Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold.
A gold loan is a secured loan wherein the borrower keeps their gold, ranging from 18K to 24K, with a bank or a financial institution as security and avails capital against it. On comparative terms, a gold loan can be understood as a similar concept to a “mortgage loan” in which the owner keeps their house or property as mortgage with the bank and takes a loan against it to fulfill their need for capital.
Apply for loanA vast array of institutions offer you the best Gold loan rates at the most competitive rates and affordable EMIs.
To qualify for a Gold Loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a Gold Loan.
Typically, borrowers should be 18 years or older.
You must own the gold being pledged.
The gold should meet the lender's purity standards.
Valid government-issued ID for identity verification.
Below is some of the basic documents which are required at the time of Gold Loan
If you have a question that deals with clients, customers or the public in general, then have a look at some of the basic FAQs.
A gold loan is a secured loan where you pledge your gold ornaments or assets as collateral to borrow money from a financial institution.
The loan amount depends on the purity and weight of the gold. Lenders usually offer around 60-75% of the gold's value as a loan.
Repayment periods are flexible, usually ranging from a few months to a few years, depending on the lender's terms.
If you can't repay, the lender will auction the gold to recover the loan amount. It's essential to communicate with the lender to explore options before this happens.
Lenders usually have secure storage facilities for the pledged gold to ensure its safety.
Charges may include processing fees, valuation fees, and in some cases, foreclosure charges or late payment fees.