Gold Loan eligibility

Gold Loans offer attractive interest rates as these are secured loans. Gold Loan disbursement is quick, often done within a day with affordable interest rate. Other benefits include minimal documentation, no restrictions on how you plan to use the funds and flexible repayment options to suit your pocket. All you have to do is just meet the basic Gold Loan eligibility criteria.

Axis Bank Gold Loan offers loan amounts ranging from ₹25,001 to ₹40,00,000 at very competitive interest rates. Check the Gold Loan calculator now to understand your monthly repayment schedule!

Main factors to consider for Gold Loan eligibility

Your Gold Loan eligibility is defined by the checks mentioned below. You need to fulfil these to get your Gold Loan approved quickly -

Ownership of Gold: The primary requirement for Gold Loan eligibility is the possession of physical gold. They can be in the form of jewellery / ornaments with at least 18-carat purity or pure gold coins issued by a bank. Every bank has minimum weight criteria for the gold as well. A gold valuer is appointed by the banks to check the purity of the gold jewellery that you will pledge with the bank as collateral.

Age criteria: Age is one of the major Gold Loan eligibility criteria. You should be a resident Indian with a minimum age of 18 years. A minor (one below the age of 18 years) is not eligible for a Gold Loan. The maximum age limit is 75 years, as per the bank policy.

Identity and address verification: You need to provide valid identity and address proof to your bank to be eligible for a Gold Loan. The KYC check can be done by submitting documents such as PAN, Aadhaar, voter ID, passport etc. as well as your recent photographs. No other document is needed to be eligible for a Gold Loan.

Loan amount determination: The loan amount depends on the value of your pledged gold. Banks appoint a gold valuer to evaluate the purity and weight. Based on the gold's prevalent market rate and the net weight, the value of your gold is calculated. The banks then calculate the Loan-to-Value or LTV ratio, which gives you the loan amount as a percentage of the gold market value. As per RBI guidelines, banks can lend up to 75% of the gold value.

Credit history consideration: A key advantage of Gold Loans is their reliance on collateral, which is your gold asset. Hence, it makes your credit history less significant. Gold Loan is possible gold assets to pledge. Gold Loan eligibility and interest rates remain unaffected by your credit history in such cases.

Repayment capacity evaluation: To assess your repayment capacity, the lenders scrutinise your income and expenditure. Providing documentation like salary slips, bank statements, and income tax returns is essential to verify your income.

Loan tenure and its impact: Gold Loans are generally for your short-term needs, thus, they typically have repayment periods spanning from a 6 months to 3 years. You must ensure timely repayment within the specified period to avoid penalties or potential loss of your pledged gold.