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How gold loans work

Gold Loan Eligibility

Who can get a gold loan, how the loan amount is decided, and the new repayment-capacity check above ₹2.5 lakh.

Updated 27 September 2026 · 8 lenders tracked
Lowest gold loan rate
8.50%
Indian Bank Jewel Loan
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What you need to know

Almost anyone who owns gold jewellery can get a gold loan — the gold itself is the main eligibility. The amount depends on net weight, purity, today’s price and the RBI LTV cap for your loan size.

Basic eligibility

  • Age 18+ (upper age limits vary by lender)
  • Ownership of gold ornaments or gold coins (coins up to 50 g)
  • KYC documents
  • For loans above ₹2.5 lakh: lender must assess your repayment capacity
  • Agri gold loans: proof of agricultural activity
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How the loan amount is calculated

  1. Net weightStones, lac and other non-gold parts are deducted.
  2. PurityTested and valued at actual karat (e.g. 22K = 91.6%).
  3. PriceLower of 30-day average and previous-day price.
  4. LTV85% / 80% / 75% cap by loan size.
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Frequently asked questions

Can a student or homemaker get a gold loan?

Yes, if they own the gold; income proof may be needed for larger or EMI loans.

For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.