Gold loans are one of the simplest ways to get quick financial assistance in India. Since gold is a highly secure asset, lenders provide loans against it with minimal paperwork and fast disbursement. However, not everyone is automatically eligible for a gold loan. Banks and NBFCs follow certain criteria such as age limit, income proof, CIBIL score, and documentation before approving the loan. In this guide, we will explain the complete gold loan eligibility criteria in 2025 so you can understand whether you qualify and how to increase your chances of approval.
Basic Gold Loan Eligibility Criteria in 2025
Gold loan eligibility is generally simple compared to other loans like home loans or personal loans. Below are the key requirements:
| Eligibility Factor | Requirement in 2025 |
|---|---|
| Age Limit | 18 – 70 years (some lenders allow up to 75) |
| Minimum Gold Quality | 18 to 24 Karat |
| Income Requirement | Stable source of income preferred but not mandatory |
| CIBIL Score | 650+ recommended (not compulsory for all lenders) |
| Documents Required | ID Proof, Address Proof, Photograph, PAN/Aadhaar |
| Employment Type | Salaried, self-employed, farmers, traders, and housewives can apply |
Age Limit for Gold Loan
Most banks and NBFCs require applicants to be at least 18 years old. The maximum age is generally set at 70 years, although some lenders extend it to 75 years depending on repayment ability. Senior citizens may also get a loan if they provide valid income proof or have family members as co-borrowers.
Gold Purity and Valuation
The gold pledged must be between 18K to 24K purity. Lenders usually prefer 22K and 24K gold for valuation. Ornaments such as coins and jewelry are accepted, but studded stones and gems are not considered while calculating the loan value. The loan amount is determined based on the Loan-to-Value (LTV) ratio, which is capped at 75% by RBI guidelines.
Income and Employment Requirement
Unlike personal loans, a gold loan does not always require proof of income. Since the loan is secured against physical gold, lenders feel safe disbursing it even to individuals with no fixed income. This is why housewives, students, and farmers can also apply. However, a stable income source helps increase the chances of higher loan amounts and flexible repayment options.
CIBIL Score and Credit History
One of the biggest advantages of a gold loan is that it is available even to people with low or no credit history. While some lenders may check your CIBIL score, it is not always mandatory. A score of 650+ is ideal, but even those with a lower score can apply, as the gold itself acts as security.
Documents Required for Gold Loan in 2025
Lenders ask for minimal documentation. Below is a list of commonly required documents:
- Identity Proof: Aadhaar card, PAN card, Passport, Voter ID, Driving License
- Address Proof: Aadhaar, Passport, Utility Bill, Ration Card
- Photograph: Passport-size photo of the applicant
- Income Proof (optional): Salary slip, bank statement, or ITR (for higher loan amounts)
Eligibility for Different Categories of Borrowers
- Salaried Employees: Need to submit ID, address proof, and may be asked for salary slip if applying for high loan value
- Self-Employed & Business Owners: Can apply with minimum documents, income proof may be asked
- Farmers: Can pledge gold ornaments and avail of agriculture gold loans at lower interest rates
- Housewives & Students: Eligible if they own gold ornaments, no income proof required
Factors That Affect Gold Loan Eligibility
- Purity of Gold – Higher purity (22K/24K) results in better valuation
- Weight of Gold – Heavier ornaments allow higher loan amounts
- Credit Profile – Good repayment history may get you lower interest rates
- Lender Policies – Each bank or NBFC has its own terms regarding minimum loan amount and maximum tenure
Example of Gold Loan Eligibility
Suppose you have 50 grams of 22K gold ornaments. If the gold price is ₹5,000 per gram, the total value is ₹2,50,000. Based on the RBI 75% LTV rule, you can get up to ₹1,87,500 as a gold loan. Even if your CIBIL score is low, the lender will approve the loan as long as you meet the age and document requirements.
Tips to Improve Gold Loan Eligibility
- Keep gold ornaments in high purity (22K/24K) for better loan value
- Maintain a good repayment history for better interest rates
- Choose NBFCs and banks with flexible eligibility policies
- Submit complete and correct documents to avoid rejection
Conclusion
Gold loan eligibility criteria in 2025 are simple and borrower-friendly. Almost anyone between 18 to 70 years with gold ornaments can apply. Unlike other loans, gold loans do not require high income or excellent credit history, making them the most accessible financial product in India. By understanding age limits, income requirements, and required documents, you can apply confidently and get instant approval. Always compare lenders to choose the best option for interest rates and repayment terms.