Overview
Bajaj Finance Ltd, a subsidiary of Bajaj Finserv Ltd and a deposit‑taking NBFC‑D registered with the RBI, has issued a press release announcing a free online Gold Loan Calculator designed to help prospective borrowers estimate the loan amount they may be eligible for against eligible gold jewellery, ornaments or coins before submitting an application.
How the loan amount is determined
The calculator does not rely solely on the total weight of gold; it incorporates gold purity, the eligible net gold weight, the applicable gold price used for valuation, and the RBI‑prescribed Loan‑to‑Value (LTV) limits. For valuation, Bajaj Finance uses the lower of the previous day’s closing price or the 30‑day average closing price published by the Indian Bullion and Jewellers Association (IBJA) or a SEBI‑regulated commodity exchange. Valuation is performed in the borrower’s presence to ensure transparency. Only the pure gold content is considered; stones, beads and other non‑gold materials are excluded.
Eligibility and LTV structure
The lender accepts gold jewellery and ornaments between 18 and 22 karat and gold coins up to 24 karat, subject to its terms. RBI’s tiered LTV limits apply as follows: up to ₹2.5 lakh loan amount – 85 % LTV; more than ₹2.5 lakh to ₹5 lakh – 80 % LTV; more than ₹5 lakh to ₹2 crore – 75 % LTV. For example, if eligible gold is valued at ₹2 lakh and the 85 % LTV applies, the estimated loan amount would be approximately ₹1.70 lakh, subject to final verification.
Using the calculator
The tool guides users through five steps: (1) entering the approximate weight of the gold in grams; (2) selecting the gold purity (18K‑22K for jewellery, up to 24K for coins); (3) providing the desired loan amount or preferred repayment tenure; (4) reviewing the estimated loan amount displayed by the calculator; and (5) completing the formal gold valuation, where the final loan amount is confirmed after physical verification of weight, purity and eligibility.
Benefits of pre‑application use
The calculator gives borrowers an early indication of the funding they could raise, helps them assess whether the estimate aligns with their borrowing requirement, illustrates how changes in weight or purity affect the loan size, and assists in deciding the amount of gold to pledge. It also offers a convenient way to plan the application before the in‑person valuation.
Caveats
The estimate is based solely on the information entered by the user and may differ from the final eligible amount after physical verification. Non‑gold components such as stones or gems are excluded from valuation, and the applicable LTV limit can constrain the maximum loan. Borrowers are advised to review the interest rate, fees, repayment terms and other charges before proceeding.
About Bajaj Finance Ltd
Bajaj Finance Ltd serves over 124.43 million customers through a diversified portfolio that includes consumer loans, SME finance, commercial lending, rural lending, fixed deposits and payments, delivered via web, app and more than 4,000 locations. The company holds an AAA/Stable long‑term credit rating, A1+ short‑term rating, CRISIL AAA/Stable and ICRA AAA/Stable for its FD programme, a BBB/Stable long‑term rating and A‑2 short‑term rating from S&P Global Ratings, and a Baa3 corporate family rating with a stable outlook from Moody’s. It positions itself as a FinAI company focused on technology‑driven, personalised customer experiences.
Disclaimer: The press release is provided under an arrangement with Newsvoir; PTI assumes no editorial responsibility.