Gold loan eligibility criteria



During tough times you can quickly get funds by applying for a gold loan. However, it is essential to check your eligibility criteria before applying for a gold loan. The eligibility requirement for a gold loan is very basic and minimal.

You can check whether or not you are eligible for a Gold Loan by visiting the bank's online website. A lot of banks like SBI Gold Loan or HDFC mention the eligibility criteria required for each loan on the website page so you can easily compare the eligibility criteria of different banks and choose the best one that fits you. 

Factors that affect the gold loan:-

We all know that it's crucial to meet the eligibility criteria, but have you ever wondered why it is so important and what factors affect these criterias to make them really important? To clear this doubt, we've mentioned some of the top factors that affect the eligibility criteria below: 

  1. Age:- Age is the essential factor that determines whether or not your Gold loan application should be approved. Usually, anyone above 18 years of age is eligible to apply for a gold loan. But this criteria usually differs from one bank to another because many banks only allow an individual who is 21 above. 

  2. Gold weight:- The loan amount you get from the gold loan is by evaluating your gold weight. And as you already know that a gold loan is applied against a gold ornament. So it's necessary to give a heavy and genuine gold if you want a high loan amount. Banks evaluate the gold to check its purity and weight to provide you with a loan amount according to that. However, you don't get 100% of your gold value. The maximum amount you can get is 85%, but banks have increased this LTV rate to 90% of the gold value during this pandemic. While evaluating the overall weight of a gold ornament, banks don't include stones such as diamonds, gems or platinum that are included in your gold ornament. They only evaluate the weight of the gold parts that are in your ornament. It's essential to check your Gold wait before applying. 

  3. Gold purity:- Checking your goals purity is the second most crucial part while evaluating your good. Lenders always check your Gold purity to check if the Gold Rate is equal to your gold's purity. As you must have already known, the purity of gold is measured in karats. The karat usually ranges from 1-24. 24 karat is considered the purest form of gold; it is in the softest form, making it unable to be moulded into jewellery. Gold is often mixed with other metals like zinc, copper or silver to make it durable. 

Gold loan eligibility:-


The minimum age accepted by the banks is 18 years. And the maximum age accepted by the banks is 75 years.


Anyone can apply for a gold loan. Banks don't have particular employment status requirements. You can be unemployed, salaried, self-employed, a housewife or a student. 

Gold accepted:- 

Gold ornaments, jewellery, coins, etc. 

Minimum Gold Purity:- 

The minimum gold purity required is 18 karats.

Identity proof:- 

You will have to submit documents like a passport, PAN card, Aadhar card, voter ID card and driving licence for identity proof. 

Residence Proof:- 

You'll have to submit documents like ration card, telephone bill, electricity bill, water bill, or any other utility bills for residence proof. (Not more than three months old) 

Minimum Loan Amount:- 

The minimum loan amount given by the banks is INR 1,600 in rural areas. And INR 10,000 in urban areas. 


The LTV rate and interest rate usually differs from one bank to another. So it's essential to ellochoose a bank that provides a high LTV rate and low-interest rate for gold loan.