Bajaj Finance has highlighted how its online gold loan calculator can help borrowers plan more effectively before applying for a gold loan against eligible gold jewellery, ornaments, or coins.
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Bajaj Finance Gold Loan
A gold loan allows individuals to access funds for planned expenses or urgent financial needs without selling their gold. Before applying, understanding the likely interest cost and potential loan amount can help borrowers make a more informed decision. Bajaj Finance Gold Loan offers a free online calculator that estimates interest repayment based on the loan amount, tenure, and applicable interest rate.
Understanding how the loan amount is determined
The final loan amount is not decided by the total weight of gold alone. It depends on several factors, including gold purity, eligible net gold weight, the applicable gold price used for valuation, and the Loan-to-Value (LTV) limit set by the Reserve Bank of India (RBI).
In line with RBI norms, Bajaj Finance considers the lower of the previous day’s closing price or the 30-day average closing price, published by the Indian Bullion and Jewellers Association (IBJA) or a SEBI-regulated commodity exchange, for gold valuation. Only the eligible gold content is considered; stones, beads, and other non-gold materials are excluded from the assessed value. As per RBI guidelines, gold valuation is carried out in the presence of the borrower, ensuring complete transparency throughout the process.
Bajaj Finance accepts eligible gold jewellery and ornaments between 18 and 22 karat, and gold coins with purity of up to 24 karat, subject to applicable terms.
LTV limits vary by loan amount
As per RBI’s tiered LTV structure for consumption gold loans, the maximum LTV depends on the loan amount:
|
Loan amount |
Maximum LTV |
|---|---|
|
Up to Rs. 2.5 lakh |
85% |
|
More than Rs. 2.5 lakh to Rs. 5 lakh |
80% |
|
More than Rs. 5 lakh to Rs. 2 crore |
75% |
For instance, if eligible gold is valued at Rs. 2 lakh and an 85% LTV applies, the potential loan amount may be approximately Rs. 1.70 lakh, subject to final valuation and eligibility checks.
What is a gold loan calculator?
A Bajaj Finance Gold Loan Calculator is an online tool that helps borrowers estimate the loan amount they may be eligible for against their gold. Based on details such as the weight and purity of the pledged gold, the calculator provides an approximate loan amount, helping borrowers plan before applying for a gold loan.
How to use a gold loan calculator
Here are the simple steps to use the Bajaj Finance Gold Loan calculator:
Step 1: Enter the weight of the gold
The borrower enters the approximate weight of the gold jewellery, ornaments, or eligible gold coins they plan to pledge, measured in grams.
Step 2: Select the gold purity
The borrower selects the purity of the pledged gold, such as 18K to 22K gold jewellery and ornaments, or eligible gold coins up to 24K purity, as applicable.
Step 3: Enter the required loan details
Depending on the calculator, the borrower enters the expected loan amount or selects the preferred repayment tenure.
Step 4: Review the estimated loan amount
The calculator uses the details provided to display an estimated loan amount. This gives borrowers an initial idea of the amount they may be eligible to borrow against their gold.
Step 5: Complete the gold valuation
The calculator provides an estimate only. The lender determines the final loan amount after verifying the weight, purity, and eligibility of the pledged gold during the valuation process.
Why use the calculator first?
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It gives borrowers an early estimate of the amount they may be able to raise against their eligible gold.
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It helps them check whether the estimated amount is close to their intended borrowing requirement.
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It allows borrowers to see how changes in gold weight or purity can affect the estimated loan amount.
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It helps them decide how much gold they may need to pledge for their funding requirement.
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It gives borrowers a convenient way to plan their application before proceeding with the gold valuation.
Things to keep in mind
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The calculator uses the details entered by the borrower, so the estimate may differ from the final eligible loan amount.
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The valuation process verifies the actual weight and purity of the gold before determining the loan amount.
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Stones, gems and other non-gold components do not form part of the eligible gold value.
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The applicable LTV limit can affect the maximum amount offered against the assessed gold value.
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Borrowers should review the applicable interest rate, fees, repayment terms and other charges before proceeding with the loan.
Using the gold loan calculator before applying for a Bajaj Finance Gold Loan can help borrowers estimate their potential borrowing amount and plan their application accordingly. The final loan amount remains subject to gold valuation, eligibility and applicable terms.
T&C Apply.
About Bajaj Finance Ltd.
Bajaj Finance Ltd. (BFL), a subsidiary of Bajaj Finserv Ltd., is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL serves over 124.43 million customers through a diversified portfolio comprising consumer loans, SME finance, commercial lending, rural lending, fixed deposits and payments, offered through Web, App and at 4,000+ locations. As a FinAI company, BFL is focused on continuous innovation through smart use of technology, data and analytics to drive seamless, simplified and personalised experiences for its customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BBB/Stable and a short-term rating of A-2 by S&P Global Ratings. It has been assigned a ‘Baa3 Corporate Family Rating’ with a stable outlook from Moody’s Ratings.
For more information, visit www.bajajfinserv.in.
