How to Apply for a Bajaj Finance Gold Loan: Documents, Eligibility, and What You Can Expect
7th October 2026:Gold is often kept for important milestones, family needs or as a financial asset for the future. But when an urgent or planned expense comes up, selling jewellery may not always be the preferred choice. A gold loan offers another option by allowing eligible borrowers to use their gold as security while retaining ownership of it.
A simple guide to eligibility, documents, gold valuation and what borrowers can expect when applying for a gold loan.
Bajaj Finance offers gold loans against eligible gold jewellery, ornaments and gold coins, giving borrowers a way to access funds without selling their eligible gold. However, taking a gold loan is still a financial commitment. A borrower needs to understand whether they qualify, which documents are required and how the gold will be assessed before deciding to proceed.
Hence, it is important to understand the key stages of the process, from checking eligibility and preparing documents to understanding gold valuation, estimating the loan amount and completing the application with Bajaj Finance.
Who can apply for a Bajaj Finance Gold Loan?
A borrower looking to apply for Bajaj Finance Gold Loan must first meet the basic eligibility requirements.
For a Bajaj Finance Gold Loan, the applicant should be an Indian citizen aged between 21 and 80 years. Salaried individuals, self-employed professionals and pensioners can apply, subject to meeting the eligibility requirements.
The gold offered as security must also meet the lender’s eligibility requirements. Jewellery and ornaments between 18K and 22K purity may be accepted, while gold coins up to 24K purity may also be eligible.
Gold bars, bullion and gold-backed financial products such as ETFs and mutual funds are not accepted as collateral.
What documents are needed?
The application requires valid KYC documents to verify the borrower’s identity and address.
The borrower can submit any one of the following documents:
- Aadhaar card
- Voter ID card
- Passport
- Driving licence
- NREGA job card
- Letter issued by the National Population Registration
Having a valid KYC document ready can help make the application process smoother.
For loans above Rs. 2.5 lakh, credit checks are also applicable as part of the lending process.
How much can someone borrow against gold?
The amount a borrower can receive depends on the assessed value of the eligible gold and the applicable LTV limit.
Under the current RBI framework for consumption loans, the maximum LTV is:
- Loans up to Rs. 2.5 lakh: up to 85%
- Loans above Rs. 2.5 lakh and up to Rs. 5 lakh: up to 80%
- Loans above Rs. 5 lakh and up to Rs. 2 crore: up to 75%
For example, if eligible gold is assessed at Rs. 2 lakh, the maximum eligible loan amount at 85% LTV would be Rs. 1.7 lakh, subject to the applicable terms and eligibility criteria.
This is why the weight of the gold alone does not decide the loan amount.
How is the gold valued?
Before the final loan amount is decided, the pledged gold is assessed for purity and net weight.
The value considered for the loan is based on the intrinsic value of eligible gold. Stones, gems and other embellishments are excluded from the valuation.
For valuation, Bajaj Finance considers the lower of the previous day’s closing price or the 30-day average closing price for the relevant purity, as published by the Indian Bullion and Jewellers Association (IBJA) or a SEBI-regulated commodity exchange.
This approach gives the lender a consistent basis for assessing the value of the eligible gold.
How can the Bajaj Finance Gold Loan calculator help?
Before applying, a borrower may want to understand how much they could potentially borrow.
The Bajaj Gold Loan Calculator can provide an indicative estimate based on details such as gold weight and purity. It can help borrowers understand their possible loan amount and plan their borrowing requirement.
The calculator is only a planning tool. The final loan amount is determined after the actual gold is assessed and the applicable valuation, LTV and eligibility requirements are applied.
This distinction is important because the estimated value shown by a calculator may not be the same as the final amount offered after physical gold assessment.
How can someone apply for a Bajaj Finance Gold Loan?
A borrower can start the application online or visit a Bajaj Finance Gold Loan branch.
The online process generally involves these steps:
- Start the gold loan application online.
- Enter the registered mobile number.
- Verify the mobile number using the OTP.
- Enter the required personal details.
- Select the preferred gold loan branch.
- Download the in-principle loan eligibility letter.
The borrower then visits the selected branch with the gold and required KYC document. The gold is assessed for purity and weight before the final loan amount is determined.
What can a borrower expect at the branch?
The gold valuation is carried out as part of the application process. The borrower can understand the assessed purity, weight and value of the gold before proceeding with the loan.
Once the applicable checks and documentation are completed, the loan is processed as per the lender’s terms.
The pledged gold remains with Bajaj Finance during the loan tenure. It is stored securely in vaults with security measures and insured against specified risks while in the lender’s custody, subject to applicable terms. These risks may include loss, theft, damage or other risks covered under the applicable insurance terms. The gold is released after the applicable dues are cleared, subject to the loan terms.
What repayment options are available?
Borrowers can choose the repayment structure applicable to their loan.
Under bullet repayment, both the principal and interest due are paid at maturity. Under regular repayment, interest is paid at half-yearly intervals as per the repayment schedule, while the principal is paid at maturity.
Understanding the repayment structure before taking the loan can help borrowers plan their finances better.
What should borrowers check before applying?
Before they apply for a Bajaj Finance Gold Loan, borrowers should check more than just the possible loan amount.
They should consider:
- The purity and net weight of the gold
- The applicable gold valuation
- The LTV limit
- The applicable interest rate
- The loan tenure
- The repayment structure
- Applicable fees and charges
- Their ability to repay the loan
A borrower should take only the amount needed and choose a repayment structure that fits their financial situation.
What should borrowers remember?
Applying for a gold loan does not mean that the entire market value of the jewellery can be borrowed.
The final eligible amount depends on the assessed value of the eligible gold and the applicable LTV limit. Purity, net weight, valuation, credit checks where applicable and other eligibility conditions can also affect the final loan amount.
The Bajaj Finance Gold Loan Calculator can help borrowers plan before they pledge their gold, while the physical valuation determines the final eligible amount.
For borrowers who understand these steps in advance, applying for a gold loan can be a more informed financial decision.
*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 personalized 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 Stable outlook from Moody’s Rating.”
