Now Reading: Gold loan eligibility in Delhi depends on purity, LTV and KYC
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Gold loan eligibility in Delhi depends on purity, LTV and KYC
Borrowers in Delhi seeking a gold loan need gold jewellery of 18 to 22 karat purity or coins up to 24 karat, with the loan amount determined by the metal's assessed value…
Borrowers in Delhi seeking a gold loan need gold jewellery of 18 to 22 karat purity or coins up to 24 karat, with the loan amount determined by the metal's assessed value rather than the purchase price. The Reserve Bank of India-specified Loan-to-Value ratio governs the maximum amount: 85% for loans up to Rs 2.5 lakh, 80% for loans between Rs 2.5 lakh and Rs 5 lakh, and 75% for loans up to Rs 2 crore. Non-gold materials such as stones and beads are excluded from valuation.
Eligible applicants must be Indian citizens aged 21 to 80, and can be salaried, self-employed or pensioners. Required documents for verification include Aadhaar, voter ID, passport or driving licence, with a PAN card needed for loans of Rs 5 lakh or above. Borrowers can apply online and complete the process at a branch after their gold is assessed for purity and weight.
Indian Opinion Analysis
For a secured lender, the loan-to-value cap is the single most important regulatory guardrail. The Reserve Bank of India sets different LTV limits for gold loans, 85% for amounts up to Rs 2.5 lakh, stepping down to 75% for loans above Rs 5 lakh up to Rs 2 crore. This sliding scale means a borrower with gold worth Rs 10 lakh can borrow at most Rs 7.5 lakh, not the headline 85% figure many expect. The metal valuation itself uses the lower of the previous day's IBJA close or a 30-day average, which prevents volatility from inflating loan amounts. For borrowers, the practical stake is the non-gold content in jewellery, stones and beads are stripped out before valuation, so two pieces of identical gross weight can yield very different loan amounts.
Source: thefederal.com
This brief was synthesised by AI from the source linked above.
