
<p>An urgent need for funds, and you have gold at home! Turns out, you already have access to one of the quickest ways to access a gold loan. Gold loans prove to be of great help in times of emergency. They are popular for their –</p>



<ul class="wp-block-list">
<li>Fast processing</li>



<li>Minimal documentation</li>



<li>Flexible terms</li>
</ul>



<p>But this doesn’t mean that you would straightaway be able to march towards a bank or lender. Why? Because there is a criterion that defines whether you are eligible or not. ;</p>



<p>So, let’s learn what factors can influence the amount you would be able to get and at what gold loan interest rates.</p>



<h2 class="wp-block-heading">Your Age: Are You Old Enough or Too Old?</h2>



<p>Yes, your age matters when applying for a gold loan.</p>



<ul class="wp-block-list">
<li>You need to be at least 18 years old to apply.</li>



<li>The upper limit is usually 75 years.</li>



<li>If you are above 70, most lenders will ask you to add a co-borrower (usually a younger family member).</li>
</ul>



<p><em>Tip</em>: If you are applying on behalf of elderly parents, be ready to co-sign the application.</p>



<h2 class="wp-block-heading">You Must Be an Indian Resident</h2>



<p>To apply for a <a href="https://www.kotak.com/en/personal-banking/loans/gold-loan.html">gold loan</a>, you need to be a resident Indian citizen. NRIs and foreign nationals typically are not eligible, even if they own gold in India.</p>



<h2 class="wp-block-heading">The Gold You Pledge Must Meet Standards</h2>



<p>Not all gold is accepted. Lenders have clear guidelines:</p>



<ul class="wp-block-list">
<li><strong>Gold Jewellery</strong>: Between 18 and 22 karats.</li>



<li><strong>Gold Coins</strong>: 24 karat coins. The total coin weight allowed is up to 50 grams per customer.</li>
</ul>



<p>An important thing to note: Hallmarked jewellery is best to avoid confusion during valuation.</p>



<h2 class="wp-block-heading">Loan Amount and Required Documents</h2>



<p>Documentation depends on how much you are borrowing.</p>



<ul class="wp-block-list">
<li>For loans below â¹25 lakh, income proof is not required. This makes gold loans perfect for self-employed individuals or homemakers.</li>



<li>For loans â¹25 lakh and above, you will need:
<ul class="wp-block-list">
<li>PAN Card</li>



<li>Income Tax Returns (ITR)</li>



<li>Standard KYC documents (ID and address proof)</li>
</ul>
</li>
</ul>



<h2 class="wp-block-heading">Loan-to-Value Ratio (LTV): How Much Can You Get?</h2>



<p>The Loan-to-Value (LTV) ratio is how much loan you can get against the gold you pledge. RBI guidelines allow lenders to offer up to 75% of the current market value of the gold. So, you can get a higher loan for the same gold if the prices are high.</p>



<h2 class="wp-block-heading">Credit Score: Not Mandatory, But Still Important</h2>



<p>A gold loan is secured, so you do not have to rely on your CIBIL score.</p>



<p>But here&#8217;s the catch:</p>



<ul class="wp-block-list">
<li>A better credit score might help you get a lower <a href="https://www.kotak.com/en/personal-banking/loans/gold-loan/fees-and-charges.html">gold loan interest rate</a>.</li>



<li>If you have a poor repayment record, lenders might offer higher interest rates or lower loan amounts.</li>
</ul>



<p><em>Tip</em>: If you are planning a big loan, check your CIBIL score first; it could save you money.</p>



<h2 class="wp-block-heading">Gold Loan Interest Rates and Tenure</h2>



<p>The interest rate on gold loans typically ranges between 10% and 17% per annum, depending on:</p>



<ul class="wp-block-list">
<li>The lender</li>



<li>The loan amount</li>



<li>Your repayment track record</li>



<li>The tenure (usually 1 to 4 years)</li>
</ul>



<p><em>Tip</em>: Compare interest rates from multiple banks and NBFCs before deciding. A small difference in rate can save you a lot in the long run.</p>



<h2 class="wp-block-heading">Repayment Capacity</h2>



<p>While income documents are not always needed, especially for smaller loans, lenders may still evaluate your ability to repay, especially if:</p>



<ul class="wp-block-list">
<li>You apply for a high-value loan</li>



<li>You have existing loans</li>



<li>You are nearing retirement age</li>
</ul>



<p><em>Tip</em>: Choose a loan amount that you are confident about repaying on time to avoid penalties or loss of pledged gold.</p>



<h2 class="wp-block-heading">Gold Loan Eligibility at a Glance</h2>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td><strong>Eligibility Factor</strong></td><td><strong>Details</strong></td></tr><tr><td><strong>Age</strong></td><td>18–75 years (co-borrower needed if over 70)</td></tr><tr><td><strong>Citizenship</strong></td><td>Indian resident only</td></tr><tr><td><strong>Gold Quality</strong></td><td>18–22 karats (jewellery), 24 karats (coins ≤ 50g)</td></tr><tr><td><strong>Loan Amount</strong></td><td>No income proof is needed for up to â¹25 lakh</td></tr><tr><td><strong>Documents Needed</strong></td><td>KYC docs for all; ITR + PAN for loans ≥ â¹25 lakh</td></tr><tr><td><strong>Loan-to-Value Ratio</strong></td><td>Up to 75% of gold’s current market value</td></tr><tr><td><strong>Credit Score</strong></td><td>Optional but affects interest rates</td></tr><tr><td><strong>Interest Rate</strong></td><td>10.00%–17.00% p.a.</td></tr><tr><td><strong>Loan Tenure</strong></td><td>1 to 4 years</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Final Thoughts</h2>



<p>So, now you know that a gold loan can be a fast and flexible financial option for you if you know how the eligibility part works. ;</p>



<ul class="wp-block-list">
<li>Your age</li>



<li>Gold purity</li>



<li>Documents you need </li>



<li>Your credit score</li>
</ul>



<p>All factors are important in deciding your eligibility and the gold loan interest rates you are offered.</p>



<p>Why not do a little preparation to get the best deal without risking your gold?</p>

Key Factors Influencing Gold Loan Eligibility
