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Basic Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Age | 18-70 years (varies by lender) |
| Citizenship | Indian citizens & residents |
| Gold Ownership | Self-owned gold ornaments |
| Gold Purity | Minimum 18 karats (most prefer 22K) |
| Income Proof | Usually not required |
| Credit Score | Not checked (secured loan) |
Gold Purity Requirements
| Purity | Acceptance | Loan Amount Impact |
|---|---|---|
| 24K (99.9%) | Accepted (rare as jewelry) | Highest value |
| 22K (91.6%) | Most preferred | Standard valuation |
| 20K (83.3%) | Accepted | Slightly lower value |
| 18K (75.0%) | Minimum accepted | Lower loan amount |
| Below 18K | Usually rejected | Not applicable |
How Purity is Checked
Lenders use karat meters and acid tests to verify gold purity. The process takes 5-10 minutes and doesn't damage your jewelry. Hallmarked gold with BIS certification gets accepted faster.
Gold Items Accepted
? Accepted Items:
- Gold ornaments (necklaces, chains, bangles)
- Gold earrings and rings
- Gold coins (up to 50 grams per coin, bank-issued)
- Gold bars with proper documentation
- Antique gold jewelry
- Temple jewelry
? Not Accepted:
- Gold-plated items (fake gold)
- Gold coins above 50 grams each
- Non-bank gold coins without documentation
- Heavily studded jewelry (stones over 50% weight)
- Gold items below 18K purity
- Suspected stolen property
Weight Requirements
| Lender Type | Minimum Weight | Maximum Weight |
|---|---|---|
| Banks | 10-20 grams | No upper limit |
| Muthoot Finance | 2 grams | No upper limit |
| Manappuram | 5 grams | No upper limit |
| IIFL Finance | 10 grams | No upper limit |
Documents Required
Mandatory Documents:
- Identity Proof (any one): Aadhaar Card, PAN Card, Passport, Voter ID, Driving License
- Address Proof (any one): Aadhaar Card, Passport, Utility Bill, Rental Agreement
- Passport-size photographs: 2 copies
- Gold jewelry: For pledge
Optional Documents (may expedite process):
- Original purchase invoice of gold (proves ownership)
- BIS hallmark certificate
- Bank account details for fund transfer
Tip
Carry original purchase receipts if available. They help prove ownership and may speed up processing. However, most lenders accept gold even without receipts based on self-declaration.
Age-wise Eligibility
| Lender | Minimum Age | Maximum Age |
|---|---|---|
| SBI | 18 years | 70 years |
| HDFC Bank | 21 years | 65 years |
| Muthoot Finance | 18 years | 75 years |
| Manappuram Finance | 18 years | 70 years |
Who Cannot Get Gold Loan?
- Minors (below 18 years)
- Non-residents (NRIs) - most lenders don't offer
- People pledging gold owned by others
- Those with gold below minimum purity/weight
- Blacklisted individuals (fraud/crime history)
Special Eligibility for Higher Loan Amounts
To get loan amounts above Rs. 20 lakhs:
- Additional KYC verification
- Source of gold documentation
- Income tax returns (for Rs. 50 lakh+)
- PAN card mandatory
Frequently Asked Questions
Yes, ancestral/inherited gold is accepted. You need to sign a self-declaration stating ownership. Some lenders may ask for additional identity proof of family relationship for very high-value ancestral pieces.
No, income proof is not required for gold loans. The gold itself is the security, so your income or employment status doesn't matter. This makes gold loans accessible to everyone including housewives, students, unemployed individuals, and self-employed persons.
Most lenders don't offer gold loans to NRIs. However, NRIs can authorize a family member to pledge their gold through power of attorney. The loan will be in the family member's name. Few NBFCs have special schemes for NRIs visiting India.
Typically no. Since gold loan is fully secured, lenders don't check CIBIL score. Even if they do a soft check, it's for fraud prevention, not approval decision. People with low CIBIL can easily get gold loans.
Conclusion
Gold loan has the simplest eligibility criteria among all loan types. If you're 18+, have 18K or higher purity gold, and valid ID/address proof, you're eligible. No income proof, no credit score check, no complex documentation. This makes it ideal for emergencies when you need quick funds.
Use our Gold Loan EMI Calculator to calculate your loan eligibility!