Who Can Apply for a Gold Loan and What the Eligibility Criteria Are

As gold loans continue to gain traction across India as a preferred short-term credit option, Bajaj Finance is making it easier than ever for eligible borrowers to understand who qualifies, what documents are needed, and how the rate of interest against gold loan is determined — before they even step into a branch.

Bajaj Finance Gold Loan

A loan product built for accessibility
One of the defining features of a gold loan is how inclusive it is. Unlike personal loans or business loans that require income proof, a strong credit score, or extensive documentation, a gold loan is secured entirely against the value of the borrower's gold. This makes it accessible to a wide cross-section of Indians — salaried employees, self-employed professionals, and pensioners alike.

With Bajaj Finance, eligible borrowers can access loan amounts ranging from ₹5,000 to ₹2 crore, with funds disbursed on the same day in most cases*.

Gold loan eligibility criteria
The gold loan eligibility criteria set by Bajaj Finance are deliberately straightforward. To qualify, a borrower must be an Indian citizen between the ages of 21 and 80. The gold jewellery or ornaments being pledged must be between 18 and 22 karats in purity. Gold coins of up to 24 karats are also accepted — making this one of the most accessible secured loan products available in the Indian market today.

It is worth noting that jewellery with heavy stonework or enamel detailing is valued only on its actual gold content. Borrowers are advised to keep this in mind when estimating their eligible loan amount.

Documents required
The documentation process is minimal by design. Borrowers are required to submit just one valid KYC document, which may be any of the following — an Aadhaar card, Voter ID, passport, driving licence, NREGA job card, or a letter from the National Population Registeration.

Rate of interest against gold loan
The rate of interest against gold loan at Bajaj Finance starts from just 9.50% per annum. The applicable rate is influenced by factors such as the loan amount, chosen tenure, and the purity of the gold being pledged. Bajaj Finance evaluates gold using the lower of the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange — ensuring a fair and stable valuation for the borrower.

Repayment is flexible, with borrowers able to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis. The principal is settled at the end of the tenure. Foreclosure is permitted at no additional charge, giving borrowers the freedom to close the loan early if their finances allow.

How to apply
Borrowers can apply for a Bajaj Finance Gold Loan online through the website or app, or by visiting their nearest branch. The online process involves entering a mobile number, verifying with an OTP, filling in personal details, selecting the nearest branch, and downloading an in-principal eligibility letter. Physical assessment of the gold takes place at the branch, following which funds are typically credited on the same day.

T&C Apply.

About Bajaj Finance Limited
Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), 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 is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 69.14 million 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 BB+/Positive and a short-term rating of B by S&P Global ratings.

For more information, visit www.bajajfinserv.in