A gold loan lets you borrow money by pledging eligible gold jewellery, ornaments or coins without selling them. Before applying, it helps to know who is eligible, which documents are required and how the application process works. Understanding these steps can help you prepare for the gold evaluation and choose a loan amount that suits your needs.
Who is eligible to apply for a gold loan?
Your eligibility for a gold loan depends on the lender’s requirements and the gold you plan to pledge. Before starting the gold loan apply process, make sure you meet the following basic eligibility criteria:
- Nationality:You must be an Indian citizen.
- Age:You must be between 21 and 80 years old.
- Gold purity:Your jewellery or ornaments should generally be between 18K and 22K purity. Gold coins of up to 24K purity may also be accepted, subject to applicable limits.
- Ownership:You should have eligible gold that can be pledged as collateral.
Whether you are salaried, self-employed, or a pensioner, you can apply if you meet the applicable eligibility requirements.
Which documents do you need to apply?
Keeping your KYC documents ready can help you complete the application and verification process smoothly. You need to submit any one of the following officially valid documents:
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by the National Population Register
If you apply for a gold loan of Rs. 5 lakh or above with Bajaj Finance, you must also submit your PAN card. The lender may ask for additional documents or information to complete the verification process.
How can you check your gold loan eligibility?
Before applying, you can use a gold loan eligibility calculator to estimate how much you may be able to borrow against your gold. The estimate generally depends on the gold’s purity, net weight, applicable gold valuation and the lender’s terms.
For example, if your eligible gold has an assessed value of Rs. 1 lakh and the applicable maximum LTV limit is 85%, the indicative loan amount would be:
Rs. 1,00,000 × 85% = Rs. 85,000
This is an illustration, not a confirmed loan offer. Your actual eligibility may vary after the lender evaluates your gold and applies the relevant lending limits. Bajaj Finance offers gold loans from Rs. 5,000 to Rs. 2 crore, subject to eligibility, gold valuation and LTV limits. Before you apply, use the gold loan calculator to plan your borrowing requirement.
What are the steps to apply for a gold loan?
You can begin your application online through the Bajaj Finance website or app. Follow these steps:
- Start your application:Visit the Bajaj Finance Gold Loan page and select the ‘APPLY NOW’ button.
- Enter your details:Provide your 10-digit mobile number and verify it using the OTP received.
- Share personal information:Enter your details as requested in the application form.
- Select a branch:Choose the nearest Bajaj Finance Gold Loan branch for the gold evaluation.
- Download your eligibility letter:Once you submit the details, you can download your in-principle loan eligibility letter.
How is your gold evaluated at the branch?
During the branch visit, your gold’s purity and gross and net weight are assessed. You should be present during this evaluation. Under the RBI’s Gold and Silver Collateral Directions, 2025, the reference price used must be the lower of the preceding 30-day average closing price or the previous day’s closing price for the same purity. This price must be published by the India Bullion and Jewellers Association (IBJA) or a commodity exchange regulated by the Securities and Exchange Board of India (SEBI). Only the intrinsic value of the gold is considered, so stones, gems and other embellishments are excluded. Once the evaluation and applicable verification checks are complete, the lender communicates the final loan offer. Disbursal follows approval and completion of the required formalities.
Before accepting the loan, check the total borrowing cost, applicable charges and repayment schedule. Make sure the repayment terms suit your financial situation, as timely repayment is essential to recover your pledged gold.
