Self-employed or salaried individuals can avail loan against gold from different banks in India. The approval of the loan is fast and it is a very good option of finance when you are in need of money. At loanbaba.com, you can apply for Gold Loans online and receive instant funds within 45 minutes or the same day of loan application approval. You have to submit the gold ornaments you own as collateral to the financial institution, against which a loan amount will be sanctioned. The gold valuation will be done by a professional at the bank/NBFC. By using online Gold Loans calculator for eligibility at loanbaba, you can understand if you are eligible for the loan or not or which conditions will favour your eligibility for the loan.
You can avail this free-to-use tool and calculate your loan against gold eligibility across banks and NBFCs. As the starting rate for Gold Loans is as low as 10.5%, you can be sure to save the most on this secured loan. You can also use Gold Loans EMI calculator to calculate the EMI to be paid towards the loan. The EMI calculator tells about the monthly instalment to be paid (both interest component and principal component). However, the loanbaba Gold Loans does not necessitate payment of principal component during the loan tenure. You only have to pay the interest amount per month and pay the original loan amount at end of the tenure.
Below mentioned is the loan against gold eligibility criteria:
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Age |
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Amount of the Loan |
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Type of Employment |
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Gold Quality |
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CIBIL Score for Gold Loans |
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Ornaments of gold which are used to avail the loan |
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Proofs of income and track record of Employment |
The Banks do not check applicant’s salary slips while sanctioning the Gold Loans. This loan is approved without any income proof. The applicant only have to submit the basic ‘Know your Customer’ documents like identity proof, address proof and Aadhaar card to be eligible to avail the loan. |
The eligibility criteria for loan against gold are flexible in a way that there is no age restriction, just that you have to be more than 18 years of age. However, even at a young age, you must have good repayment capacity. In case you are unable to repay the loan, the gold jewellery submitted as collateral will not be returned by the bank. At our website you can accessing leading bank and NBFC loan calculator such as SBI Gold Loans calculator, HDFC Gold Loans calculator etc.
Keep the following documents for Gold Loans to get your loan application processed quickly.
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Type of Documents |
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Proof of Identity |
Voter’s ID / Passport / Aadhar Card PAN Card copy |
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Photographs |
Two ( passport size) |
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Proof of Address |
Aadhar Card, Rent agreement, Driving License, Voter’s ID Passport, Utility bills |
If you have a good relationship with a bank or NBFC providing loan against gold, you can negotiate for better Gold Loans interest rates. Though your credit score does not matter much for these loans, maintaining a clean repayment record does add on to the trust factor for the lender.
You can improve your eligibility for Gold Loans by providing gold ornaments that meet the eligibility standard for the precious metal. The banks measure the eligibility for Gold Loans on the basis of the factors such as pledged gold's value that depends on the current price of gold, gold's purity and applied LTV etc. The gold price is considered as past thirty days 22 carat gold's average price.
For example-
Rohan possess hundred grams of jewellery made of gold. He will compare all the loan options available by different banks keeping in mind the factors like tenure, loan amount and interest rates etc. Bank X makes an estimation of the gold jewellery at twenty-two carat with the net weight of seventy-five gram after it deducts stones and gems weight. The lender then applies LTV ratio of seventy percent and provides the loan at 10.5% Interest rate.
Bank Y makes an estimation of the gold jewellery at twenty-two carat with the net weight of ninety gram after it deducts stones and gems weight. The lender then applies LTV ratio of seventy-five percent and provides the loan at 26% Interest rate.
Comparison of both Gold Loanss-
Bank X and bank Y has considered gold's average price of last thirty days to have an estimation of gold's value. The average rate of gold each ten gram is 30,600 rupees.
The choice of the bank will depend on the amount of the loan. In case the amount of the loan Rohan is eligible for availing from Bank X, is better for meeting his needs, he can go for lower EMI and interest. But, in case he needs higher amount of the loan, he may go for Bank Y, even the EMI and interest rate is high.
The Gold Loans eligibility calculator helps in getting the approximate loan amount you are eligible to borrow from the bank or NBFC based on your personal/employment/income details and that of the co-applicant. The calculator takes into account few basic details and calculates the amount you can borrow from the bank and NBFC. The reason why you must use the eligibility factor is to have a clear understanding of how much amount you can borrow.
Applying for an amount more than you are eligible for will have your loan application rejected. Thus, it will be waste of time and resources, plus you will have no idea about the accurate amount for which you can apply for. Once you use the Gold Loans eligibility calculator, you can enter details about your income, liabilities, and other to know if you are even eligible for the minimum borrowing amount or not. You can adjust the details in the calculator and know the right balance of things you require to qualify for the loan.
Below mentioned are the ways you can use the loan eligibility calculator on our website:
Below mentioned are important questions for Gold Loans at loanbaba.com
Yes. If the lender feels that your existing financial liabilities will affect your Gold Loans repayment capacity then your loan application may be rejected. Though the loan against gold is easier, since it is a secured loan and interest rate is as low as 10.5%, your financial obligations will be reviewed.
Factors like gold rate of on that date, purity of gold which is used for making the ornament etc. affects the amount of the loan which is approved against the gold jewellery that is pledged with bank.
When you take a Gold Loans from bank or NBFC, the financial institution will offer free triple layered security for the gold ornaments. You just have to repay the interest component on the loan until the end of the tenure, after which you have to pay the principal amount, and not before. The flexible repayment tenure is one of the best benefits, beside minimal documents and fast disbursal.
You may visit any branch for making cash payment or you can make payment online by using the web portal of the bank. Credit card, Debit card and DD payment of Gold Loans are limited option. Contact your bank for any other query for the loan.
