Gold Loan Eligibility Criteria and Documents Required to Get Gold Loan Online in India

A gold loan can be a one-stop solution for emergencies. Applying for it involves a straightforward process as it is a secured loan. All you have to do is pledge the gold as security for getting a loan amount of up to 75% of your gold’s current market value.

On Bajaj Markets, you can explore gold loan options from a wide range of lenders. Apply online by submitting minimal documents, and get a loan at attractive interest rates starting from 8.88%. 

Before applying, checking the gold loan eligibility criteria is essential to plan your application and ensure quick access to the required funds.

To apply for a loan via Bajaj Markets, ensure you meet the following gold loan eligibility criteria:

• The minimum age required to apply for a gold loan is 18 years

• You must be an Indian citizen

• You must be a self-employed, salaried employee, an entrepreneur, farmer, or trader

• The purity of the gold assets must be at least 18 karats

This free online tool will help simplify planning. The gold loan eligibility calculator helps you instantly calculate the funds you can borrow against your gold asset. You can use it based on the following parameters:

• Total weight of gold assets

• Purity in karats

• Loan amount you wish to borrow

To calculate gold loan eligibility, a percentage of the gold value is considered based on the total weight of the gold articles. This determines the valuation according to its purity and the current market rate. 

The issuer sanctions the loan as a percentage of this total gold value, establishing the gold loan eligibility per gram.

Here are the documents required for a gold loan when applying on Bajaj Markets:

Identity Proof 

Any one of the following:

• Aadhaar card

• Voter ID

• Driving licence

• Passport copy

Address Proof

Any one of the following:

• Aadhaar card

• Utility bills

• Driving licence

• Passport copy

Once you meet the eligibility criteria, you can submit the required documents for a gold loan after the application is approved.

In addition, you can also forecast your monthly instalments by using the gold loan EMI calculator on Bajaj Markets. It helps you plan your finances better and choose the right loan terms.

Evaluating the value of your gold requires knowing the current market price and gold’s purity in karats. Here are some parameters take are taken into consideration:

• Karat is the unit for measuring gold purity, represented by the symbol K. In India, gold items such as coins, jewellery, and bars are assessed on a karat scale from 0 to 24.

• Gold valuation for loans is based on the prevailing market price. Since gold prices fluctuate, a higher rate allows borrowers to obtain a higher loan value.

• The gold rate depends on purity. The purest form, 24-karat gold, contains 99.9% gold and has the highest value.

• Interest rates influence gold loan valuation, similar to other loan types. Factors such as the repo and reverse repo rates affect gold prices, impacting the market rate.

To determine the gold loan value, lenders follow specific valuation methods such as weight measurement and hallmark verification. These methods are detailed below:

• The lender first examines the gold assets for authenticity and any damage. They also check for hallmark markings.

• Once the initial assessment is complete, the weight is measured in grams using precise scales.

• To determine the exact purity of the gold, the lender applies evaluation methods such as acid tests or X-ray fluorescence testing.

• A hallmark, if present, is verified using authorised verification methods.

• Pure gold is valued based on the current gold price per gram.

• Depending on the gold’s purity, the loan value is adjusted by assessing the Loan-to-Value (LTV) ratio. A 75% LTV ratio applies to a gold loan, meaning up to 75% of the total gold value is provided to the borrower.

To apply for a gold loan online on Bajaj Markets, the process requires minimal documentation. Here is how you can proceed:

1. Select the gold loan option

2. Click on the ‘Check Eligibility’ tab on the page

3. Enter the required loan amount along with your basic details

4. Click ‘Submit’

5. An executive will review your application and contact you for further processing

Gold loans are secured loans borrowed against collateral and provide more flexible repayment options. With a gold loan, you can select a flexible repayment plan and EMI instalment amount. 

Online gold loan options allow you to foreclose the loan before the tenure ends or partially prepay the loan. To avoid any penalties, review the terms and conditions provided by the lender. 

With a gold loan taken via Bajaj Markets, you have the option to repay monthly, bi-monthly, quarterly, or annually as per your convenience. Foreclosure is also possible without additional charges.

To get a gold loan in India, several key factors determine your eligibility, including the current gold rate, per gram value, and purity.

• Your age, income, and nationality are primary factors in assessing gold loan eligibility. You need to be over 18 years old and an Indian citizen. Additionally, you have to demonstrate a stable income, whether you are self-employed or salaried.

• The total weight of the gold plays a crucial role in determining eligibility. It affects the per-gram valuation, which helps assess the loan amount.

• Gold purity is another important criterion. Most lenders accept gold of 18 karats or higher for a gold loan.

• The current market gold rate significantly influences the loan amount. A higher gold rate allows you to borrow a larger sum.

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