Gold Loan Eligibility Process

Your gold jewellery can help you fulfil your business needs on your own when you need funds instantly when you need funds in an emergency. However, you need to ensure that you are eligible for the loan before you apply for one. Here are five things you need to know about Gold Loan eligibility process.


Age of the applicant
To be eligible for a Gold Loan, you should be in the age group of 18 to 65 years. 

Loan repayment tenure
Gold Loan eligibility criteria also involve the loan repayment tenure. Typically Gold Loans are offered for minimum and maximum tenures of 6 and 24 months respectively, and you should be able to repay the loan within this tenure.

Your occupation
Another essential aspect of Gold Loan eligibility is your occupation. You can be a salaried professional, a self-employed individual, a business owner, an entrepreneur, a student, a senior citizen, a pensioner, or a housemaker to be eligible for the loan.

Type of gold accepted
While speaking of Gold Loan eligibility, it is essential to mention the type of gold accepted by Banks. Most banks accept only gold jewellery.and the purity of the gold should be 18K to 22K. 

Maximum loan to Value ratio (LTV Ratio)
When you check Gold Loan eligibility, you will find out that the right bank will offer a high Loan to value ratio. You can get a maximum LTV of 75% of the value of the gold provided as collateral.

Before you apply for a Gold Loan, make sure you use a Gold Loan eligibility calculator. Click here to apply for a Gold Loan from HDFC Bank.