What Are the Gold Loan Eligibility Criteria?
23 Nov 2022
Table of Content
Data revealed by the World Gold Council showed that Indian gold consumption increased by 78% in 2021 to 797.3 tonnes. In India, gold’s financial value is accompanied by a deep sentimental connection as Indians purchase gold on numerous auspicious occasions.
According to the World Gold Council, India is the second largest consumer of gold, and Indians hold more than 25,000 tonnes of gold. With gold prices spiraling upwards, gold as a collateral asset against loans has become very attractive. Firms after firms are offering lucrative gold loans, often seen as a productive way to use the yellow metal’s perennial financial prowess. But can you use any gold lying in your locker to obtain loans just like that? Are there any other eligibility criteria for securing gold loans? Continue reading to learn more.
Gold Loan Eligibility Criteria
A gold loan can be a lifesaver in times of crisis. But to avail of a loan against gold, one must meet the standard eligibility criteria most lenders follow. The gold loan eligibility criteria are given below:
- The age limit for applying for gold loans starts at 18 years old. Gold loans are given up to the applicant's age of 70.
- A salaried or self-employed business owner or farmer can apply for a gold loan. So can a business owner, entrepreneur, student, homemaker and pension-holder.
- The quality of gold kept as security can be either 18-22 karats or 24 carats if it is a gold coin (up to 50 Gms per borrower) only gold jewellery is accepted by most organisations for a loan.
What Amount of Gold Loan Is Available
The maximum gold loan eligibility is based on the loan-to-value ratio of a gold loan. This means that gold loans are sanctioned up to a maximum of 75% of the value of the gold. You can apply for a maximum gold loan up to Rs 25 lakhs per borrower at the Bank of Baroda. The maximum tenure is 12 months and 36 months for an EMI option. Please visit the Bank of Baroda to know more about the gold loan interest rates and charges.
How to Check your Eligibility for the Gold Loan
You must meet the age and occupation criteria and the quality or purity of the gold you intend to pledge to the bank or the financial institution to meet the eligibility requirements. Bank of Baroda provides gold loans who are Indian citizens at a concessional interest rate. For more details, visit Bank of Baroda. You can fill up an online form (digital gold loan) or request a callback at tel at : 1800 5700 / Give a missed call to -8467001144
How to Calculate Gold Loan
The process of calculating the amount of gold loan is hassle-free and straightforward. All you need to ensure is that you have sufficient gold jewellery or other assets in gold, like coins, etc., to be pledged to secure the gold loan. You also need to know the weight of the gold, the purity calculated in the form of karats, the tenure of the loan etc.
The gold loan calculator shows the loan tenure for which you want to borrow the loan and the number of ornaments you wish to pledge. Then, you input the number of karats of jewellery or gold into the calculator and the total weight in grams.
The calculator calculates the output in the form of the amount of loan that can be sanctioned in rupees based on the above input.
What is the Maximum Age to Apply for a Gold Loan?
The maximum age to apply for a gold loan is 70 years. This maximum age limit may vary from institution to institution.
Gold is a high-value, accessible asset to pledge and borrow gold loans against. Gold loans give us high loan-to-value payments. They also offer flexible repayment options; the gold can be reused for repeated pledging and used to obtain financial liquidity with minimum documentation when in financial distress. You must also remember that if you default on the gold loan payments, you risk losing your gold jewellery as it may be auctioned to enable the bank or financial institution to recover its loan capital.
Clearing up Space Debris
Pay your Bank of Baroda Loan EMIs via bob World app
What's the Difference Between a Gold Loan and a Loan Against Property?
What is a Term Deposits - A Complete Guide
Technology for a Greener tomorrow
Digital Banking a Complete Guide
23rd - 27th May, 2022
5 Steps to Apply for a Home Loan
Different Types of Loans for Your Home
Complete Guide on Bank of Baroda B3 Account
How to Save & Invest for Your Child's Education Aboard
Important Education Loan: Student Loan Terms You Should Know
Understanding CIBIL Score Requirements for Education Loans
How to Reduce Your Student Loan Debt
Understanding Personal Loan Part Prepayment and Closure
How to Get a Loan to Buy Agricultural Land
Guide to Getting Agriculture Loan: Application, Eligibility & Required Documents
Applying for Loan Against Agricultural Land: A Step-by-Step Guide
Types of Agriculture Loans and Financing Options
Does a Co-Applicant's Income Improve Your Chances of Getting a Higher Home Loan Amount?
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
Repayment of Gold Loan: Everything You Need to Know
Gold loans have always been one of the popular ways to borrow funds due to ease in the process, less documentation, rapid availability of funding, and a variety of repayment options. Between personal loan and gold loan, a personal loan takes days or even weeks to avail, whereas a gold loan can be approved within hours as borrowers keep a sufficient quantity of gold as collateral against the loan amount. Moreover, gold loans' interest rate is lower than personal loans. Owning physical gold can act as an investment or a backup during an unexpected financial crisis. Banks and financial institutions offer different gold loan repayment methods. From regular EMIs to bullet repayments, borrowers can repay gold loans as per their suitability and financial situation. Below is detailed information regarding various aspects of gold loan repayment, including process, period, and best ways to repay.
Documents Required for Education Loan
Every national and international bank offers education loan to students at low-interest rates to help them to pay for their higher education costs. It is a kind of advance financial aid given to students to study in institutes in India and abroad. Banks offer educational loans with flexible terms and conditions to qualified applicants. Furthermore, the documentation process is maintained and the submission of documents required for education loan is one of the important steps involved in availing of an education loan.