders, including Bajaj Finserv, let you apply with as little as 1 gram of gold, though the exact loan amount depends on your jewellery’s value and purity. Knowing this upfront helps you plan your loan better.

Want to see how it all works, explore the benefits, or check your gold’s eligibility? Keep reading to get the full picture and make the most of your gold.

Quick disbursal

You can benefit from the quick disbursal of funds offered by gold loans, making them an ideal choice for unexpected financial emergencies. By pledging your gold assets as collateral, lenders can swiftly approve and disburse funds based on the market value of your gold.

As per RBI guidelines, lenders typically offer up to 75% of the gold's value, which is calculated based on the gold loan per gram rate. With Bajaj Finance, you can obtain a gold loan in just one branch visit*. You can also use the Bajaj Finance Online Gold Loan Calculator to determine the loan amount you are eligible for.

Attractive interest rates

Due to the secured nature of gold loans, the interest rates offered are generally lower than those of unsecured loans like personal loans. Bajaj Finance offers gold loan interest rates starting at just 9.50% to 24% per annum.

No credit score dependency

One of the major advantages of instant gold loans is that they do not rely on your CIBIL Score. Regardless of whether you have no credit history or a low credit score, you can easily obtain these loans based on the value of your gold jewellery.

What is the minimum weight required for a gold loan?

The minimum weight required for a gold loan varies among lenders. However, in general, most lenders set a minimum weight threshold of around 1 gram for gold loans. This means that you can avail a gold loan by pledging gold jewellery or ornaments weighing at least 1 gram.

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

What kind of gold can be pledged as collateral?

In India, most financial institutions accept gold jewellery as collateral for gold loans. Gold coins, bars, or bullion are generally not accepted by most lenders. When pledging your gold ornaments, ensure that they meet the minimum purity criteria set by the lenders. Typically, lenders approve loans only on gold jewellery with a purity ranging from 18-22 karats. Also, if ornaments contain precious gems, they will not be considered when determining the loan value. The loan amount will be determined solely based on the weight and purity of the gold.

What is the minimum purity required for a gold loan?

When applying for a gold loan, one of the most important factors to consider is the purity of your gold. The minimum purity required for a gold loan typically starts from 18 karats, although most lenders prefer gold ranging from 18-22 karat purity for better loan value. Gold of lower purity may not be accepted, or the loan amount offered will be significantly lower.

Understanding how much gold is required for a gold loan helps you plan better. Most lenders require at least 1 gram of gold, but the actual minimum gold for gold loan approval may vary depending on the lender’s policy and the market value of gold on that day.

Here are some key points to remember:

• Minimum purity: Generally, 18-22 karat gold is the minimum purity acceptable for loan.
• Accepted form: Only gold jewellery is accepted—coins and bars are usually not eligible.
• Loan value: The purer the gold, the higher the loan amount you may receive.
• Evaluation method: Lenders assess the weight and purity using advanced tools before approving the loan.

Before applying, it is advisable to check with your lender about the minimum gold loan eligibility and requirements. You can also use our online gold loan calculator to get the estimates.

Factors influencing gold loan amount

Here are the key factors affecting gold loan amount:

1. Gold quality: The purity and quality of the gold jewellery or assets pledged significantly influence the loan amount. Higher purity gold typically fetches a higher loan amount.
2. Gold weight: The weight of the gold jewellery or assets pledged directly affects the loan amount. Generally, higher gold weight translates to a higher loan amount.
3. Current market value: The prevailing market price of gold determines the loan amount. Fluctuations in gold prices directly impact the loan amount, with higher gold prices resulting in higher loan amounts.
4. Loan-to-value ratio: Typically you can get a loan amount based on a percentage of your gold's value, known as the loan-to-value (LTV) ratio. Higher LTV ratios result in higher loan amounts. As per RBI guidelines, you can get up to 75% of your gold’s value as loan against your gold jewellery.

Ready to unlock the value of your gold? Apply for Bajaj Finserv Gold Loan today.