How does a pensioner's income affect their eligibility and loan amount?

The maximum gold loan amount a pensioner can avail of depends primarily on the quantity and purity of gold jewellery pledged as collateral. The more gold in terms of weight and higher its quality, the bigger is the potential loan amount.

However, a pensioner's regular monthly pension income plays a critical role in determining the final loan amount sanctioned. This is because gold loans need to be repaid every month through the tenure along with interest.

Financial institutions want to ensure pensioners have sufficient repayment capacity before disbursing large gold loans. That's why most loan providers have set a minimum monthly pension eligibility requirement, usually between ₹8,000 to ₹15,000.

Even if a pensioner pledges high-value gold jewellery, they may get lower loan amounts if their verified pension earnings are considered inadequate to service large monthly repayments.

Higher pension income allows a pensioner to qualify for bigger gold loan amounts while meeting the loan provider’s income eligibility criteria.

Therefore, along with the value of gold pledged, a pensioner's steady income stream determines their loan eligibility and the maximum loan amount that can be availed against gold collateral.