Factors That Determine Gold Loan Eligibility

 

Gold loan is the most satisfactory solution if you have golden jewels or coins. Do you know that knowing your eligibility for a gold loan is much more crucial than the whole process of making the repayment or lending the jewellery? If you are unaware of all the eligibility criteria, in that case, you can easily apply an online gold loan eligibility calculator to know if you are qualified or not.

Factors to Define the Gold Loan Eligibility:

Let’s have a look at the most critical factors that determine your eligibility for a gold loan.

1. Age limit of the candidate

A gold mortgage can be applied by any Indian citizen over 18 and up to 70. It’s important to know that you can not avail of the gold loan if you are currently above 70 years of age. But specific lenders offer gold loans to citizens above 70 years if they have a co-borrower.

2. The profession of the applicant

Financial institutions provide gold loans to earning- members, workers, people in business, and self-employed individuals. It also comprises agriculturists, farmers, and merchants. Gold loan ROI or return on investments is one of the significant benefits of these loans.

3. Quality of gold

Gold in any form, such as jewellery, coins is eligible for gold loans. The gold must be at least 18 karats pure, preferably 22 or 24 karats pure or higher. 24-carat gold coins up to 50 grams are accepted. The authorized loan amount is based on the gold's weight and market value.

The Method for Calculating the Gold Loan:

For the per-gram gold loan rate, the net weight of gold is multiplied by the market rate and the purity factor. You will also need the gold carat. It determines the gold's purity. You must also indicate the sort of gold jewellery you own. After entering all this information into the gold loan eligibility calculator, you will be given the total worth of your gold items and the maximum acceptable loan amount.

A gold loan is a fantastic option to handle an urgent financial crisis. Several leading financial companies in India offer a good amount of gold loans. You have to check your eligibility criteria and apply for it. Remember that your age, profession, and quality of gold are the most crucial factors here.