Gold Loan Eligibility

The eligibility criteria for a loan against gold may vary depending on the category of the borrower. For example, salaried persons may have different gold loan eligibility criteria than self-employed individuals and agriculturists. Lenders usually consider the weight and purity of the gold to be pledged when determining the borrower’s eligibility for the loan. The gold loan eligibility criteria of different lenders are explained below in detail.

Following are the eligibility criteria of top gold loan providers in India:

1. Axis Bank Gold Loan Eligibility Criteria

• Applicant should be aged between 18 to 75 years to be eligible for Axis Bank Gold Loan. 
• The loan is offered against the pledge of gold ornaments and gold coins. 
• The maximum loan limit against gold coins is 50 gm per customer. 

2. Bajaj Finserv Gold Loan Eligibility Criteria

• The applicant should be aged between 21 to 70 years to meet Bajaj gold loan eligibility.
• The applicant should be a salaried person, self-employed, business person, trader, farmer or may belong to any other profession. 
• The applicant must provide the required KYC documents to prove their identity and residence.
• The applicant must provide relevant income proof documents if required to establish their repayment capacity.
• The lender accepts gold jewellery of 22 carat to provide a gold loan after measuring the weight.

3. Bank of Baroda Gold Loan Eligibility Criteria 

• Indian residents can apply for a gold loan with the Bank of Baroda.
• Applicants must be the owner of the gold ornaments, jewellery and specially minted gold coins that are sold by the banks (up to a maximum of 50 grams per borrower).
• The Bank of Baroda gold loan can be obtained with a minimum of 18-carat gold jewellery/ornaments.

4. Bank of India Gold Loan Eligibility Criteria

• Any individual or proprietorship firm can avail of this loan if they are a lawful owner of gold jewellery, ornaments or coins. A 
• The bank offers finance to proprietorship firms for business purposes only.
• Security by pledging the gold jewellery, ornaments or coins owned by the borrower will be required. 
• Gold coins should not be more than 50 grams in weight.
• You can use the gold loan calculator to know your eligibility for the Bank of India gold loan.

5. Canara Bank Gold Loan Eligibility Criteria

• These loans can be obtained from designated branches only.
• Canara Bank gold loans are available only to the existing savings account holders of the bank. 
• You can open a savings bank account with the bank if you do not have one already and then avail loan under this scheme.
• The applicant must be an Indian resident with a stable and regular source of income. 
• New customers must prove their creditworthiness when applying for a loan. It will help them in getting competitive gold loan interest rate. 
• The applicant should be at least 18 years of age when applying for the loan. 
• The loan can be availed against the mortgage of gold ornaments/ jewellery and specially minted gold coins (not exceeding 50 grams per customer) that are sold by banks.

6. Federal Bank Gold Loan Eligibility Criteria

• To meet the Federal Bank gold loan eligibility criteria, applicants should be aged above 18 years and should have gold that is to be pledged with the bank. 
• Existing customers need not submit any extra documents required for gold loan.
• New applicants must submit the following documents:
  • Recent Passport size photograph
  • Identity proof like Passport/ Aadhar Card/ Voter ID Card/ Driving License/ PAN Card.
  • Address proof like Aadhar Card/ Ration Card/ Electricity Bill/ Telephone Bill/ Lease Agreement/ Passport/ Sales Tax Certificate/ Trade License.

7. ICICI Bank Gold Loan Eligibility Criteria

• Any individual in the age group of 18 to 70 years is eligible.
• ICICI gold loan is offered against the security gold jewellery and 24-carat gold coins. 
• The gold coins must have a purity level of 99.99%. 
• The gold coins must be issued by banks that are operating in India only. 
• The total weight of the gold coins should not exceed 50 grams per customer according to the RBI policy.

8. Indian Bank Gold Loan Eligibility Criteria

• All individuals, including senior citizens, are eligible for the loan Indian Bank Jewel Loan.
• The minimum age required to meet Indian Bank gold loan eligibility is 21 years.
• Applicants should not be aged more than 70 years.

9. Muthoot Finance Gold Loan Eligibility Criteria

• Any Indian citizen aged above 18 years can apply for a Muthoot Finance gold loan. 
• Applicants must provide the relevant documents and gold ornaments for a mortgage.
• No external or third-party guarantor is required to avail of the loan. 
• You can pledge any type of gold ornaments/jewellery, including watches, rings, necklaces, bracelets, pendants, kardahs, polki sets, etc. 

10. SBI Gold Loan Eligibility Criteria

• The applicant should be at least 18 years old to be eligible for SBI gold loan.
• The loan can be availed of by any individual (either singly or jointly), including bank employees and pensioners.
• The applicant must have a steady source of income.
• Meeting the eligibility can get you the best gold rate today.

11. Union Bank Gold Loan Eligibility Criteria

• Any individual owning gold ornaments, jewellery, or coins, singly or jointly, is eligible.
• Jewellery shop owners, jewellers, and pawnbrokers are not eligible for the loan.
• These loans can be obtained against gold jewellery, ornaments, and specially minted pure gold coins sold by any bank. 
• The weight of the gold coins should not exceed 50 grams per customer.
• The identity and address of the borrower should be established through their ration card/ passport/ identity card/ PAN card/ aadhaar card/ or any similar documents acceptable by the bank.

There are a few things that applicants must keep in mind when applying for a gold loan:

• Evaluation of gold to be pledged determines the loan amount: Your loan amount to be sanctioned depends on the value of the gold you have pledged to obtain the loan. The higher purity of the gold means a higher valuation and loan amount. The purity of the gold to be pledged must be 18 to 24k to be eligible for a loan. 
• Make sure to apply with a credible lender: Since your valuable gold is at stake, make sure the lender is trustworthy. Don’t apply for a gold loan from jewellers or small shops, as it may involve unfavourable terms and conditions. They can also be frauds. Hence, opt for a certified best gold loan bank or other institution only that you can trust. 
• Banks vs NBFCs: You can get a gold loan either from a bank or a Non-Banking Financial Company (NBFC). NBFCs are usually more liberal in evaluating your gold, and the process is hassle-free and simple. However, the interest rates tend to be higher than banks. 
• Check the repayment options: There are a few repayment options for a gold loan that you could consider, such as bullet payment, term loan, overdraft, etc.