January 5, 2019

Gold Loan

Gold loan being a secured loan is one of the most straightforward and quickest way to get money using gold as a collateral. Whatever your need be, you get access to quick funds. Gold loan is mostly processed within a few hours as the need for documentation is minimal. It is usually given for a short to medium term. During the loan tenure the gold jewellery/coin are kept with the bank and returned back to the borrowers after completion of the loan tenure.

Benefits of Applying a Gold Loan

A gold loan might be the right option for you based on your need

  • You can get instant loan with quick disbursement within a few hours
  • Minimal documentation without requirement of any income/business proof document
  • Gold loan can be taken for any personal need similar to a personal loan
  • Lower interest rate for a short term need compared to interest rate being offered by a personal loan
  • You can gold loan for upto 75% of the value of gold
  • Pre-payment charges are waived off in many cases by Banks and NBFCs
  • Credit score does not matter; people with bad credit score would also get a gold loan
  • First time borrowers, people with no income proof would be able to get instant money by applying for a gold loan
  • You can get loan amount as low as Rs 10,000 and as high as Rs 50 Lakh

Key Features of a Gold Loan

FeaturesGold loan details
Interest Rate10.5% – 12%
Gold Loan AmountRs 10,000 – 50 Lac
Tenure1 day to 36 months
Processing FeeNil – 2%

Gold Loan Amount – You can apply a gold loan for any amount between Rs 10,000 to Rs 15 Lac against the gold jewellery you possess. Higher the loan amount lower would be the interest rate for gold loan.

Tenure – The loan repayment tenure of a gold loan can range from a few days to months based on the discretion of the Bank.

Interest Rate on Gold Loan – Banks and NBFCs usually offer loan against your gold with interest rate 10.5% onwards

Relationship of the borrower with the Bank –Banks and NBFCs usually charge a lower interest rate to their existing customers who have an active account with them

Documents required for a Gold Loan

Gold loan requires very basic kyc documentation unlike other form of loan where income proof, business proof etc are required. Below are the basic KYC documents required for a Gold Loan

Identity Proof – Any one document among : Passport / Ration card / Driving license / Aadhar Card / PAN Card

Address Proof – Any one document among : Passport / Driving License / Phone Bill / Electricity Bill / Rent Agreement / Aadhar Card