What is a Gold Loan?
A Gold Loan is a secured loan where individuals pledge their gold ornaments as collateral to get instant funds. It is a quick and hassle-free financing option with lower interest rates compared to personal loans.
Features & Benefits of Gold Loan
✅ High Loan Value – Get up to 75% of your gold’s market value
✅ Low Interest Rates – Starting from 7% p.a.
✅ Flexible Tenure – Ranging from 3 months to 3 years
✅ No Income Proof Required – Approval is based on gold purity
✅ Quick Disbursal – Loan sanctioned in 30 minutes
✅ No Credit Score Dependency – Ideal for individuals with low or no credit history
Gold Loan Eligibility Criteria
| Criteria | Requirements |
|---|---|
| Age | 18 – 70 years |
| Gold Purity | 18 Karat & above |
| Employment Type | Salaried, self-employed, farmers, traders, and business owners |
| Nationality | Indian citizen |
| CIBIL Score | Not required |
Gold Loan Interest Rates & Charges (2024)
| Lender | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| Muthoot Finance | 7.00% – 16.00% | 0.25% of loan amount |
| Manappuram Finance | 8.00% – 17.00% | ₹100 onwards |
| HDFC Bank | 9.50% – 14.50% | 1% of loan amount |
| ICICI Bank | 10.00% – 16.00% | ₹500 onwards |
| Axis Bank | 9.00% – 15.50% | NIL |
Note: Interest rates may vary based on loan amount & tenure.
Documents Required for Gold Loan
📌 Basic KYC Documents:
- Aadhaar Card / PAN Card / Voter ID / Passport / Driving License
- Address Proof (Utility Bills, Rental Agreement, etc.)
📌 Gold Valuation Report:
- Done by the lender to assess the gold’s purity and weight.
📌 Photographs:
- Recent passport-size photos.
How to Apply for a Gold Loan?
📌 Step 1: Visit the nearest branch or apply online
📌 Step 2: Submit your gold ornaments for valuation
📌 Step 3: Loan amount is approved based on gold purity
📌 Step 4: Complete KYC verification
📌 Step 5: Receive funds instantly in your bank account
Gold Loan Repayment Options
- Bullet Repayment: Pay principal & interest at the end of tenure
- Monthly EMI: Repay in equal installments
- Overdraft Facility: Withdraw as per requirement & pay interest only on used amount
Frequently Asked Questions (FAQs)
1. What is the maximum loan amount I can get on a gold loan?
You can avail up to 75% of your gold’s value, depending on purity and lender policies.
2. Can I get a gold loan without income proof?
Yes, gold loans do not require income proof or a CIBIL score.
3. What happens if I fail to repay my gold loan?
If you fail to repay, the lender may auction your gold after the grace period.
4. Is my gold safe with the lender?
Yes, your gold is stored in high-security vaults and insured for safety.
5. Can I prepay my gold loan without charges?
Most lenders allow zero prepayment charges, but check with your lender.
Apply for a Gold Loan Today!
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📞 Need help? Contact us for expert assistance.