
All of us have all been through a financial crunch or a medical emergency at some point in our lives. At these times, it is quite common to fall short of cash to tide over the expenses. How do you fulfil this shortage of cash? Through a bank finance, yes, but which type of finance is best for such contingencies?
If you happen to hold or own any gold jewellery or coins, then a jewellery mortgage is the best option. Who is eligible, and how to apply for a gold loan? What are the supporting documents required for a gold loan? Most applicants know about a jewellery credit—but have little idea about its eligibility or requirements. Keep reading to know all about jewellery loan eligibility and more.
The best thing about a gold loan is that any individual who possesses gold coins or jewellery is eligible to take a jewellery loan. As an applicant, you do not need to produce any income-proof documents like salary slips or bank statements for a jewellery credit. While the gold loan eligibility criteria can vary across banks, here are some basic guidelines of who can apply for a jewellery finance from any bank or financial institution
Age of the applicant |
Any Indian citizen above the age of 18 years and a maximum of 70 years is eligible to apply for a jewellery mortgage. Some banks require you to have a co-borrower if the credit applicant’s age is above 70 years. |
The profession of the applicant: |
Most Indian banks and financial institutions offer jewellery mortgages to salaried employees, businessmen, and self-employed professionals. This also includes farmers and traders. |
Accepted quality of gold |
For jewellery mortgage eligibility, you can deposit gold in any form, including jewellery, minted coins, and ornaments. The minimum purity of the deposited gold must be 18 karats—and up to a maximum of 22 or 24 karats. Minted gold coins are accepted only if they are 24 karats with a maximum weight of 50 grams. The approved finance amount is determined mainly by the weight and current market value of the deposited gold. |
Next, we shall look at some of the supporting documents required for a gold loan
Apart from fulfilling the jewellery credit eligibility criteria, you need to submit copies of the following KYC document to the lending bank (in addition to the applicant’s Aadhar card)
Identification proof (any one document) |
Driving license, PAN card, passport, or Voter ID card |
Address proof (any one document) |
Driving license, rent agreement, passport, or utility bills like your electricity or gas bills |
Additional items |
Two recent, passport-sized photographs of the applicant |
Also, some banks may require you to submit your income tax returns (or ITR) for the previous three years if you are applying for a jewellery finance of above 25 lakhs. Submitting your PAN card is also mandatory if your annual income exceeds 5 lakhs.
Some banks may also need your income proof documents such as:
Now that you have met all the jewellery loan eligibility, let us look at why you should opt for a jewellery finance from Shriram City Union Finance (or SCUF).
Here are 10 reasons why you must take a jewellery credit only from Shriram City
The approved jewellery mortgage amount from Shriram City can vary depending on the daily price of gold and the Loan to Value or LTV ratio that varies depending on the lender. For example, the following table shows the gold loan eligibility amount for a gold price of INR 49,712/- (for 22 carats) and an LTV ratio of 75%.
The purity of the gold |
Weight in grams |
Average Gold Price |
Eligible loan amount |
22 carats |
10 |
49,712/- |
37,284/- |
20 carats |
10 |
45,193/- |
33,894/- |
18 carats |
10 |
40,674 |
30,505/- |
Here are the easy and simple steps in the entire jewellery loan process in Shriram City:
This article highlights the jewellery loan eligibility criteria for any applicant, along with the supporting documents that are needed to be submitted. Additionally, we have outlined 10 reasons why you should take a jewellery credit from Shriram City, including its simple and straightforward jewellery loan process
Want to raise some short-term cash using your gold? This is a good time to apply for a gold loan.