Gold Loan for Urgent Cash Needs

Below is the gold loan interest rate list of the top 10 lenders in India: 

Below are the key features and benefits of a gold loan in India:

• Affordable interest rates: Gold loan interest rates are generally lower than personal loans and other unsecured loans, keeping EMIs smaller and preventing unnecessary financial burden.
• Low charges: Gold loans charge lower processing, foreclosure, and other charges, making it an economical option during an emergency.
• Minimal documentation: Unlike other secured loans, a gold loan does not require heavy paperwork. In fact, some lenders may even offer a gold loan without income documents.
• An excellent credit score isn’t mandatory: It is not tough to get a gold loan even if you lack a proper credit history and score. 
• Quick processing: Lenders are quick to disburse gold loans without any background or income checks. You might even get the loan disbursed the same day.
• Multipurpose: Gold loans can be used for any urgent need, including educational, business, travel, medical, wedding, gadget purchase, etc.
• Flexible repayment: Gold loans can be repaid in Equated Monthly Instalments (EMIs) during a flexible repayment tenure of a few months to years.
• Easy to furnish collateral: The security (gold) required to be pledged is available in almost every Indian home.
• Anyone can apply: Even a housewife or a non-working individual without any income can apply for a gold loan if they have sufficient gold to pledge.

The eligibility criteria for a gold loan may vary from one lender to another. However, below are some of the most common requirements that lenders look for:

• The applicant should be an Indian citizen, aged 18 years or above
• Most banks and Non-Banking Financial Companies (NBFCs) accept only gold ornaments/ jewellery/ coins (sold by banks) as collateral.
• The applicant should have gold of 18 to 22-carat purity to pledge for the loan. 
• If gold coins are pledged, then the purity should be 24 carats.
• Gold bars, idols, biscuits, and other gold articles cannot be pledged as collateral with the bank/ NBFC.
• If the loan is availed for agricultural purposes, proof of landholding should be available
• Some lenders may insist on a stable income.

The documents required for a gold loan are as mentioned below:

• Address proof: Aadhaar Card, Voter ID Card, Driving Licence, Passport, Utility Bills, etc.
• KYC documents: Aadhaar Card, PAN Card, Voter ID, Driving Licence, Passport, etc.
• Recent passport-size photographs
• Proof of landholding if the gold loan is availed for agriculture and allied activities.

• On our portal, click the ‘Gold Loan’ tab.
• Enter the required details in the given online form, such as your full name as per your PAN Card, mobile number, email ID, and residence PIN Code.   
• Then click on the ‘Proceed’ tab.
• You will get a call from our gold loan representatives to complete the application process and other formalities.

Here are some important tips to consider before you apply for a gold loan:

• Research: Do your research before applying for a gold loan. You must check the different lenders for their offers, interest rates and other charges, before making a decision.
• Loan to Value Ratio (LTV): LTV is the loan amount that you can avail of against the value of your gold article to be pledged as collateral. You can get up to 75% to 90% of the gold’s value as a loan amount. 
• Safety: Once you deposit a gold item as collateral with any lender, they are kept in a safe vault. 
• Default: You must repay your loan on time. If you default, the lender has the right to seize the pledged gold item or sell it to recover the loan amount.
• Repayment: Gold loan repayment can be done through different ways, like the Bullet Repayment method, Pay Interest as EMI & Principal Later, Regular EMI, or Partial Payments, as per your convenience.