What Is The Eligibility Criteria For A Gold Loan?

Gold loan is a secured loan offered against gold jewellery. It is one of the easiest ways to meet a financial emergency, because the eligibility criteria for taking out a gold loan are very relaxed. You can get a gold loan just by submitting your gold jewellery and copies of KYC documents with the lender. A few banks do not even ask for proof of income. Gold loan proceedings can be used to meet any financial emergency, which includes agricultural expenses, educational expenses and so on.

Gold loans are an easy and convenient way to borrow money. It doesn’t matter whether or not you have a bank credit history or a salaried income. As long as you possess gold coins or jewellery, you’re eligible for a jewellery credit. We don’t make you produce any income-proof documents like salary slips or bank statements if you apply for a jewellery loan. Although the gold loan eligibility requirements can vary across banks, we’ve compiled the basic guidelines of who can apply for jewellery finance from any bank or financial institution.

  1. Age of the applicant: Opening up a jewellery loan account is quite easy. However, you must be above the age of 18 years and a maximum of 70 years to apply for a jewellery mortgage. Some banks require you to have a co-borrower if the credit applicant’s age is above 70 years.
  2. The profession of the applicant: Banks and financial institutions in India offer secure loans that are great for salaried employees, businessmen, and self-employed professionals. You can even get a loan if you’re a farmer or trader. Instead of storing gold or silver at home you can have it secured against your loan.
  3. Accepted quality of gold: You can deposit gold in any form, including jewellery, minted coins and ornaments. To meet the eligibility criteria, the minimum purity of the deposited gold needs to be 18 karats—and up to a maximum of 22 or 24 karats. Minted gold coins are accepted only if they are 24 karats with a maximum weight of 50 grams.

Documents Required for Gold Loan:

  1. ID Proof: PAN card, Driving license, passport, or Voter ID card
  2. Residence(Address) Proof: Driving license, rent agreement, or utility bills like your gas or electricity bills 
  3. Photographs: passport size photographs of the applicant

If you’re looking for a jewellery loan, your bank may ask you to submit income tax returns (or ITR) for the previous three years if you are applying for a loan of over Rs. 25 lakhs. Submitting your PAN card is also essential if your annual income exceeds Rs. 5 lakhs.

Few things to know before applying for Gold Loan:

The gold loan loan application process involves various steps and documents. Any applicant who is applying for a gold loan, especially those who are making their first-time loan application, must be aware of the following points:

  1. Loan Amount: The bank will evaluate your gold articles, and then offer you a loan based on their value. Currently, you can receive up to 90% of the value of gold articles as an amount.
  2. Security: Banks and Non-banking Financial Corporations (NBFCs) store your gold article safely in their vault. Gold loan lenders can provide insurance, which is one of the safety measures taken by them while keeping your gold articles.
  3. Payment Default: If the amount is not repaid by the agreed date, then the bank reserves the right to sell your gold articles for the loan amount.


Is your gold jewellery enough to help you out in tough times? We all know how expensive it is to buy gold jewellery. However, there are times when you might need funds to help you through difficult times. In such situations, you can apply for a Gold Loan against your gold. Keep in mind that the loan amount will depend on various factors such as the market value of the gold, your credit score and history, your job and income, etc. Ensure that you know the eligibility criteria before applying for one.  

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